|Scooped by Joachim Scholz, PhD|
Insight by James Donelly:
Loyalty programs are structured marketing efforts intended to reward, and subsequently encourage consumer buying behavior. Hemsey clearly identifies the marketing reach of the mobile network, with more than 50% adoption rate in 13 major industrialized countries. The ad market was expected to expand 3.5% in 2013 and 5.1% and 5.8% in 2014-15, with much of this growth being driven by digital innovations such as mobile marketing.
Considering the consumer intimacy with smartphones and tablets (89% use their device at home and 79% in the bedroom), the potential of mobile marketing is tremendous. Further the “era of pervasive interactivity” with 60% of Gen Y’ers (23-31) and Gen Z’ers (18-22) now considered as “Always-Addressable Customers” (AAC), essentially translating as constant connectivity to mobile devices.
A definite concern for those corporations using mobile marketing is that of consumer overload and app apathy – approximately 26% of apps are never used after the initial download. Therefore, a key factor is the integration of the digital world to the real world in order to establish a higher value relationship between the business and customers. Hemsey refers to this as “breaking through the silos” and combining loyalty programs into an omnichannel loyalty approach, integrating loyalty programs across multiple platforms and channels. At the time of this article in 2012, 1 in 4 consumers preferred mobile access for loyalty programs in an always-accessible channel.
Recommendations to engage this AAC segment:
Keep points in play. Basic loyalty is by points and gives instant gratification.
Excellence in experience. Ensure quality across full spectrum.
Game for Gaming Sake. Use game mechanics in non-game applications.
Status of Tiers. Earning rewards/tiers is central to culture, especially for those under 35.