Social and mobile channels keep things relevant
South Africans love smartphones almost as much as they love loyalty programmes. Or is it the other way around? According to Nielsen’s most recent Global Retail Loyalty Survey, 84% of South Africans are members of loyalty programmes, while Statista estimates there will be 16.1-million smartphone users in SA by the end of this year.
We love them both, but that’s where the parallel ends. While most of us seldom leave home without our cellphones, what South Africans (and, presumably, most other nationals) would not mind leaving at home are the wads of loyalty cards that we need to participate in said programmes. It makes sense then: rewards programmes need to go digital so that participants can discard cards and use the cellphones they carry anyway to access and administer their involvement in programmes instead. It’s an obvious match.
eBucks Rewards CEO Johan Moolman agrees: “Tapping into the power of mobile will supercharge rewards programmes and allow businesses to stay relevant to their members. Why? Because a cellphone is the single device you have with you at all times.”
Ruan Geyser, MD of mobile rewards platform TuYu, concurs, adding that going mobile is essential if you want to elicit effective responses to loyalty programmes from millennials — those powerful consumers born from 1977-95.
“Social and mobile channels should be the heroes of loyalty programmes targeting millennials,” he says. “This sector wants interactive programmes that follow participants’ individual buying patterns, needs and products. Programme owners need to keep millennials engaged and interested. Marketers also need to utilise the data being generated to the best of their ability to deliver relevant discounts and rewards.”
Indeed, it’s not only about consolidation and ensuring consumers have fewer items to lug around and keep track of; the digitalisation of rewards programmes could simplify the management thereof for participants. If members have a tough time understanding and managing a programme, they are discouraged and less likely to engage with the programme, says Moolman.
“Enhanced by smartphone capabilities, simplicity and helping members ‘hack’ the system to achieve maximum value through higher earnings or faster progression through rewards levels are going to be key to running a standout programme,” he says.
But it’s not only participants who will benefit from rewards programmes going mobile. Programme owners will have the advantage of being able to differentiate themselves from other initiatives. They will also be able to broaden the scope and reach of their programmes, and reduce the cost of communicating with participants while improving the levels of personalisation.
“Herein lies an opportunity to amaze and delight members with spot-on personalised products, services and even discounted items, allowing members to choose what is relevant to them,” says Moolman. “You could also present the data to members so they can play around with it and understand what actions they need to undertake to help them earn more rewards.
“This will allow members to make more informed decisions based on realistic results about their product purchasing, banking or lifestyle.”
Another useful feature of using smartphones for rewards programmes that it provides access to geo-location. Once members opt in, based on their location, they can be notified through an app when they are near specific partners/retailers who offer discounts and so on.
“Rewards programmes are likely to become increasingly relevant to members as they start making a real impact in their lives. By keeping things simple, increasing relevance and using technology such as cellphones, programme owners will be able to add greater value to their initiatives,” he says.
REWARDS PROGRAMMES NEED TO GO DIGITAL SO THAT PARTICIPANTS CAN DISCARD CARDS