Gift card programs and loyalty programs encourage shoppers to spend more
September 20, 2013

Advanced gift card programs and loyalty programs can go a long way toward encouraging shoppers to make more purchases. In today's increasingly digital retail industry, many businesses have decided to invest in technology that allows them to accept mobile payments and accommodate the growing dependence consumers have on their smartphones while shopping in stores. However, a fully integrated electronic payment experience isn't necessarily the only convenience shoppers are interested in having while visiting their favorite stores.

Consumers are also interested in using their mobile devices for gift card programs and loyalty programs. According to a recent report from the Center on Global Brand Leadership at the Columbia Business School, 48 percent of mobile consumers will purchase more products if they are active participants in a loyalty program. The study said the same behavior holds true in circumstances in which shoppers are aware of lower or equal prices for the same products through online channels.

Yankee Group, a marketing research firm, recently released a study showing 47 percent of participating consumers wish more businesses would offer unique mobile applications that reward continued purchases. As a result, retailers have much more to think about when investing in payment integration technology. Rather than focusing exclusively on transaction processing, small and medium-sized businesses can take advantage of mobile's convenience to encourage long-term customer retention.

Nexus: G-WEBCD2