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Socialisation – Loyalty Cards and Gamification

Ultimately if you want people to use your loyalty card, visit and spend lots of money enjoying your service, products and services, wouldn’t you rather they bring their friends and family, or encourage them to come and join them. There are gender differences here of course. Shopping for women is often a social activity, something to be enjoyed with friends and is an outing in itself. For guys that might be the case for specific things like food and beverage, electronics and sporting gear (I am generalising and there are of course exceptions:) but in general terms a fun group outing is more likely to be going to a bar, a sporting match etc. Of course hospitality, entertainment, attractions etc are all most enjoyed if done with friends.

Foursquare in its points structure will give you more points if you log into a location at the same time as your buddies. Tap City uses Foursquare Points of Interest and has a game element where you can take ownership of a location by attacking it and getting your buddies to join you in the attack, turning it into a real game, but one that requires that you do check in to places to complete certain activities.

FREE App Rugby2GO for Android and iPhone

Loyalty programs for single venues or large programs with many venues are all there to generate business for your destination premises. This opens up great opportunities for incentives. In many cases points and recognition are enough, but why not encourage people to not only participate but also to get their friends to sign up. For example, lets say we had a loyalty card for restaurants and entertainment. You could have a deal where if you bring a friend to a cafe, you get 2 points, or maybe a free muffin, but if your friend becomes a member of the loyalty program and joins you there, you get more. Its Rugby time in New Zealand with loads of tourists going to Fanzones and enjoying the restaurants, bars, concerts and shows that go with the World Cup. A lot of people have Smartphones and are enjoying FREE iPhone and Android applications like Rugby2GO which has all the Real New Zealand Festival locations on it complete with directions from wherever you happen to be.

These apps are great and are a perfect stepping point to creating social engagement. If they allow you to upload all of your friends from your various social networks in the way applications like Foursquare, Instagram, Layar, and countless others do, then you are already crowdsourcing for free. All you need to do now as an application host is encourage them not only to get their friends to your location using the gamification we have talked about in our other recent blogs, and then also get them to invite them to install the app and join, perhaps using a promo code that recognises that your friends have joined them and identified them as friends, which also of course helps with your profiling.

South Africa v Namibia

Profiling people into groups with similar interests is of course something that Google has introduced with its Google+ circles and we are starting to see this in applications. So if you own a bar or number of bars, are showing the Rugby on your big screens, wouldn’t you like to be able to encourage your loyalty program members to not only invite their friends, but have them sign up to the program, reward them for doing so, then give them a great time so they want to come back, with their friends. This is known as crowd sourcing and also plays a part in viral marketing.

As a footnote on viral marketing, a reminder that you do not do viral marketing, your customers, friends and program members do that. All you can do is facilitate it. Create an environment they want to be at and share and they will do it for you. Of course you have to deliver on your promise and make sure they really do enjoy themselves. There is so much more you can do once you get started and of course we are full of great ideas and desire to help you make it work for your loyalty program. Why not Contact Us and have a chat about it?

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October 5, 2011 Posted by | AA Maps, Android, foursquare, geosmart, iphone, location based services, Loyalty Card, Mobile maps, proximity based marketing, Rugby, Rugby World Cup, Social Media, Uncategorized | , , , , , , , , , , , , , , , , , , | 5 Comments

Adding Game Mechanics and Location To Loyalty Cards

Following on from my last blog Adding Location to Loyalty Cards, an area that I feel is really important is game mechanics. One of the problems with loyalty cards is that they are inherently boring and there are lots of them. We live in a world of constant distraction and we want instant gratification. However that gratification doesn’t have to be a free air ticket or turbo food processor with Ginzu knives. It can be as simple as points or recognition and applications today need to evolve as the public become more tech savvy on their mobiles.

What is game mechanics and how is it relevant? Playing games is part of who we human animals are. Games are a natural part of entertainment and education, whether it is a child doing its first jigsaw puzzle, or the All Blacks heading into a rugby match at that international world competition for a cup. Yes, ultimately no matter how passionate we are about success, Graham Henry and the NZRFU themselves said “It’s just a game.”

Games are immensely popular and computer and mobile  offers massive revenue potential. Gartner predicts that the global video game industry on its own will generate revenues of over US$112 billion by 2015. That doesn’t even take into consideration mobile. Application developers have been all over Facebook, now on Google+ and on devices such as iPhone, iPad and Android and now developers of smart location based games and marketing applications are heading the same way.

Developers are looking to use our interest and passion for playing games to influence the behaviour of consumers and it is working. One obvious area is in the retail, travel, tourism, attraction, hospitality and entertainment industries. Of course as I have outlined in many recent blogs, loyalty is a key aspect that all of these industries are looking for, or in other words, profitable repeat business.

