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PayBack launches mobile loyalty app

Starting this week, German consumers have access to a new mobile phone application, allowing those who shop with the Payback loyalty programme's partner stores to use their iPhones to redeem customer-specific coupons.

The mobile app also gives users the opportunity to collect Payback points through regional promotions - for example, when making restaurant reservations. The system aims to makes it easier for customers to collect more points than before, according to says Burkhard Grassmann, a spokesman for Payback.

Customers can also use the new app to get updates about their points balance, and to identify the locations of (and quickest routes to) all Payback partner stores.

According to a recent Payback survey, 35% of members are likely to own a smartphone by the end of 2010, which means that the programme's partners will be able to offer event-based, localised campaigns to potentially millions of consumers. For example, when the first snow falls in Munich, local merchants could use the app to send special offers for winter tyres to members in and around the city.

The Payback iPhone app also enhances paper coupons as well as online coupons by enabling members to save mobile vouchers (up to ten-fold points) for their purchases or, for example, a 50% discount on products purchased.

The points earned are automatically credited to the customer's loyalty account as soon as they present their Payback card at the merchant's checkout. There is no need to scan in or display coupon codes at the checkout (as they are linked to the member's account).

The mobile application launched with coupons from ten major Payback partners including Aral, dm-drogerie markt, Galeria Kaufhof and real. Others are expected to follow soon.

Available as a free download in the Apple App Store, the Payback app can also be used by new customers to register for the loyalty scheme, and is expected to be made available on other smartphone platforms during 2010.

Sources: Payback / The Marketing Factbook.
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