A new study from Juniper Research has found that more than 3 billion loyalty cards will operate as mobile-only or will be integrated into mobile apps by 2020, up from 1.4 billion last year. The new research 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 personalization 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 new research found wide variations amongst retailers and other reward card providers with regard to the extent of digital loyalty integration.
The research warned that retailers that did not offer mobile integration were likely to have far lower levels of visibility on consumer activity. As a result, it cautioned that they would be at a disadvantage when seeking to tailor offers and thereby increase the lifetime value of the consumer.