December 29th, 2014

Weekly Mobile Insights- 12: How loyal are you?

This week we take a look at mobile loyalty programs. A couple of years ago we helped develop and launch O2 Priority Moments which is still one of the leading mobile operator loyalty programs in the world generating approximately $2 Bn in incremental revenue. Since then we’ve worked with start-ups such as Nokadi, Twoforone, Vegas, retailers including H&M, Abercrombie and Tesco, FMCGs like AB Inbev, Unilever and Johnson & Johnson as well as other carriers including Telenor, Ooredoo and Vodafone.

Why is loyalty so important to any business?

  • “Typical business loses from 15 to 25 percent of its customers annually.” – Forbes November 2013
  • “80 percent of your future profits will come from just 20 percent of your existing customers.” – CMO Exclusive August 2013
  • “Repeat customers spend 33% more than existing ones.” – Harvard Business School 2013
  • “Companies need to spend 6 times more to gain a new customer than selling to a regular customer.” – Thompson Group 2012

So who’s getting this right and what are the key insights to this?

Mobile Marketing Watch provides 5 great tips for creating loyalty programs.

Usually the most referenced success story is the Starbucks loyalty card app so therefore we will highlight a few other great examples:

  • Dunkin Donuts describes their mobile loyalty program launched at the start of 2014 as a success with 10 million downloads and over 2 million active members. We agree! Read more here.
  • Dairy Queen plans to roll out the myDQ program to its 4,500 U.S. franchise partners and its customers across the country. Read the full story here.
  • Orbit about their loyalty program and mobile.
  • Finally, what should a brand that doesn’t have a loyalty program today do? Here’s a great article on “Why McDonald’s needs a loyalty program”.

 

Tags: Brand Marketing insights mobile loyalty

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