Those loyalty cards that we use to collect waiting to earn some points in order to get something for free for a discount are going mobile which I think can be a fantastic idea because those cards used to get either lost or forgotten at home. So instead the stores keeping track on a paper the visits of the customers; they will store existing loyalty cards on scan able barcodes in the cell-phones which some companies are already providing to retailers. “Loopt is one of several start-ups — including Foursquare, Shopkick and Gowalla — that are experimenting with ways to use cell phones to bridge the digital and physical worlds and turn the tasks of everyday life, like buying coffee and running errands, into a game” Miller.
No one in advertising has ever been able to figure out how to do “one-to-one, real-time marketing,” said Drew Sievers, a former advertising executive who is now co-founder and chief executive of MFoundry. “The mobile phone is where that will actually probably happen. It’s the only thing connected and always with you.” I think this is totally correct this is the only device that is always with us because we carry our cell phones anywhere we go. Also, this could be a fantastic way for the retailers to obtain more information about their consumer even though some people are reluctant and think that sharing their information with some of the retailers is not too safe. Now with the smart-phones and a new application created every day, this should not be new for us, and I think this is a great marketing tool to track loyal consumers so they can get their rewards.
http://www.nytimes.com/2010/06/01/technology/01loopt.html?ref=technology
This article is quite interesting and shows how technology is evolving as the minutes past by. The cellphone now can do almost anything and businesses are taking advantage of this fact. Soon enough these cellphones, "smart phones", may be able to clean our houses and cook for us. (I wish! Lol!)
ReplyDeleteThis new application I believe that was initially brought about to encourage brand loyalty is now being diversified from simple food and clothing products into services at universities. Being a mobile app brings great benefits to both customers and businesses. For customers, it reminds you of the free goods or services you can obtain for being loyal to a company. For example, I always bought sandwiches at Subway and had them clip my customer appreciation card to get a free sandwich after 10 purchases. But I would sometimes forget my appreciation card in another bag or at home and miss out on the deal when I purchased at Subway. This new mobile app would help one to track your visits and purchases and reap the rewards.
For the businesses, this obviously brings brand loyalty, it encourages existing customers to keep purchasing in order to obtain the benfits. For instance, I would always go to Subway instead of their competitors like Quiznos, because I knew I had a free sandwich coming in the future :). According to Cyriac Roeding, Shopkick’s co-founder and chief executive, “You have to find new ways to keep your customers engaged and bring them back, because you know there are apps that drive them out of the store instead of into it.”
The evolution of M-commerce is steadily increasing where both businesses and consumers can take advantage of it. The only problem I have with this evolution is security issues because some of these apps will require customers publicly sharing their locations.
i do agree that it is a great tool for marketers to access more information, and study consumer behavior in depth. But this tool will also bring up more issues about consumers privacy. It is also worrying that people are dependent and attached to cellphones. But i guess for people who really care about collecting point to get discounts or some prize, it would be helpful not to carry a 1000 card. Yeah, but then they might go crazy if they lose their phone :)
ReplyDeleteYeah, this is really a nice development but with new development comes its loopholes. I agree with Ola, will the privacy of people be jeopardized. Using the cell phones/ smart phones with lots of personal information such as phone numbers, emails, pictures, videos and with the scanning of barcodes from phones can lead to severe lawsuits with privacy and phone damage. But this will definitely be more convinient and stress free.
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