[ TECHNOLOGY ]
at their phones first thing in the morning, and
54% check their phones more than three times
an hour. It’s no surprise then that mobile devices
have become integral to loyalty and rewards
programmes. But what are the potential benefits
of this for members of programmes?
Convenience, ease of use, and access to
relevant, easily redeemable rewards are
essential in maintaining customer participation
in loyalty programmes, says Michael Zahariev,
who is the Cape Town-based co-founder of mobile
app ReMe. These, he says, are also key potential
customer benefits of using mobile technology for
loyalty marketing.
Launched late last year, ReMe is a locally
developed universal loyalty app, which is
designed to replace wallet-congesting loyalty
cards and enable customers to activate, interact
and keep track of their loyalty programmes –
and find new ones – using one app on their
mobile device.
While customers appreciate the opportunity
of being rewarded for their loyalty, they do not
want to have to carry more cards. Their mobiles
though, are always on hand. But, while an app
is a solution, it cannot be just any one.
the analytics going on in the background. So
the phone becomes payment and reward in a
single transaction.”
Indeed, mobile is increasingly becoming an
integral part of loyalty campaigns worldwide.
A Canadian report by Bond Brand Loyalty asserts
that strategically marketers cannot afford to
ignore mobile – it is at once a combination of a
communication medium, a unique identifier,
and a way to pay. In South Africa, for a vast number
of people, smartphones are their only access to
the internet.
“Apple and Google are already on this road,” says
De Coning. “Look at Apple Pay, for example: you
pay with your phone and they provide an offer
unique to the client, creating brand stickiness in
the process. And what this means is that you can
have targeted advertising down to the level of the
individual. Brands, banks, consumers and retailers
can interact through deep big-data analytics.”
POTENTIAL BENEFITS
According to a 2015 survey by phone and tablet
repair specialist iFix, 56% of South Africans look
IT MAKES SENSE,
TOO, FOR THE
TECHNOLOGY TO
ALLOW BUSINESSES
TO COMMUNICATE
EFFECTIVELY WITH
CUSTOMERS.
“The world is moving away from wallets
clogged with cards towards phones clogged with
apps,” says Zahariev. “We’re essentially replacing
one problem with a similar one. With ReMe, we
leapfrog this evolutionary step by eliminating
the need for multiple loyalty apps on one phone
with a universal digital loyalty network.
“The idea is that ultimately all you will need
is one app on your phone to sign up, track and
redeem rewards on all of the loyalty programmes
you choose to engage with.”
MOBILE PHONE
UPTAKE IN SOUTH
AFRICA
Kleiner Perkins Caufield and Byers’
“Internet Trends 2015” presentation at the
2015 Code Conference showed that more
than half of South Africa’s internet traffic
comes from mobile phones. The company
found that 57% of South Africa’s traffic
comes from mobile devices, an unusually
high number for a developing country.
The presentation also showed that there
were 23 million smartphone
users in South Africa, or
47% of the population.
Source:
mybroadband.co.za
The key, says Zahariev, is to
make the customer experience
as seamless as possible. More than
ever in the digital age, people want instant response
and gratification. Loyalty programmes need to
be supported by technology that is user-friendly,
instructive and intuitive.
It makes sense, too, for the technology to allow
businesses to communicate effectively with
customers. Mobile seems to be the obvious way
to achieve that seamless integration – and that
includes adding social media into the mix for
purposes other than customer complaints.
“Social media is powerful because it has a
personal touch. And some banks are looking at a
‘pay by Facebook account’ option now – leveraging
that massive network that people are really
attached to. It’s a part of their mobile world,”
says De Coning.
“There’s likely to be a kind of app that will
interact with whoever you bank with, and it’ll
have a whole lot of new options – pay by mobile,
receive special offers, purchase things in the app,
or on Facebook, and so on.
“It’s a broad conversation, but mobile devices
open up huge opportunities, because they’re
extremely powerful.” ■
INSTANT GRATIFICATION
One of the key advantages of mobile, says Ruan Geyser, MD of TuYu, is that it helps facilitate instant
gratification, which is key to driving the success of modern-day rewards and loyalty programmes.
TuYu’s platform sends rewards directly to mobile phones. It’s like a mobile wallet – cash is downloaded
onto a mobile phone. By reducing the time it takes participants to access rewards, programme owners
are more likely to affirm behaviour and encourage people to repeat it, he says.
R E WA R D S & L O YA LT Y S A
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