Caution Advised On QSR Mobile Loyalty Programs

Friday, February 12, 2010 by John Gaffney
Although we might want it to, building brand loyalty doesn’t move at the speed of technology. It moves at the speed of the customer. It’s important to remember this as mobile technology starts to round the corner. Mobile is a brilliant way to communicate with the customer and acquire customers. And like anything that has customer acquisition involved, data is essential.

We have seen some very smart mobile applications lately. Recognizing consumers' need to use mobile phones while shopping, Motorola has launched Mobile Loyalty Solution, which serves as an extension of existing loyalty card programs or as the basis for new digital efforts. The service eliminates the need for membership cards and paper coupons. More importantly retailers are using it to build a database of shopper product interests, purchase habits and preferences. The Motorola offering works with most smartphones, and will allows retailers to target consumers with the best offers and discounts on products that interest them. But let’s not forget smartphones are somewhere around 35 to 40 percent of your customers. It’s part of your customer base and will grow. Use data to track that growth.
The mobile loyalty programs are just starting to find a foothold in the QSR vertical loyalty programs, according to a 2009 report from information commerce provider First Data.

But they are starting to show themselves. Southern California pizza chain zPizza is implementing a mobile partnership with Mocapay, a Denver-based company that created a mobile platform for zpizza to use for loyalty and gift-card efforts. The platform allows customers to use mobile phones in place of plastic loyalty or gift cards. They can pay at point of sale and check card balances simply by using their phone.

Will it work? Depends how you define success. We encourage retailers in the QSR space to look hard at mobile loyalty programs for customer segmentation, and customer market research  as their customers integrate mobile commerce into their lives. Remember that the technology is not the driver. Remember that customer retention and engagement are the key drivers. Look at your customer data first, and proceed with caution.


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