Tuesday , 14 August 2018
Home >> Mobile & Wireless >> Has a U.K. company figured out how to fix the loyalty problem with its mobile banking app?

Has a U.K. company figured out how to fix the loyalty problem with its mobile banking app?

One of the longest-running retail problems involves loyalty points and gift cards and the fact that shoppers tend to either forget about them or find them too much of a hassle to redeem. An unredeemed reward is one that offers no incentives and changes no behavior. Gift card exchange sites were an attempt to address the problem, but shoppers still find the effort too great.

A mobile program in the U.K. called Flux takes an interesting approach, one where shoppers are instantly (well, within a few seconds) given the cash value of a reward through a direct deposit to the shopper’s bank account. Because the interaction is relatively effortless, shoppers receive all of the promised awards.

The way it works, according to Flux CEO Matthew Cusden-Ross, is that Flux is integrated into bank mobile apps. When shoppers sign up for their bank, they have the option to activate the free service. There are some requirements. Shoppers must use a payment card associated with the bank as well as select a bank account already associated with that card.

The next step is that a shopper must engage in the incentivized behavior, such as purchasing a specific product or making a grocery total purchase of a required size. By marrying data from the bank (authenticating the shopper) and from the merchant’s POS (authenticating that a qualifying purchase has been made), Flux converts the incentive into cash (20% off a $10 item means $2 in a cash deposit) and makes the deposit.

Has a U.K. company figured out how to fix the loyalty problem with its mobile banking app?

One of the longest-running retail problems involves loyalty points and gift cards and the fact that shoppers tend to either forget about them or find them too much of a hassle to redeem. An unredeemed reward is one that offers no incentives and changes no behavior. Gift card exchange sites were an attempt to address the problem, but shoppers still find the effort too great.

A mobile program in the U.K. called Flux takes an interesting approach, one where shoppers are instantly (well, within a few seconds) given the cash value of a reward through a direct deposit to the shopper’s bank account. Because the interaction is relatively effortless, shoppers receive all of the promised awards.

The way it works, according to Flux CEO Matthew Cusden-Ross, is that Flux is integrated into bank mobile apps. When shoppers sign up for their bank, they have the option to activate the free service. There are some requirements. Shoppers must use a payment card associated with the bank as well as select a bank account already associated with that card.

The next step is that a shopper must engage in the incentivized behavior, such as purchasing a specific product or making a grocery total purchase of a required size. By marrying data from the bank (authenticating the shopper) and from the merchant’s POS (authenticating that a qualifying purchase has been made), Flux converts the incentive into cash (20% off a $10 item means $2 in a cash deposit) and makes the deposit.

Has a U.K. company figured out how to fix the loyalty problem with its mobile banking app?

One of the longest-running retail problems involves loyalty points and gift cards and the fact that shoppers tend to either forget about them or find them too much of a hassle to redeem. An unredeemed reward is one that offers no incentives and changes no behavior. Gift card exchange sites were an attempt to address the problem, but shoppers still find the effort too great.

A mobile program in the U.K. called Flux takes an interesting approach, one where shoppers are instantly (well, within a few seconds) given the cash value of a reward through a direct deposit to the shopper’s bank account. Because the interaction is relatively effortless, shoppers receive all of the promised awards.

The way it works, according to Flux CEO Matthew Cusden-Ross, is that Flux is integrated into bank mobile apps. When shoppers sign up for their bank, they have the option to activate the free service. There are some requirements. Shoppers must use a payment card associated with the bank as well as select a bank account already associated with that card.

The next step is that a shopper must engage in the incentivized behavior, such as purchasing a specific product or making a grocery total purchase of a required size. By marrying data from the bank (authenticating the shopper) and from the merchant’s POS (authenticating that a qualifying purchase has been made), Flux converts the incentive into cash (20% off a $10 item means $2 in a cash deposit) and makes the deposit.

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