Customer Loyalty Solutions – The Next Step in Mobile Payments?

“20% of the customer segment is responsible for driving 80% of the retail enterprise’s revenues.”

“Marketers need to spend 5-6 times more in acquiring a new customer.”

“Repeat customers spend more.”

If you or your company ever had to deal with and connect directly with consumers, chances are you must have come across statistics and statements like the ones above in numerous instances. However, if you have tried implementing any form of customer loyalty solutions, you must have also realized that achieving true consumer loyalty requires deliberate planning, strategic alignment, technical and financial commitments. In addition, the current generation of consumers is always on the move and has instant access to information via their smartphones and other mobile devices. Not only information, the mobile devices have now either surpassed or equaled their desktop counterparts in segments like mobile commerce, digital media view, searches, etc.

The utility of smartphones and their applications is not lost on the neither the device manufacturers, app makers nor the users. And, the result is the development of innovative applications that aim to make life easier for the users/ consumers. The one segment that is being disrupted is the adoption of multiple mobile wallets, and right now, Apple Pay seems to be leading the charge from the front. An increasing number of users are adopting these mobile wallets to make their payments, leading to the emergence of new challenges for the providers of mobile wallets. These challenges involve tapping into the merchant’s customer loyalty solutions and integrating them to the mobile wallets to facilitate consumers is managing their rewards programs right from their payments platform.

Individual merchants will probably continue to have their own loyalty program apps along with mobile wallets in a bid to cut costs and retain their control over consumer data, third-party platforms like the Apple Pay could create opportunities to reach wider audiences. As the horizon for retailers expand both online and offline, each offering their own set of loyalty solutions, managing standalone apps for each will be cumbersome. It will only be prudent to offer solutions that integrate into and allow the management of multiple programs from one single platform.

Integrating a rewards program right into the mobile wallet does lend a competitive edge to the business, apart from empowering the user to manage all their cards and rewards from one single application. However, there are some shortcomings in integrating such a tightly linked mobile payments and rewards programs to some third-party applications. The reason being most retail businesses still continue and prefer to have their own set of customer loyalty solutions and rewards applications.

Despite the availability of the technological architecture to facilitate mobile payments, the same is lacking when it comes to the integration of a customer loyalty Solutions. A web application development company can be consulted by the retail business for gaining deeper insights into the development or integrations processes associated with loyalty programs and mobile wallets.

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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