Mobile Loyalty Programs

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Mobilize your loyaltyprogram with mobile wallet

!!@DevelopmentNow@AdamLorts

Empowered consumers demand more control

Your customers are “always on”

Your customers have more choices and can switch on demand

The role of mobile in loyalty cannot beunderstated.

Quick service restaurant

Department store

Entertainment

Gas station

Supermarket/Grocery store

Pharmacy/Drug store

Bank/credit card

Specialty retail

Airline/frequent flyer

Shopper club

Base: US Online Adults 18+ (Online Weekly or More) who belong to loyalty programsSource: North American Technographics Customer Life Cycle Survey, Q2 2013

Over two-thirds of consumers belong to at least oneloyalty program

“Which of the following types of customer loyalty programs do you belong to?”68%

On average,

consumers belongto about 8 loyalty

programs.

Base: 98 loyalty program marketers; Source: Q3 2013 Global LoyaltyProgram Service Providers Forrester Wave™ Customer Online Survey

Organizations are prioritizing their loyalty programs

Loyalty is a key strategicimperative

Budget support is strong

“How has your loyalty budget changedyear over year in 2013?”

Increase Stay the same

Decrease

Base: 50 loyalty program marketers; Source: Q3 2012North America Loyalty Benchmark Online Survey

I regularly participatein most of the loyalty

programs I join59%

I regularly participatein just a few of theloyalty programs I

join36%

Consumers participate in the programs they join

"Which of the following statements best describes your level of involvement with customer

loyalty programs you join?"

I rarely, if ever,

participate in the

loyalty programs I

I belong to too many loyalty programs

Loyalty programs influence what I buy

Loyalty programs influence how much I spend

Loyalty programs influence where I make purchases

Loyalty programs save me money

Consumers view programs as a way to save

“How much do you agree with the following statements regarding customer loyalty programs?”

(4 and 5 responses on a scale of 1 [Do not agree at all] to 5 [Agree completely] shown)

43%48%

When I find a brand I like, I stick to it

A brand's reputation is important to me

I prefer to buy brands that I have owned previously

Price is more important to me than brand names

I would pay more for products or services that save metime and hassles

I often tell my friends and family about new brands,

products, or services that I have discovered

I would pay more for brands or products consistent withan image I like

Base: 3,266 US online adults (18+) who belong to loyalty programs

Source: North American Technographics Customer Life Cycle Survey, Q2 2013

Active program members are willing to pay and share

“How much do you agree with the following statements?”

(4 and 5 responses on a scale of 1 [Do not agree at all] to 5 [Agree completely] shown)

I regularly participate in most of the loyalty programs I join

I rarely, if ever, participate in the loyalty programs I join

Source: North American Technographics Customer Life Cycle Survey, Q2 2013

50% of loyalty program members wantmobile gift cards and reward

certificates.

Consumers have an appetite for mobile rewards

44% of consumers are interested injoining programs that offer mobile

coupons.

It’s time to seize the mobile moment.

35Why mobilize your loyalty program?!

For the Consumer! For the Marketer!

Convenience

Timely reminders (expiring points)

Location triggers

Great way to engage loyalty members

Ability to update points real-time

Low cost location-based marketing

First, mobile boosts customer understanding

› Mobile helps marketers follow

program members across thecustomer lifecycle

› Mobile channels are highly

trackable

› Mobile interactions create new

data streams

Second, mobile streamlines loyalty program utility

Then Now

Mobile simplifies the member experience, andgives members more control over when, where,

and how they participate.

Third, mobile increases the relevance of loyalty programs

› Contextual insights help

marketers deliver morepersonalized marketing content

› But it goes beyond creating a

mobile version of the loyalty cardand offers.

› Mobile also creates new

opportunities for engagement thatgo beyond typical programinteractions

Mobile Landscape

29Mobile landscape overview!

Mobilemarketing !

Mobileadvertising!

Mobile !experiences!

Mobileservice!

displayadsrich

mediaads

mobile webexperiences

m-commerce Mobilemediabuys

mobile wallet!marketing!

QRcodes

mobilealerts

mobiledatabase

loyaltyprogramactivation

servicealerts

targeting &segmentation

pushnotification

payments

Programmatic(RTB)

mobile

serviceapps

mobile!coupons!

30The “non-payment” mobile wallet marketing movement!

Apple launched Passbook inSeptember 2012

The new Google Wallet app launchedin 2013 for iPhone & Android

Rewardscertificates

Offers andcoupons

Loyalty

33Mobile wallet marketing is making a big impact!

Are people using it?!

On average, 70% ofconsumers will save aPassbook offer to theirphone when presentedwith a pass.

Does wallet liftemail conversion?!

When email is activated

with Mobile Wallet – 8%increase in conversion !

Does it work?!

64% higher conversion

rate over static mobileweb coupons

26% increase in AOV

over static mobile weboffers

Keep RewardBalance above the

fold for easy viewing

Dedicate label value toshowcase loyalty

program join date

Feature unique

loyalty ID beneath

barcode

Prompt users todownload your app

Deliver lock screen

notifications to

consumers

Include information

like:•  Location of

favorite store•  Phone number•  Store hoursTerms and conditions

located beneath allcompany information

Apple’s Passbook – Mobile Loyalty Card!

Personalize with name, points, and even colors for loyalty tiers

Include retailername and offer!

Make sure logo is

sized appropriately!

Assign a uniquebarcode ID to track

redemption!

Include storeinformation andhours!

Put important

information likeexclusive offers in the“Messages” field!

Place information

about the loyalty

program at the end!

Google Wallet – Mobile Loyalty Card!

1:1 personal messaging to loyalty members with offers, custom messages & more

40Mobilize reward certificates too…!

Deliver time-sensitive reward certificates and send special offers to members

Google Wallet Apple’s Passbook

44Google Wallet and Passbook are location-aware solutions!

loyalty programand available rewards

Raise awareness about Drive engagementwith real-time pointsnotifications

Drive foot traffic andenable easyredemption at POS

Offset expensive callcenter calls byproviding timely info

How mobile wallet can strengthen your loyalty program

AWARENESS! ENGAGEMENT! TRANSACTION! SERVICE!

48Think holistically about your mobile wallet marketing strategy !

1. Create!

2. Distribute!

3. Manage!4. Measure!

5. Optimize!

Mobile Tips

Select a platform that makes mobile wallet management easy! 52

Mobile walletmetrics

Single “smartlink”

ManagePassbook &

Google Wallet inone interface

Managelocations (geoor iBeacon IDs)

53Make sure to build solutions for both iPhone and Android users !

Google Wallet Apple Passbook

544. Identify KPIs and actively update and monitor campaigns !