Many of us have a loyalty card for a favourite store or coffee shop, but a growing number of brands are now using mobile phones as a way to hold on to customers.
Phone companies who operate in a fiercely competitive market have been doing so for some time and, given their mobile marketing expertise, that is hardly surprising. Orange’s pioneering Orange Wednesdays two-for-one cinema ticket promotion has proved hugely successful, and rival mobile phone operator O2 has also launched a loyalty scheme, offering users the chance to buy tickets to concerts and music festivals before they go on general sale. Those programmes were initially designed to reduce “churn rates” in an industry where customers were notoriously promiscuous, swapping providers on the basis of cost, but now that prices have come down across the board, they are also being used to build brand awareness.
In the UK, 73% of people are members of at least one loyalty scheme, according to research carried out by Analysys Mason for Buongiorno, a global provider of mobile internet, loyalty and marketing solutions. Many other industries are now following the mobile phone companies’ example by using mobiles to attract, retain and sometimes even to regain customers. Gambling company Ladbrokes has launched its “odds on” mobile loyalty scheme, which offers customers who haven’t placed a bet for some time a free or reduced-price bet. It also regularly contacts others who frequently gamble on certain events or teams when a specific event is coming up, so for instance football fans who have often backed Manchester United might have received offers ahead of last month’s Champions League final, which the team contested.
As customers can be won through targeted advertising and marketing campaigns aimed at a particular demographic, mobile phone companies have an inherent advantage at this early stage. This is partly because of the amount of information held about their customers. Experts point out that the click through rate [from an online ad] is three times higher on a mobile phone than it is on a PC or laptop.
But it is after those customers are on board that mobile marketing can come in to its own through effective customer relationship management. The growth of mobile commerce means purchases can often be tracked, and customers can be sent offers they are more likely to respond to favourably or encouraged to “upscale” to other product categories. Timely offers – like a sporting bet on an upcoming event – can also be targeted at the right people.
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