Technology-driven loyalty programs becoming preferred among consumers
February 20, 2013

Loyalty and gift card programs have become crucial drivers of sustainable revenue growth, as consumers increasingly prefer to do business with merchants who offer rewards for their patronage. Retailers should consider incorporating mobile device compatibility into their loyalty programs to engage the modern customer and improve the efficiency of such initiatives.

AnnArbor.com recently reported that traditional loyalty programs, such as punch cards, are losing steam among merchants, largely because of the increasing preference for digitally delivered shopping content. According to the news provider, restaurants in Ann Arbor, Michigan, are combining loyalty programs and mobile payment processing for the strongest customer experiences.

The source explained that as many as 25 restaurants and businesses have joined forces in the city to create a loyalty program that comes with a variety of rewards, and is compatible in multiple stores and online platforms. Jeff More, co-owner of a local store, explained that this strategy has helped cultivate a much stronger following among the city's residents.

"It is very successful with about 4,000 guests who have joined, and the only way you can join is by submitting a request online," More told AnnArbor.com. "This is much more restrictive compared to many programs that let you sign up as you check out. We feel that we are truly enrolling our frequent guests."

This approach has become more popular with merchants in many regions of the United States, as mobile devices and other consumer-friendly technology has become the preferred method of loyalty participation and payment processing. These tools are often more affordable for business owners, and can simultaneously boost revenues through increased customer engagement.

Merchants should consider adopting integrated payment systems to streamline the transactions, loyalty programs and more. These solutions will also help cultivate information related to shopping behaviors and trends, which can be used to further strengthen strategies. 

Nexus: G-WEBCD3