Mobile loyalty programs fail to take off
Mobile loyalty programs, while still in their infancy, aren’t so far wowing customers, according to two recent surveys.
Bond Brand Loyalty said its "2015 Loyalty Report," based on an online survey of 11,316 consumers, revealed "mobile loyalty apathy."
According to the survey, while 12 percent of loyalty program customers have downloaded a program app (an increase of five percent over the prior year), 61 percent of smartphone owners are not aware whether or not the loyalty programs in which they are enrolled even offered a mobile app.
The mobile engagement rate contrasts with the 48 percent of members who agreed they would like to engage with their loyalty programs through their mobile device.
On the positive side, 62 percent of customers using the program’s mobile app are satisfied with the program, as compared to only 45 percent among members who have not downloaded a mobile loyalty app.
Meanwhile, a study from Inreality, based on a survey of 1,361 consumers and numerous follow-up interviews, found a much higher 40 percent use loyalty programs via their mobile.
But, according to the study, only 46 percent of shoppers who use loyalty programs via their mobile considered them to be important in their purchase decision. More troubling, 71 percent of shoppers who use loyalty programs on their mobile still use their mobile for price comparisons. That compares to only 55 percent of shoppers who do not use loyalty programs using their mobile device for price comparisons.
The Inreality study also found mobile loyalty programs reaching a rather narrow audience — mainly women (61 percent) and the most budget-squeezed age group, ages 25 to 49 juggling early careers and young kids.
To entice the majority of shoppers to enroll and encourage mobile carrying loyalty members to do more than price check, brands and retailers need to increase the benefits of these programs by catering to specific demographics, Inreality said. They can also offer early access to new merchandise, private showings and additional advantages.
"There is a large opportunity for brands and retailers to rethink loyalty," wrote Inreality. "How can loyalty be better integrated into the shopper experience as more than just another discount outlet? And, should brands look into integrating other functions into loyalty apps, such as, social sharing, etc.?"
- 75 percent Of All Shoppers Are Now Using Mobile In-Store, With 25 percent Actually Making A Purchase – Inreality
- The 2015 Reality of Retail Report (report) – Inreality
- Consumers are more motivated by loyalty programs than ever before – Bond Brand Loyalty
- 2015 Loyalty Report – Bond Brand Loyalty (report) – Bond Brand Loyalty
What opportunities does mobile present for retailers to engage loyalty program members? Why are many mobile loyalty efforts failing to catch on with shoppers?