mObile Loyalty Apps Called Into Question

mobile loyalty app programs sms mobile marketing

With the slew of mObile loyalty Apps on the market today…there’s gonna be some duds.  Now, I’m not trying to stifle innovation or creativity here, but let’s be honest, there are some major problems with this space.  There have been too many to name here but recently Google announced that they were closing Punch’d, a mObile phone loyalty app service.  Many suspect that the acquisition of Punch’d was a stepping stone for Google to integrate it with their Google Wallet service, & I think they are right.  The problem with most loyalty apps is # 1:  privacy concerns.  How long companies can track you, & for what activities is in constant debate.  Also, aren’t we all tired of getting bombarded by someone’s Facebook feed of what songs they listened to, starred, & created a playlist for on Spotify?  There are also other privacy issues that need to be addressed.  Cyber criminals have been caught releasing their own versions of apps & attempting to steal all your information.  Not to mention the fact that many loyalty apps are a major hassle to set up with your old plastic cards.  Let’s also point out the fact that mObile apps are great!  But, if you don’t actively use them all the time, they quickly become useless.  Push notifications which are also a handy feature, can be cleared so fast that you may not even read the whole notification because you’re busy & you just want it out of the way.

Problem #2:  Most Loyalty Programs Don’t Give Enough Value To Keep The Consumer Engaged For The Long term.  Half of the time I sign up for a loyalty program whether it be mObile or not, I’m getting offers for stuff I really don’t want.  Limited promotions for stuff I’m not interested in, or even care about.  Carol Roth wrote a great article about useless loyalty programs a while ago.

On the other hand, if you get a Text Message, you have to tap on it which opens up the entire message.  This enables the consumer to read the whole offer, & decide if it’s relevant to keep or delete right on the spot.  Another great feaure of our SMS program is the SMS Loyalty Feature.  We have the ability to allow your customers to opt-in to an SMS Loyalty Program & earn points with purchases.  We also can send customers special mObile coupons, offers, & news updates as well.  We can even segment the list down into subgroups from say breakfast customers vs lunch & dinner clientele.  We can send text polls to ask what their favorite sports team is & segment NY Giants fans from New England Patriots fans (we all know how big that rivalry is now).  The possibilities are endless with SMS marketing.  I always tell clients or prospective clients that 99% of small businesses will not need a mObile app because their customer or client base will simply not use it enough to justify the cost.  Text messaging & a good mObile website will cover 80% of the businesses’ mObile needs.

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  1. #1 by Mr. Coupon Sense on January 24, 2013 - 8:02 pm

    Hi there! Do you mind if I repost about this to my yahoo group? I think they would find this interesting.

  2. #2 by tribalstylemarketing on January 25, 2013 - 12:34 pm


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