Section 508

March 28th, 2014

Why mobile offers will kill your business

Almost every story about iBeacons, push notifications, in-store retail experiences, mobile loyalty and mobile payments talks about the amazing abilities of delivering targeted offers to customers. It seems as if we will get offers, coupons and discounts pushed to us wherever we go. But what would happen if retailers, restaurants and CPG brands all constantly bombarded consumers with targeted discount offers?

  • Businesses will lose revenue as a large proportion of consumers probably would have bought the same product anyway
  • Consumers will get offer fatigue and turn them off
  • Brand perception will be negative if everything is always sold based on discount
  • Privacy advocates will legislate to “protect” consumers from offers

Simply put, pushing offers at the core of your mobile strategy will kill your business long-term. And yet, this is what every start-up and business seems to focus on these days.

So what should you do instead?
Loyalty solutions for mobile should be at the core of every business. The mobile phone is with users wherever they go and can easily be turned into a virtual loyalty card, a utility for services and an engagement tool. Great examples of how brands drive loyalty and footfall to their services without offering discounts include:

  • VIP treatment – offer customers a special experience such as seeing a new fashion collection or product first
  • Rewards without discounts – Airline upgrade programs are a great example of this. A seat in business class is available anyway but offered to the customer as a reward
  • Reward customers with CSR initiatives – Pets at Home donates money to animal charities based on customer spend
  • Points programs – airlines, credit card companies, etc enable customers to collect points that can be exchanged for freebiees based on how loyal you are
  • Targeted offers – retailers provide offers on a product that the customer wouldn’t otherwise try or buy

All of these examples are perfect for mobile and will generally cost you less, increase profitabilty and drive an increase in customer satisfaction.

Contact us to hear more about how companies have implemented these initiatives and generated more than 1 Bn USD in incremental revenue.

P.S. Strictly speaking it’s not offers that will kill your business but untargeted discounts, vouchers and propositions. And even if they don’t kill your business, they will reduce your bottom line.


Tags: beacons mobile loyalty mobile marketing push notifications retail

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