Many consumers are at the edge of ceasing to use loyalty cards despite still wanting to save money and benefit from discounts, because it is bothersome to carry them all in the wallet at once, and fumbling with plastic is not convenient at all. Those days seem to be over because new apps are available that not only replace such loyalty cards — from shopping to airline miles — but store all of them under a single application, electronically. This makes the app independent from the shopping venue, and it can be used by all vendors that have a barcode reader or Near Field Communication (NFC).
The consumer simply needs to choose from a number of loyalty card apps that are available for iOS, Android and BlackBerry. The app gets downloaded, then the groundwork starts. With the app, the barcode of the respective loyalty card can be scanned — with some, it also works by simply taking a photo — and the card’s information gets stored in the system. The loyalty card data then needs to be linked to the respective retailer, and the system is up and running. To use it in a store at checkout, the cashier simply needs to scan the barcode from the customer’s smartphone, and everything is done.
Most apps also allow the storage and similar use of information on coupons and event tickets. The new solution is on the march worldwide, with Starbucks, for example, having been one of the pioneers, followed by fast-food chains — McDonalds recently started a trial — as well as fashion stores and shopping malls.
Local options
In the UAE, one of the first shopping venues to come up with the idea of using a mobile loyalty card was Dubai’s Wafi Mall, using an app for its popular Wafi Rewards programme, which offers discounts and dining rewards at more than 250 outlets in the mall, the Pyramids and at the spa. And the good thing is members of the new Wafi Rewards programme will no longer be required to carry their traditional plastic loyalty card. The new technology has been developed by UAE-based mobile application company ViaFone Technologies. With the app on the smartphone, reward points “can be collected and redeemed with a simple wave of a mobile phone towards a contactless tablet”, says Moira Billington, Head of Marketing at the mall. “They will then receive an SMS confirming the transaction,” she adds.
The technology can be used either with an NFC-equipped smartphone through contactless interaction or barcode scanning. Taking the loyalty programme to the next level, members are able to share information with friends via social media, receive notifications for special offers or collect individualised discounts. This makes it possible to design profiles of members and analyse their interests and preferences through data mining.
“This advanced behavioural profiling enables any shopping mall and its retailers to cater more relevant offers to specific members of the loyalty programme in real time,” says Souffiane Houti, Founder and CEO of ViaFone Technologies.
Another new loyalty card solution for the UAE has been developed by Snapp, a company founded by entrepreneur Alborz Toofani. The app, which is available for Android and iOS, can be downloaded and used to electronically store the loyalty cards of Snapp’s ever-increasing network of partners. The app aims to replace traditional plastic cards used at coffee shops and service providers around the city by keeping all loyalty points on the phone. It can be used at many outlets around Dubai and additionally with Mashreq’s customer loyalty programme.
Loyalty solutions
Another Dubai-based company, Avi Infosys, has launched an app called iPointz, which provides mobile loyalty card and prepaid payment solutions to help retail businesses keep customers loyal and connected. The company says it is more loyalty solution than app. It is based on a cloud computing system and software-as-a-service to be integrated with full-fledged loyalty programmes or customer card systems using NFC, not only at malls or retail outlets but also hospitals, food courts, for frequent flyer programmes, events, hotels and entertainment venues, and even as staff cards for employees.
Another example for a mobile loyalty solution as an app has been developed by Mercator, a Dubai-based provider of business IT solutions to the global aviation industry and member of the Emirates Group. The solution aims at frequent flyers to help them accrue and redeem points faster. Club Premier Aeromexico, the preferred loyalty programme in Mexico, became the first customer to sign up for the Dubai-developed app.
“We have worked to develop innovative IT solutions to enrich the experience customers have with their business and brand,” says Mukund Srinivasan, Mercator’s Vice-President. “We need to ensure we equip customers with technologies that help drive their company forward.”
