By: Erika Stevens
If there is one thing that is everywhere right now it’s mobile. From the moment I wake up my smartphone is attached to my hand and an integral part of my daily life. Our last two blog posts have highlighted the future of mobile in the retail industry. There was not a market forecast for 2011 that did not list mobile in some form including ours on the loyalty industry. Mobile is also a mainstay in the news I receive throughout the day whether it is the vehicle I use to access stories or the star of the story itself.
Right now the hot topic related to mobile is payment. When Starbucks announced the expansion of the payment feature on their mobile app at nearly all of their company owned stores paying with your smartphone quickly became a reality. I had the opportunity of watching my brother use the mobile payment while at the Mall of America a few weeks ago and I must say it worked really well. The ease of payment alone isn’t enough for me to buy a Starbucks card since I do not drink there often, but they sweetened the deal with loyalty. Along with the payment feature on their app you register your card to sign up for the My Starbucks Rewards loyalty program. When you use your registered card for payment at the register or via the mobile app you earn stars which translate to free drinks and add-ins. Starbucks mobile app merges payment with loyalty to offer a solution that enhances your experience.
The mobile industry has been buzzing about payment for awhile now often reminding consumers that the phone will become their wallet. I read a great post yesterday by Susan Reda on the NRF Stores website discussing her experience with mobile at the NRF Show. She raises a couple of questions about the details of using your mobile as your wallet. For instance - just how much faster is using your phone for payment instead of swiping your card and signing? Also is it really logical to say that a mobile phone will be the only thing you need when you leave the house? I second her idea that whether I can pay with my phone or not I will never be without a purse.
In the post Susan mentions that she is excited for rewards and loyalty programs to move to the mobile phone. The idea of cardless loyalty is appealing for many reasons; better for the environment, less clutter on keychains/in wallets, less chance of forgetting at home. All of these are benefits to using other means than plastic cards. Some programs use telephone number or email while IDLoyalty has come up with a solution using the driver’s license.
One thing is for certain – the mobile phone is changing the way businesses work and consumers shop. In what ways are you using your smartphone for payment or loyalty?