Apps render plastic passé

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).

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

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.

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.”