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Adding Location To Loyalty Card Apps

There are obviously lots of different kinds of loyalty cards. I have somewhere between 10 and 20 cards ranging from Coffee Cards through to Airline Frequent Flyer Cards. I have so many I can’t carry them all in my wallet, which is unfortunate when I find myself in a position to use one. I do carry a Smartphone, so there are opportunities to carry apps. Many retail companies in New Zealand now have apps, mostly on iPhone and Android. They range from cafe’s and fast food companies to tourism and banks. Features include the ability to order food from a specific store, the ability to view the store on the map, make reservations and view points.

A lot of companies have had back on using Smartphone applications for loyalty programs on the basis that there are not enough people using them. At the last Social Media Club Auckland event one of the panel questions was what is the penetration of Smartphones in New Zealand. No one had an answer as the telco’s generally don’t want to share this competitive information. However in this month’s IT Brief there was a quote from Tony Baird of Vodafone saying that 66% of their mobile users now have Smartphones. That’s pretty high penetration and growing rapidly as is their data traffic which grew from 60TB in June last year to 135 TB in June this year. It would be reasonable to expect at least Telecom to be showing similar penetration.

So, in my last post I talked about a number of aspects of getting to know your customers. Given the statistics in the poll on my previous blog almost 70% of loyalty card holders do not specifically head to shop at a store where they have a loyalty card. In effect this says that the loyalty card in most cases is not attracting people to do business, or effectively be loyal to the retailer or group who invest a lot of time and money into the card systems in manufacture, distribution and all the other aspects of running a loyalty program.

What is missing? I believe that one aspect is not really understanding the customer. Let’s start simple. How do you get a loyalty card? Obviously it varies. Some cards like a coffee card are as simple as the retailer offering the card to a customer when they are in the store buying a coffee, the retailer invites them to start using a card, typically offering your 11th cup free. At the other end of the scale there are forms to fill out, which confidentially provides the company with significant information about the person. This may include:

  • Home address
  • Home and Mobile Phone numbers
  • Age
  • Household income
  • Interests
  • Family details e.g. single, married, children under or over a certain age
  • Occupation
  • Email address

In theory this enables the loyalty program to target information to the member and under strict Direct Marketing opt in guidelines, make offers to the members, which typically comes in the form of eDM’s and Direct Mail. The latter is a very expensive form of marketing as is normal advertising such as print, radio and TVC’s. For many industries and products this is tough business. How often do you buy a lawn mower, a TV or an iPhone? The marketing only works when you are open to buy. I recently purchased a new lawn mower, but it was the first one in over 10 years. If I had kept every lawn mower advertisement that arrived in my letter box trying to sell me one and looked at the creative, print and distribution costs, it might have been cheaper for them to give me a lawnmower. Of course all of this advertising is focussed on products that everyone is selling, there is very little focus on products that are unique. Everyone has a promotion on a printer, a TV, an iPhone which forces everyone to focus on price, heavy discounts and the consumer wins if they are looking for that product. Profits up the value chain are massively eroded through the competitive pricing and costs of marketing.

Data Mining and Business Intelligence are already used by some companies and very soon GeoSmart will be launching the much anticipated BIonaMAP we have discussed in many blogs in the past. This will allow companies to better understand their customers on the basis of the data provided, including the ability to view their customers and query their information in relation to the Department of Statistics mesh blocks and area units.

Canberra Income $100,000+

In this example we looked for   where the average household income in Canberra (yes we do Australia too) is equal to or greater than $100,000. If we were looking for loyalty members who had higher than average discretionary spending capability, this could be a very useful tool for target marketing. We could potentially make special offers by overlaying our loyalty card members in this SaaS (Software as a Service) application and then querying them from a combination of the information we have about them and the information the statistics department has about people in the area.

In the coming blogs I will get into more detail about what the implications are from the perspective of location, but like anything you need to start at the beginning and in many cases as I have outlined,  scatter gun marketing, throwing leaflets into letter boxes does not effectively target people who might change their behaviour in favour of your product or brand.

The key to loyalty is a relationship and this comes from engagement. You don’t engage well by putting something in someone’s letterbox. You engage by understanding who they are, what their needs are, when they are out and about and open to buy. As a retailer with a loyalty program you have huge amounts of information about your clients at your fingertips, which is untouched.