So what aspects should a loyalty application include. A major one is achievements. I’ve talked about reward and that rewards don’t have to be tangible items. A reward can be points such as the points used by Foursquare when you check into a location. They also have badges and mayorships which are either the reward itself or their may be special deals or offers made to those people who come in regularly. The new Tap City game allows you to earn virtual dollars for checking in. One of the great things about group loyalty operations is the ability to cross market, for example using a passport concept where the more locations you check in to, the more rewards you get.

The appointment dynamic is extremely powerful. This is where you want people to do something at either a predetermined time or an ad hoc time. For example a restaurant that is always quiet between 3PM and 5PM on a particular day of the week might offer incentives within the application to get more business at that time of day. The concept I like the most, is pushing deals when you have inventory you want to use in a hurry. An example might be the special of the day in a restaurant where you haven’t sold as much as you catered for. The classic story I often use of a jet boat that is going out in 20 minutes with 5 empty seats. This is a perfect opportunity to push a deal to people who are close by and have opted in to be offered deals. The cost differential between having 4 or 9 passengers is negligible but the fun and entertainment factor of 9 people screaming as the boat does a 360 degree spin is significantly greater for all, including the 4 who paid full price. There is also a potential dynamic of more people seeing them having fun and therefore wanting to have a go themselves. The same could apply to any attraction, like the luges in Auckland and Queenstown.

Queenstown Luge

I can come up with a hundred concepts for different types of locations for cafe’s, restaurants, attractions, theatres, travel, accommodation, entertainment, retail, sport, tourism and so can you.

I will continue this blog next week with more thoughts on game mechanics or gamification that you might like to consider in your location based application. Remember, GeoSmart has all the data and tools you ned to make these ideas possible and whilst we don’t develop these sorts of applications ourselves, we have many partners who are keen to assist you if you want to take advantage of the opportunities now possible because of the large number of people using location aware mobiles. The question is how much extra business would you like?

Maybe you would like to join the discussion and leave a comment of your own to add to the mix?

September 23, 2011 Posted by | Check Ins, foursquare, geosmart, iphone, lbs games, location based services, Mapping Applications, Mobile maps, new zealand, proximity based marketing, Retail, Retail Profit, Rugby, Rugby World Cup, Sales, Uncategorized | , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Using Location in Loyalty Cards

Loyalty cards haven’t fundamentally changed the way they do business for many years. There are the fans and the people who actively look for deals, but most of the people we have spoken to recently have said that the time they realise there is an opportunity is when they are at the checkout and the cashier asks if they have their Fly Buys or whatever card. This obviously is not generating increased sales or revenue.

There are huge opportunities for loyalty cards to exploit location with the large number of people now using Smartphones fitted with GPS. Effectively a Smartphone application can therefore identify when a card holder is near a store or participating retailer and can potentially be offered a deal using push technology. We are hugely spoiled for choice these days as retailers flock near each other to try to win your business. For example, if you go to AA Maps and do a search for ‘Hardware Albany’ you will come up with 48 results! That’s a huge range of options in one area within around a 5km radius.

Albany Homes Owner Occupied 70% or Over

A large number of these retailers spend a lot of money on advertising in newspapers, magazines, letter box drops, eDm’s and much more. Many of them are involved in loyalty card programs which provide additional opportunities for targeted marketing. These are all very expensive media and the approach uses often sophisticated targetting using demographics tools, such as GeoSmart’s BIonaMap discussed in a number of our blogs such as this one using demographics for a lawn mowing franchise. By understanding what your target market is, you can identify the best place to locate your store and which areas are best for letter box marketing. Of course success requires that your target market is open to buy and looking for your product.

If a consumer is looking for a lawn mower and your mailer arrives in their letter box, there is the potential that they will visit your store, but how often do they buy lawn mowers and how often do they read your mail drop? The example illustrated here shows homes where the owner occupancy is 70% or greater, a perfect target for DIY sales using BIonaMAP from GeoSmart.

In coming blogs I will post examples of how a loyalty card smartphone application using GPS location could integrate with retail Point of Sale systems, inventory management and really understand what a customer is looking for, sending meaningful offers to consumers when they are looking for product and are in proximity. If you make things easy for customers and have a meaningful relationship with you, they will buy your products over your competitors products, but to effectively do that, you (your technology systems) really do need to understand who your customers are and what their needs and interests are. They want to give you their money and it isn’t necessarily about special pricing.

