Has the internet changed the nature of the way shopping occurs in stores these days? more
Facebook Places, Foursquare and just about every Social Networking seems to be focusing on location these days. But the problem is they all rely on some sort of check-in, whether it be manual check-in by the user or using the latest GPS/Geo-fencing based check-in.
With the recent move by Google to buy AdMob, a mobile ad platform that has been especially popular on the iPhone, for $750 million - it occurs to me that we are about to enter a period of substantial growth in the mobile space, not just for mobile advertising and marketing but for mobile loyalty!
Wikipedia defines loyalty (aka relationship marketing) as a form of marketing that evolved from direct response marketing in which emphasis is placed on building longer term relationships with customers rather than on individual transactions. Relationship marketing involves understanding the customers' needs as they go through their life cycles while emphasizing a broad range of services to existing customers as they need them. Loyalty marketing programs, on the other hand, are designed to increase customer satisfaction and retention through communications-based loyalty and rewards programs.
So what do relationship and loyalty marketing mean to the mobile world? Bottom line, it's about extending your relationship with your consumer and ensuring they receive increasing value from your brand. Loyalty programs are just one opportunity.
We have already seen some pilots launching this year using Mobile Loyalty.
Starbucks is running a loyalty program based on 2D bar-code coupons deployed via SMS. The coffee giant tapped digital technology provider Codilink, which specializes in mobile services helping companies to offer loyalty programs to their clients. The campaign is currently running in Guadalajara and San Luis Potosi, Mexico, but based on the 60 percent mobile coupon redemption rate, it is likely to be expanded.
IKEA has launched a mobile loyalty program to build a database of consumers interested in receiving discounts from the home furnishings retailer. It is a "text-to-enter" type loyalty program and it is meant for IKEA to start a dialogue with interested consumers. BCode is powering the texted discounts.
Another cool example of Mobile Loyalty is from Sprint Nextel and the Luxor Hotel in Las Vegas for a soon-too-launch campaign. When a guest makes a reservation at the Luxor, they were asked if they wanted to opt-in to receive automatic check-in when they arrived in Las Vegas. Then, using location services, the consumer received a text message when they arrived in the Las Vegas city limits prompting them for automatic check-in via their mobile device. For those who haven't traveled to Las Vegas, the queues for check-in are often enormous. This new service enabled the consumer to bypass the check-in lines when they arrived at the hotel. The Luxor immediately began to establish a stronger relationship and tie with its consumers.
As you can see these are 3 very different examples of how to conduct a Mobile Loyalty campaign and this is only the beginning. What I feel is needed is a standard platform to conduct Mobile Loyalty initiatives. What's your viewpoint - we would love to hear from you!
