A new study from Juniper Research, a summary of which was provided to MMW this week, shows that more than 3 billion loyalty cards will operate as mobile-only or be integrated into mobile apps by 2020, up from 1.4 billion last year.
The new research, Mobile & Online Coupons: Redemption, Loyalty & Consumer Engagement 2015-2020, found that brands and retailers are increasingly responding to consumer demand for mobile integration, with many now offering customers the opportunity to store their loyalty cards within a dedicated digital wallet.
Crucially, the research argued that the improved targeting and personalisation made possible by digital coupons was leading to greater activity rates, thereby resolving a key failing of traditional schemes where the lack of relevant offers had resulted in a downturn in usage.
However, the report summary notes, the new research found wide variations amongst retailers and other reward card providers with regard to the extent of digital loyalty integration. In the UK, it observed that around 40% of Nectar Card holders had acquired the loyalty app by late-2015, but less than 4% of Tesco Clubcard holders. It found a similar disparity between US retailers Walgreens, where 61% of card holders had linked their card to an app, and Target which had only 27% of cardholders linked.
The complimentary whitepaper, ‘Coupons ~ Personalization Goes Hyper’, is available to download from the Juniper website together with further details of the full research and the attendant Interactive Forecast Excel (IFxl).