Short-Term Approach Threatens Mobile Loyalty Revenues, says 2ergo

Short-term mobile marketing tactics are narrowing long-term strategies for customer loyalty, according to research from 2ergo. A YouGov survey commissioned by the mobile solutions company found that 56 per cent of consumers would use a personalised loyalty scheme on their mobile. 21 per cent of respondents said they would spend more if a brand had a proactive scheme which provided relevant and timely offers.

However, only a handful of brands are implementing mobile loyalty schemes; 6 per cent of high street retailers currently have a mobile-based loyalty scheme, the study found. In the report, entitled Mobile Loyalty: Are marketers missing the point? 2ergo warns that simply paying lip service to mobile strategies could seriously affect long term profitability and customer engagement.

“We know that smartphones are changing the way people interact with brands. For example, in retail mobile is used to provide access to store directions, in-store product reviews and self service mCommerce, which delivers an enhanced customer service,” says Ariya Priyasantha, director of loyalty at 2ergo. “Just discounting at this stage does a disservice to both brand and customer. Using mobile as the platform for an integrated, intelligence-based loyalty scheme means marketers can target them effectively, either at home, or in real-time when they are within a store, restaurant, or gym, promoting relevant products or rewards based on their purchasing history.”

The full report can be downloaded here.