Why is Mobile different for Push Contact Loyalty Programs?

I have been getting really upset lately (who me?) about this ridiculous view that Mobile is different when it comes to Loyalty programs. That all the same people who signed up for email contact (opt in) and agreed to accept contact later (push advertising) will behave differently with mobile? In fact I think it will be the opposite.

I lifted this from a Mobile Loyalty Program Provider:

Specifically, consumers engaging Mobile CRM programs are giving the brand 24/7 open-door access to their mobile device by telling brands, "I'm interested...here's my cell number...send me anything you want, that you think I might be interested in receiving."

Yes when you join a few SMS or 2-D Bar Code type loyalty programs you will at first engage. Then you will add a Geo-Fence or 2 where as you drive by somewhere a deal is sent to your phone. Then you will have 50 then 100 etc. And then presto just like email....EXCEPT.....with email its in my email. My phone isn't buzzing every time I am contacted. And the day my phone starts buzzing every time I am contacted I will eventually hate my phone or the Brand that is harassing me.

So how do you fix this? Obviously making all the contact email style brings back the same email problems! Lack of response, apathy, delete unopened. Is the in box on my phone different than on my laptop? No it isn't.

I tell clients to be respectful. Condition your fans who love your products, your brand etc to connect on their terms. Let them know that they can access/contact you via a mobile APP or website or send a SMS or 2-D bar code that allows them to see what your offering. For non-fans you need to contact them outside of mobile and use the right reason for them to Opt-In for a call to action campaign.

And for Loyalty programs see my old post on them:
LINK

I suggest tying rewards to purchases or visits. Use FourSquare or similar. Set up an APP that purchases get saved and add up so after reaching some goal they get something. But to take someone's cell number and just send them offers repeatedly is going to piss them off and you could turn someone who likes you to someone who hates you very quickly.

The Falsehood behind Mobile Marketing Loyalty Programs

I have railed against Mobile Loyalty programs that after the initial sign up are really just push advertising to your phone. My specific beef has been that once you sign up for enough of these they pretty much all become spam, kind of what email is today. And in my opinion truly powerful mobile marketing is initiated by the consumer with a call to action, then an action taken. passively receiving notifications and offers is not powerful.

But my beef here is terminology. A true loyalty program earns points, or tracks your spending, like frequent flier or your super market club card. Other great ones are the business card size punch cards for buying a number of coffees or sandwiches you eventually get one free. Or even the drink buy backs at your favorite bar.

Most SMS Loyalty Programs I read about in the Advertising Trade Pubs start with a Call to Action SMS Text to get a coupon and then be entered into the loyalty program. The programs state 'to receive special offers in the future sent to your phone' vs 'once you spend X amount we will send a special payback to your phone'. But if I push offers to your phone unless there is a method to track your customer's spending with you, its not a loyalty program. If I get coupons sent via SMS saying we appreciate your business without having to buy more stuff to earn it, where is the loyalty? Isn't that just a give me your phone number and I will text coupons to your phone program?

Furthermore, if a customer who has your business in their regular rotation, unless there is an incentive for them to increase their spend and their patronage, you need to remove the loyalty title and just call it a coupon campaign. And if people expect to always have a coupon or discount every time they show up, your list pricing will stop being looked at as 'the price' vs the 'discounted price'. That can be deflationary to your revenues.

For example if I always discount my chicken wings from $7.99 to $5.99 your view eventually will be your buying a $5.99 product. And expect $5.99 quality vs $7.99 quality.

So unless your running a true loyalty program, call it a creative discount program. Make your special offers unique to draw them in. Make the customer think this won't be around next week, vs. knowing like clockwork the same discount will be showing up in their in box every 3rd Monday of the month.

My beef with so called loyalty programs

Advertising is like Politics. People tend to stretch terms and lingo to reflect their needs vs reality. And the term 'loyalty program'. It has been thrown around loosely recently specifically for Mobile Marketing and this needs to be clarified and the abuses of the terminology ended once and for all!

Signing up for future offers/contact is not a loyalty program. It is just an agreement to be pitched in the future by a company for their products and services in hopes you will be swayed to buy something down the road. It does not require a purchase of any sort, only that you sign up (opt-in) for these offers. When a business runs a Mobile Campaign to collect phone numbers for their database so they can contact your phone later is not a loyalty program. That just qualifies you to view special offers on your phone. Same as if you sign up for email or direct mail marketing pitches. And these programs are way down on the priority list for people. They might read them but the conversion rate will be lower than true loyalty programs.

Loyalty programs require purchases. They reward you for patronizing a firm with your business, whether personal or professional.

Examples of loyalty programs are supermarket rewards cards, office supply rewards, or as simple as getting a card stamped and after buying 8 coffees you get one on the house. Loyalty programs can be long term or short term. Short term examples are the McDonald's Monopoly Game. The more you buy the higher the chance of winning a prize or free give away. Same with Airline Frequent Flier Miles.

The big reason loyalty programs are so impactful is because you get something back for your patronage beyond the 'deal'. We might be interested to hear from all sort of brands what their current special or promotion is, but if all is even a person chooses the greater reward (kickback). When I search for Airline Flight Pricing I will steer my business to the Airline I have the most frequent flier miles with before choosing a different brand. The simple reason is consolidation brings a faster reward, in this case a free flight.