For years, customer loyalty programs work poorly at the POS. One reason is that existing payment systems offer no connection between goods, customer and transaction ("know your customer"). Because of this missing link, an analysis of consumer behavior or personalized marketing is impossible and the stationary retailers lose increasingly market share to online retailers.
In order to solve these problems, new analytic and advertising tools are necessary. In this case the mobile channel leads closer to the customer than any previously known one. Due to the high penetration of mobile customers and the typically 1:1 mapping of user and device retailers gain new opportunities to build a direct channel to the customer. This enables completely new forms of direct interaction with customers and generates a very high potential for customer retention and customer acquisition.
The special characteristics of the mobile channel enable retailers to come closer to the customers than all other marketing activities. Campaigns can be implemented more target-oriented, customized and measurable. In addition to increasing sales mobile marketing supports increasing brand awareness, changing brand image, establishing brand loyalty, building customer database and mobile viral marketing. New opportunities can be gained by NFC, with which high-quality and intuitive applications via "touch & go" can be realized. Examples are smart posters which provide product information, advertisements or coupons. In addition, mobile loyalty programs can bind customers more efficiently and effectively to the company than with any traditional loyalty programs.
The integration of a mobile payment procedure offers a connection between the transaction, products and customer. The combination of mobile marketing and mobile payment is widely accepted. 54.6% of the participants in the study “Acceptance criteria for mobile payment procedures (MP3)" would use a loyalty program on the mobile phone.
Besides the integration of mobile marketing, mobile loyalty and mobile payment, retailers can generate additional sales and distribution channels by offering their own mobile products as a mobile virtual network operator (MVNO). About 27% of the German mobile phone customers have already a contractual relationship with an MVNO.