As Harvey Nichols announced it is eschewing the traditional loyalty card in favour of a mobile app, Marketing Week took a closer look at loyalty programmes and how brands embrace mobile and digital.
The article highlights that ‘more brands should follow suit as consumers look for more personalised and rewarding loyalty strategies’ and references Capgemini Consulting’s recent research into loyalty. The study found that brands are failing when it comes to living up to consumers’ expectations. On social media, 89% of opinions about loyalty are negative, while just 11% of schemes personalise rewards in a way that customers expect.
Steve Hewett, head of retail customer engagement and loyalty at Capgemini, commented in the Marketing Week article: “If customers give a brand their data they expect them to do something with it. Brands are missing out on engaging and rewarding customers.”
He also highlighted legacy issues that can inhibit brands’ ability to put digital schemes in place, as often significant investments into new PoS and Wi-Fi in stores are required.
However, the article also highlights that while we’re at ‘an inflection point moving from the old school transactional paper-based era to one about personalised engagement and adapting for digital’, it’s not the end of card-based schemes as they still generate a good return on investment.
You can read the full article on the Marketing Week website.