Retailers fail to meet demand for mobile loyalty schemes

Retailers are failing to meet customers' demands for mobile technology as part of loyalty scheme programmes, according to a YouGov survey.

The poll, commissioned by Steria, shows most of the 1,950 people surveyed (65%) want more personalised loyalty schemes services from retailers, including real-time offers to be sent to mobile devices while shopping.

"The mobile phone is set to be the on-the-go shopper's most indispensable tool," said Heather Barson, Steria UK's retail sector director.

"There is a huge, untapped market for virtual loyalty programmes delivered in a much more personalised fashion that recognises individual shoppers' profiles, including location," added Barson.

Another survey by Monitise show the number of people in the UK managing money on their mobile devices has doubled over two years to nearly 10% of the population. Monitise expects this to increase to over 50% of the UK population in the next few years.

Alastair Lukies, chief executive of Monitise, said: "The driving forces are clear. People want to manage their money more closely, the arrival of the smartphone and the development of 3G networks, which transfer all the information required so quickly, plus the creation of new apps and services by banks and retailers."

However, some retailers are still opting for traditional card-based loyalty programmes.

Clinton Cards is launching a loyalty card scheme later this year as well as a new website in a bid to address a decline in sales. Superdrug introduced its new loyalty card, the Superdrug Beautycard, at the beginning of May 2011.

In a report by Forrester Research, Suresh Vittal, principal analyst at Forrester, said retailers must prepare for emerging technology investments and upgrades as loyalty schemes increase focus on real-time customer offers.

"Social, location-based and mobile technologies stand to transform loyalty by providing intimate access to programme members. At the same time, they pose integration and data aggregation challenges that will require flexibility and investments in the people, process, and technology," said Vittal.

Some retailers are considering new technologies for loyalty schemes. Groupe Aeroplan, which owns the Nectar card loyalty scheme, is considering how it can use NFC technology in the future.

Tesco aims to expand mobile services to become a multi-channel retailer. The retailer is currently trialling an Android-only 'sat-nav' app in a store in Essex, which helps customers locate products.

"We won't be rolling this out to customers in general for a while because we have to think about how useful it's going to be. The system involves a lot of infrastructure installation in the stores so we need to get all kinds of people involved in thinking about the customer experience," said Nick Lansley, head of R&D at Tesco, in a blog post.

Share this:

About Jessica Priston

Ut tellus dolor, dapibus eget, elementum vel, cursus eleifend, elit. Aenean auctor wisi et urna. Aliquam erat volutpat. Duis ac turpis. Integer rutrum ante eu lacus. Vestibulum libero nisl, porta vel, scelerisque eget, malesuada at, neque. Vivamus eget nibh. Etiam cursus leo vel metus. Nulla facilisi. Aenean nec eros.

  • Website
  • Google+
  • Rss
  • Pinterest
  • Instagram
  • LinkedIn
  • Vimeo
  • Youtube
  • Flickr
  • Email

Related News

  • Cashback site Cashkaro now offers restaurant discounts

    India’s e-commerce market looks large and lucrative enough from the outside, but insiders know it is very challenging. In fact, the number of e-commerce sites and businesses is growing so fast here today that the competition is cut-throat. This

  • What is Viscose Material? Advantage and disadvantage of viscose.

    Viscose is a unique form of wood cellulose acetate used in the nnmanufacture of a number of different products. This includes items for nnthe medical industry, though it is perhaps most common as a major nningredient in the production of the fabric r

  • Honda launches new CBR 250R bike
    Honda launches new CBR 250R bike
    July 01, 2014 5:50 am

    New Delhi: Honda Motorcycle & Scooter India (HMSI) launched a new edition of its global sports performance bike CBR 250R priced between Rs 1.56 lakh and Rs 1.86 lakh (ex-showroom Delhi). The 2013 edition CBR 250R is available for sale across a

  • Zara has opened store at Ambience mall, Gurgaon

    Zara, has opened its new store at Ambience mall, Gurgaon. Spread over 28,000 sq.ft. across two floors the store has taken the space earlier occupied by Debenhams. With this Zara now has twelve stores in India. It is present in 86 countries with