Motorola Enables Loyalty Programs via Smartphones

Michael Vizard

Given the fact that potential customers now spend more time looking at the their smartphones than any other device, the smartphone has become a natural delivery platform for retail loyalty programs and other corporate messages.

At the National Retail Federation conference in New York today, Motorola is launching new Mobile Loyalty Solution that allows retailers to send coupons and other messages to an end user's smartphone that can be redeemed at the store by swiping the smartphone in front of a scanner.

According to Frank Riso, senior director of retail solutions in Motorola's Enterprise Mobility Solutions Group, the Motorola capability differs from other approaches to providing a loyalty service in that it gives the retailer control over the program and the customer information generated by it, versus participating in a service managed by somebody else.

According to a Motorola survey of over 4,000 shoppers being released today, 64 percent of people ages 18 to 34 who where survey across 11 countries used their mobile phone for a shopping-related activity while in a store. And a separate Juniper Research study forecasts that mobile coupons will generate $6 billion in redemption value globally by 2014.

None of this opportunity is lost on the makers of smartphones, either. Nokia, for instance, has created a Nokia Money Service that allows customers to conduct e-commerce via a service owned and managed by Nokia.

The degree to which businesses want to own and manage such services themselves, versus relying on carriers and other service providers, remains to be seen. But one thing is for sure: The days of clipping coupons out of newspapers are rapidly coming to a close.

Add Comment      Leave a comment on this blog post
Aug 4, 2010 3:19 AM Card Guru Card Guru  says:

Plastic loyalty cards will still be around for a while. Retailers like handing out something physical to customers, both as a mechanism for tracking customer purchases as well as a marketing piece that a customer carries around all day.


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