Where should you start? Probably by asking what your loyalty card company is doing about proximity based marketing and check ins (which we have discussed frequently on this blog). GeoSmart is keen to support local loyalty card companies and application developers and we are convinced that there are huge opportunities to really bring in serious retail profits and the opportunity to develop genuine loyalty relationships. Who wants an unfair advantage? If that’s you, why not contact us?

Feel free to ask questions here or to leave a comment. Bookmark this page for upcoming blogs on how a loyalty card company can use this technology to help their partners win more business.

September 19, 2011 Posted by | Business Analytics, Check Ins, geosmart, gps, new zealand, proximity based marketing, Retail, territory management, Uncategorized | , , , , , , , , , , , , , , , , , , , | Leave a comment

Location is Going Places

Obviously we would love to be writing more blogs about how our clients and partners are writing location-based apps using GeoSmart Maps API’s and Web Services and how we are helping the discover new ways to use location for proximity based marketing, location-based games (read future proximity based marketing), location-based education and  much more.The good news is that there are many new projects happening and more announcements to come next week from our camp.

There are companies who automatically go to global map providers because they perceive there is no difference and maps are pretty much all the same. To those people I say, go and have a look at the new Upper Harbour Motorway on AA Maps (one of our clients) using GeoSmart Maps and then check any other map provider on the web or on a mobile application. It’s only one of many locations we update as they happen because we are local and we care about providing the best data to our clients and to New Zealand motorists, but it is pretty major if you travel between west and north Auckland.

So this blog is for those of you who are wanting to develop applications using quality maps and location-based data, because we want to keep you informed and share great ideas with you and help you achieve your goals, whatever your business models and budgets may be.

One of the areas that I think is huge is proximity based marketing. If you are running loyalty programs, you really need to think about what you are doing. If they are working well, then we say they could be working much better, if they are not performing the way you would like, you should talk to us about how we can help, because location is our bread and butter.

As we have discussed before, the marriage of social media and location is really going places. I’d like to mention a couple of recent developments relevant to the many blogs here.

Foursquare

Now obviously Foursquare is global and needs more than the excellent New Zealand and Australian Maps we provide, but they are really showing the way to develop successful check in software. Want to know more about check ins and Foursquare have a look at more of the blogs on this site.

One of the things that people have been asking about is how to push a message to people based on their proximity. In effect, rather than have people open up Foursquare and look for deals and promotions near you, what people have been asking me about almost daily is how do we push an alert to people, rather than have them stumble on opportunities.

Now Foursquare has their own very popular application and I hope to hear that their latest announcement appears on their own application as well as the API’s they offer to developers. The Foursquare global hackathon starts tomorrow and it has een whispered on many sites around the world that one of the new features to be launched there is a Push API.

What does this mean? Well effectively it is an opportunity for developers to look at ways to send push messages to people using their applications using the Foursquare API’s. During the hackathon there will be competitions to see who can come up with the best applications using this functionality over the week. It could be almost anything and I’m hoping that this will provide our local New Zealand developers with ideas as to what they can do using these concepts. A few ideas being floated include:

  • Your mobile shopping list reminds you that you haven’t bought the milk and you are passing your local grocery store.
  • You are at a bar or restaurant and your app tells you that you have friends nearby. You can notify them where you are and get them to join you.
  • Your restaurant has empty seats and you have loyalty customers nearby, send them an invitation with tonight’s specials
  • Your loyalty card has double points today and you are about to pass your favourite Petrol Station, DIY, Clothing, Consumer Electronics store

Obviously we have much cooler ideas in our treasure chest to share with our clients, but you get the idea I hope. This is one of the missing links and is going to turn the concept of check-ins on its ear in my humble opinion. Now you don’t need to use Foursquare for this, although I’m not saying you shouldn’t. Personally I’d like to see these sorts of things being developed and proven locally in the way good Kiwi entrepreneurs do, with support from GeoSmart and then shipped overseas generating export revenues.

We have clever and passionate people here and sometimes it frustrates me that companies developing applications around locality instantly go to American or other map providers who aren’t passionate about New Zealand aren’t keeping their maps up to date and don’t have local resources to help. OK, I’m off my soap box people.

September 15, 2011 Posted by | AA Maps, Auckland, Australia, Australia Maps, channel partner, Check Ins, competition, competitions, foursquare, geosmart, gps, ICT, Indoor Navigation, iphone, lbs, lbs games, location based services, map tools, Mapping Applications, Marketing, new zealand, new zealand maps, proximity based marketing, Social Media, social networking, Uncategorized | , , , , , , , , , , , , , , , , , , , , , , | Leave a comment