Membership Cards was the foundation of loyalty marketing. However, it is outdated. ‘Mobile Apps’ lead it to a new era. Many aware of the rapid growth of mobile apps development, therefore, expand their business with member mobile apps. Some insist on the membership cards as it is a lower cost choice. It’s not a wise move though. We present you 6 Reasons why you should start Mobile Apps asap.
Easy and Convenient
Research found 44% people have to carry 2-4 membership cards with them anywhere. Carrying multiple plastic cards in wallet and pockets can be very messy. Every time they purchase they have to find and then pull them out. Carrying multiple cards pain consumers the most. 43% says having a load of cards is the biggest frustrations. By providing mobile apps, you can improve the shopping experiences. Wallets and pockets suddenly get their space back. Plus mobile apps will not be lost as easy as cards.
Customer Engagement with Mobile Apps
A membership card cannot engage and approach customers. They have no incentives and rewards to motivate customers to re-visit your business. Membership cards are easy to be forgotten and lost. Meaning it is not a reliable tool to keep your customers loyal.
With a mobile app installed on your customer’s phone, your brand will be presented frequently which serves as a constant reminder of your brand.
Membership cards provide zero communication with customers. The only viewable content it has is the limited text printed on the cards. It cannot establish any long-term relationship with your customers.
Mobile apps allow unique, custom and personalized engagements with your targeted customers. You can connect with them at the chosen time. For example, you can provide limited time promotion for festivals. With the push notification, users are easily informed about special promotions and discounts. Birthday greeting and other incentives are available, which better encourage customers to re-visit again.
Mobile apps provide fruitful interaction, like gift cards, lotteries, special offers and etc. You can collect customer feedback and data following each purchase. You can better meet the customer’s expectation and ensure the usability of your marketing campaign.
Visual and Emotional Appeal
Membership cards lack visual and emotional appeal as the earned points and rewards are not viewable. Member apps can display colorful images and videos. It better introduces your hero products. The emotional appeal motivates users to keep an eye on your promotions. Moreover, it helps nurture the more powerful connection between customers and your brand.
For membership cards, it’s much more difficult to collect and analyze data on your customers. It means you cannot send personalized offers to your clients and create highly targeted marketing campaigns.
With a mobile app, you can easily collect valuable data to get insights into demographics, behavior, and preferences. You can analyze the data to capture the customers’ profile. It helps in increasing the success of your marketing campaign.
Overall, consumers are more demanding than ever, they need fast and simple shopping experiences, personalized engagement and promotions. Most consumers prefer mobile apps than membership cards. As a result, membership cards are outdated and soon become useless. Some concerns the cost of mobile apps, it actually becomes more cost-effective due to the popularization of mobile technology. 2018 has come to an end and it’s better to start late than never. If you don’t have a mobile app with Loyalty Management System, starting one in 2019 will be a good way to start.
The future of retail and service industry bound to CRM Big Data. The profit is promising. However, it requires a custom and automatic CRM system to carry out marketing activities.
The Taiwan Non-Store Retailer Association held a “Non-Store Industry” forum. The former executive Dean Zhang Shanzheng said that the future of the retail industry rely on big data and artificial intelligence. CRM Big data understand the preferences and interests of customers, which is the key to success.
Let me share the experience of Amazon.
One-Click Buying, First Step of Managing Big Data
One-click buying is the technique of allowing customers to make purchases with the previously saved payment information. It does not require the shopping cart software. Users have no need to input billing information such as address every time. Instead, users can purchase with the predefined credit card and delivery address. This is quite simple and common these days, but the concept was not popular back in 20 centuries.
The technique was introduced in late 20 centuries. Amazon applied for the patent of one-click buying in 1999. Apple purchased the license from Amazon in 2006. The patent was finally expired in 2017.
Amazon.com is guidance in collecting, storing, processing and analyzing personal information from every customer. The One-Click Buying allows Amazon saving a large amount of customer’s data and purchase history. They analyze the data to capture the customers’ profile.
They use predictive CRM system for targeted marketing to increase customer satisfaction and customer loyalty. Big Data is being adopted in the CRM system, which helps Amazon evolve into a leader among online retail stores.
The Features of CRM System
Amazon developed a CRM system which included a personalized recommendation system. The system analyses purchase history, wish list, reviewed, rated list and search history. The purpose of the system is to recommend other products, which mostly related or interested the customers.
For example, if you add a DVD movie to your online shopping cart, other DVD movies will also be recommended. This feature generates 35% of the company’s sales annually.
Amazon added a new module to their CRM system. Amazon’s anticipatory shipping model use big data for predicting customer’s most interesting products. It predicts the revisit time and when the customers might need the products. Those products delivered to a local distribution center and warehouse, therefore, they would be ready for shipping. It increases Amazon’s profit while decreasing its delivery time.
Price Optimization Module
The module monitors user’s activity on websites, competitors’ pricing, order history, expected profit margin and etc. Prices are set according to the above factors. Prices change every 10 minutes as big data is updated and analyzed. As a result, Amazon offers the best competing discounts on their hero products.
Remember, One-Click Buying and the CRM Big Data concept introduced in the ’90s. It is 2018 now and if you did not invest in the CRM system, you should better get on with it ASAP!