According to a survey from CodeBroker, the biggest consumer complaint with loyalty programs is simply carrying the plastic card itself.
Forty-three percent of the 1,207 U.S. consumers surveyed ranked physical cards as their biggest pain point with loyalty programs. Another 17 percent cited looking up a missing card while 15 percent said it was linking a card online.
At the same time, 71 percent would be more likely to use their loyalty cards if they could access these cards and rewards from their mobile phone.
Having an easier way to manage rewards — point totals, expiration dates, personalized coupons, etc. — was a primary reason consumers are looking for simpler mobile access. Of the respondents, 65 percent had attempted to redeem a reward at POS and found it expired, 43 percent saw rewards expire before they could be redeemed and 38 percent never knew if they had rewards available. Only 24 percent felt they understood their loyalty programs and how to earn rewards and change tiers.
A survey last year from Vibes found that another incentive to saving loyalty cards on smartphones is reducing the need to carry plastic cards or key fobs. Vibes asserted the greater openness to digital loyalty is partly tied to the arrival of mobile wallet applications that can store point balances and loyalty levels in real-time.
Also, as mobile payment adoptions slow due to security concerns and a lack of direct benefits, incorporating engagement tools such as loyalty may help.
According to a survey last year from Urban Airship, 73 percent of respondents were more likely to join a loyalty program if points and rewards are automatically updated and immediately visible on mobile wallet loyalty cards.
The same survey found that loyalty ranked as the top mobile wallet item consumers wanted, at 67 percent. Also ranking high was being able to view order delivery date, mobile payment via credit card, and reminders (expirations, balances). Forty-four percent wanted sales updates (notifications for sales), 41 percent digital receipts/warranty and 39 percent, gift cards.
- New CodeBroker Research Reveals Pitfalls of Retail Loyalty Programs – CodeBroker
- CodeBroker 2017 Shopper Loyalty Survey Results (study) – CodeBroker
- Should plastic loyalty cards go digital? – RetailWire
- 2016 Mobile Consumer Study – Vibes
- New Survey Finds Mobile Wallets at Tipping Point for Consumer Adoption – Urban Airship
- Mobile payments struggle to make impact on contactless card use – The Telegraph