Here’s a simple example to finish this blog. Paper Plus not only supports Fly Buys, but they also have their own card called My Big Deal. They run promotions for people who use that card. Right now they have a sale on certain children’s books. If you buy the books using your loyalty card and they store that information, they now know (if they didn’t ask in their registration form) that you either have children or have a relationship with children, perhaps as a grandparent. So they know you buy children’s books. This is valuable information that you could take advantage of in your proximity based marketing application.

More on the location based aspect for apps is coming up, now that we have covered some basics. If this is of interest, please bookmark or subscribe. If you know of someone else who might be interested, why not send them a link? If you would like to discuss these concepts with us about your own business, please contact us.

September 20, 2011 Posted by | Australia Maps, Business Analytics, Business Intelligence, Business Tools, Data Mining, Distribution, geosmart, GIS, iphone, location based services, Loyalty Card, Mapping Applications, Marketing, new zealand, new zealand maps, Print Advertising, proximity based marketing, Radio Advertising, Retail, Retail Profit, SaaS, territory management | , , , , , , , , , , , , , , , , , , , , , , | 1 Comment

GeoSmart’s AA Real Time Traffic Solution beats the traffic for TV3 Commuter

GeoSmart has been developing the AA Traffic Service for a few years now, evolving the old Roadwatch Service to a modern dynamic service which is becoming more sophisticated all the time. Around 12 months ago we updated the Roadwatch website to include accidents, incidents such as slips and flooding, road construction and maintenance. This has made the site incredibly popular when there are storms, long weekends and for any motorists to whom time is important.

In recent times we have added real time traffic congestion flow and are transmitting this data to a number of car navigation devices including Navman, TomTom and the Garmin Asus Android mobile.

One of the most recent developments is the launch of TomTom’s Go Live 1000 and 1050 models with TomTom HD Traffic. New Zealand was the first country outside of Western Europe to launch HD Traffic, because of their confidence in the quality for GeoSmart’s Real Time Traffic information, delivered as AA Traffic. What is most significant and novel about the Go Live is that it comes with a SIM Card and because of this is able to get real time traffic anywhere it can receive a Vodafone connection. It can therefore show you live traffic congestion data overlaid on the road, pretty much anywhere in the country.

AA Traffic Congestion On TomTom

 

 

 

 

 

 

 

This week TV3 reporter Alistair Wilkinson put it to the test by commuting into the station from the Waitakere Ranges in West Auckland following the exact instructions from the TomTom based on current traffic conditions. As you can see in the video, he was competing with 2 other cars from the same location. One took the route that Google Maps recommended, the other took a popular route via the motorway and got a good run. In the news story Alistair was very surprised with the route which avoided the motorway. He said “This goes against every bone in my body to go this way to get to work”. Who won? Check the video:

AA Traffic Congestion Flow on the Roadwatch Website

April 1, 2011 Posted by | AA Maps, AA Traffic, Auckland, car navigation, driving, driving directions, gps, location based services, map tools, new zealand, real time traffic, satnav, tomtom, Uncategorized | , , , , , , , , , , , , , , , , | Leave a comment

GeoSmart Launches the Location Innovation Awards

At GeoSmart we believe that Location Based Services applications (LBS) on mobile phones and converged devices will be commonplace in 4-5 years time. We want to bring the future forward by challenging people to develop concepts around this space with the Location Innovation Awards. The overall winner will enjoy a trip to San Jose in California to attend the Where 2.0 Conference in May 2009.

There are four categories that may be entered. These are Social Networking, Proximity Based Marketing, LBS Games, and Widgets for the AA Maps web site. Our sponsors includeThe Wireless and Broadband Forum, Massey University, Tomizone, Sony Ericsson, TomTom, Geekzone, MyMobile Magazine and Vodafone New Zealand who have contributed wonderful prizes.

The competition launched on 6 October 2008 and entries must be in by 16 February 2009 which gives participants ample time to come up with their concepts.

A forum on Geekzone for the competition has been set up so that peple who need assistance or want to throw ideas around can do so. There will also be regular updates on the GeoSmart WordPress blog .

October 5, 2008 Posted by | gps, lbs, location innovation awards, new zealand, tomtom, web maps | , , , , , , , , , , , , , , , , , , , | Leave a comment