Mobile Loyalty Schemes Are A Must For Retailers
The retail industry is extremely dynamic and is constantly in the process of evolution. This has been further impacted through the introduction of technology, especially the Internet. The advent of smart phones have become one of the most popular tools of e-commerce in this mobile world, with a large segment of customers preferring to use them to shop on-line while on the move.
It has dramatically changed consumer interaction with retailers. All of this was made possible with the development of retail mobile apps, which have popularised the on-line shopping experience for a large segment of customers. It now plays a vital role in generating revenue for retailers.
With Google now rating mobile friendly websites higher than others, it is imperative for retailers to ensure that their sites are mobile friendly.
Besides the traditional mobile retail experiences, there is a steady influx in new technology that allows customers to develop and maintain a more interactive and personalised relationship with retailers like never before. With more on-line businesses investing in a variety of mobile applications, the retail market is going to flourish substantially in the future. In fact as per on-line consumer spending studies done in the UK retail sector in 2014, there was a hike of 14% from the previous year, at more than £100 billion. Of these, mobile devices contribute close to a quarter of the retail on-line sales in the UK market. A study done by Barclay’s indicates that consumers in the UK will spend close to £53.6 billion annually, through the use of tablets and smart phones by 2024. Retailers need to make the most of this opportunity and find new ways to stay ahead of the competition.
Some interesting statistics revealed by a leading mobile app developer in the UK are as follows:
- It was found that around 80% of on-line shoppers want more loyalty schemes introduced for mobiles shopping.
- Of the respondents interviewed 51 % said they own more than a single loyalty card and 46% of them said they frequently collect and spend points from reward cards.
- Of these just 20% of smart phone users in the UK interact with retail loyalty schemes on their mobile. 29% of respondents also stated they would gladly share their location with a retail app company, if they received loyalty points and other incentives from the retailer.
- A study of a thousand respondents in the UK further revealed that around 47% of them favour using a mobile app over carrying a loyalty card.
While loyalty schemes are an attractive method of adding value for regular customers and useful in increasing brand loyalty, just using traditional loyalty cards will not suffice in the future. With technology rapidly proliferating the on-line retail sector and smart phones playing a critical role in on-line marketing, it is time for businesses to offer mobile apps that give instant rewards to loyal clientèle. It is time for mobile app loyalty schemes to figure more prominently in on-line retail marketing for the new generation of smart phone shoppers.