Understanding mobile loyalty platforms that are transactional

Mobile marketing loyalty


There are many different types of transactional mobile loyalty platforms and, like the old punch card and plastic cards with the magnetic stripe, each of these new programs designed for mobile devices has their own benefits and drawbacks.

Consider the following types of mobile loyalty platforms that are of a transactional nature:

• Optical character recognition (OCR) mobile loyalty platforms

To take advantage of these platforms, consumers must download a dedicated app into their smartphones and snap the image of each of their receipts. The concept behind this method is to have the technology decipher the receipt’s contents and apply the associated rewards. Though the idea is a solid one, the technology is susceptible to issues in reliability. The user must be exceptionally accurate, clear, and in proper lighting for taking the image or it will not function properly.

• App-based mobile loyalty payment platforms

Smartphone users must download an application into their device, and link their account to a debit or credit card. That way, instead of using their actual cards in-store, they can present some form of membership identification, such as a barcode, which the retailer will scan at the point of sale using their own hardware. This usually generates some sort cash-back incentive. Acquisition using this technique is difficult, but it usually works quite well among customers who have already enrolled.

• QR codes with transaction identification

Mobile device users can receive and redeem rewards through their smartphones by scanning a transaction-identifying barcode on their receipts. This is similar to the concept of OCRs except that a dedicated app is not required, and the scan needs significantly less accuracy in order to be effective.

• NFC payments

Near field communication is likely to be the most common technology for the upcoming mobile wallets which will allow users to make purchases by tapping or waving their smartphones over a reader device at a point of sale. Though this will be very easy to use, the majority of mobile phones have yet to include this technology.

Article: Understanding mobile loyalty platforms that are transactional
Article Source: Mobile Commerce Press
Author: Jennifer Goula

Understanding mobile loyalty platforms that are transactional

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