Are Mobile Loyalty Apps The End Of Plastic Loyalty Cards?

Mobile is increasingly taking center stage when brands are looking at creating and growing customer loyalty. With upmarket retailers such as Harvey Nichols launching exclusive mobile app loyalty programs, it is no surprise that other large retailers such as Boots, Costa Coffee and Tesco are also looking at mobile technology to increase customer loyalty. This reinforces the huge growth trajectory of digital and mobile solutions at the expense of traditional plastic cards.

Research carried out by a Harvey Nichols uncovered that 80% of respondents preferred a mobile app over plastic cards. The main attraction and benefit for customers was that with a mobile app, they ‘do not have to carry an extra plastic card in their wallet’.

With the market always looking to adopt the path of least resistance, a very interesting discussion has opened up as to the future of customer loyalty. Up to now the issue has been customer adoption of loyalty programs. Although businesses are enjoying a higher level of customer involvement with mobile loyalty apps at a lesser cost, not everyone is convinced that an app-only approach is the answer.

For example, an app launched by Boots allows their customers to receive offers linked to the Advantage Card rewards scheme on their phone, whilst Costa Coffee released an app last September for its Coffee Club loyalty programme. Both brands are giving the customer the option to engage with their loyalty programs on a mobile app as well as a plastic loyalty card, essentially attempting to appeal to the widest possible audience.

Industry analysts are also expecting Tesco to improve the digital functionality of the Tesco Clubcard and just over 2 weeks ago, Marks and Spencer launched its new digital loyalty scheme called ‘Sparks’. Incidentally Marks and Spencer are in the news today for having ‘technical’ difficulties with online customer registrations.

Although not everyone believes that mobile apps will completely kill plastic loyalty cards, the case for adopting this new technology is very attractive for businesses. Also with accessible technology, mobile app loyalty programs are not exclusive to only large players and retailers. Small businesses can take advantage of the mobile revolution too. Eazi-Apps offers a variety of mobile app loyalty programs giving small businesses the opportunity to level the playing field with clever and effective loyalty solutions.

The push notification service offered by Eazi-Apps allows small businesses to reach out to their loyal customers base with offers and deals that pop up on their customers mobile devices. They can even target users based on their location and trigger offers based on proximity. The landscape is changing and businesses are now waking up to the huge opportunity available to them.