Loyalty Systems
Below: Moonsoon sales staff completing transactions with the use of the smart phone loyalty app by Ikano.
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Consumers don’t want to be bombarded by untailored offers on their mobile.
consumers to trust such an open source of data. In a recent survey, sponsored by The Logic Group, 1010 consumers between the ages of 16 and 75 were asked about mobile and retail payment systems. The research was carried out by Ipsos MORI and found that the biggest problem retailers face when adopting a mobile service is that only 30 per cent of British consumers trust major retailers to keep their data secure and only 33 per cent would be happy to house their loyalty cards on their mobile phones. Jon Worley, Director of Customer
Interactions at The Logic Group observed, “Retailers and merchants are faced with a chicken and egg situation when it comes to implementing mobile services as part of their multichannel customer interaction strategy. Consumers are reluctant about the safety of their data and they also don’t want to be bombarded by untailored offers on their mobile. Retailers and merchants are keen to find the sweet spot for mobile customer interaction to boost their bottom line.” Personally the idea of getting
personalised offers and vouchers direct to my phone is welcome idea. I am not very good with bits of paper and on the rare occasion my paper vouchers make it as far as the store, I get to the checkout only to find they have expired. To have a system
that would organise this for me and even prompt me to use them is definitely something I would utilise and would make me more likely to engage with the brand. Retailers do however need to remember
that ‘less is more’ and direct offers accordingly, not just bombard us with anything and everything. I think that we will quickly see the use of
smart phones in loyalty systems increase as the technology can now offer retailers such a valuable insight in to customer behaviour. I think in time consumer trust will grow and we will see more and more people moving towards housing things on their smart phone, until then retailers need to remember to keep an option open for those who can’t or won’t be persuaded.
Written by Ruth Hales
Contact Ikano T: +44 (0) 115 850 3000 W:
www.ikano.net
Communisis T: +44 (0) 20 7382 8950 W:
www.communisis.com
The Logic Group T: +44 (0)1252 776700 W:
www.thelogic
group.com
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