SMS an integral part of innovative loyalty programs

Loyalty programs are battling to retain their value in the United States – both to consumers and the organizations and businesses that provide them. Originally the aim of loyalty programs was to offer rewards to ‘loyal’ clients to encourage them to spend more money with the company through successful use of SMS. They were rolled out across a range of industries and today it is possible to join a loyalty program when booking a flight, hotel or renting a car to buying plants at a local garden centre.

Realizing the need to retain existing customers and service them well, loyalty programs generally work on a point system whereby the more you buy, the more you earn and these points can be converted into products at some point. A fantastic idea but executed with corporate style, not really taking into account the needs of the customers that it services.

Today consumers are slightly fatigued with traditional loyalty programs, over burdened with seldom used loyalty cards and slightly confused as to how it all works. The avenues available to marketers and loyalty program managers are far more diverse than they were ten years ago and perhaps it is time to embrace the need for a paperless system. Enter the mobile phone and SMS text messaging technology into the communications field.

The folks at The Wise Marketer note in their white paper on the top ten trends for frequent flyer mile programs, the importance of moving to a digital sphere. Using the cellphone as the primary communication device has a lot of positive implications for loyalty program users. Firstly members will never forget their coupon or discount offer at home – it will always be with them at the point of sale. Members don’t need to remember their details or carry their cards – it will all be on their mobile phones. The biggest value that you can offer to any member of a scheme is to make it easy for them to claim their rewards.

The benefits to the loyalty program itself are immense. SMS text messaging is a far more affordable and efficient way to contact people than through the mail or brochures. By using the mobile phone and SMS text messaging as the primary form of communication, organizations remove all demographic and geographic barriers to entry. Nearly everybody has a mobile phone, all mobile phones can send and receive text messages and SMS technology is a trusted and proven technology. It is also immediate and highly effective with a marked increase in response rates.

Not only can text messaging be used to communicate with existing clients offering specials, promotions or SMS awards but it can also be used innovatively to recruit new clients with opening membership offers and invitations to join the program.

Reliable and proven SMS gateway providers can offer loyalty programs access to a world of potential new members. And they can ensure that text message delivery is measurable and secure. As more individuals enter the digital world of communication, loyalty programs of all types need to ensure that they are not left behind and that they embrace the expanded horizons that SMS text messaging can offer their organizations.