During an initial pilot launch involving seven of its locations, Mister Donut saw 3,200 customers join the mobile loyalty program, leading to the franchise’s extension of the program to the remaining 25 locations in El Salvador. Mister Donut’s efforts will allow for a deeper relationship with its customers, which will be appreciated by both parties.

“Growing businesses need a more personal connection with consumers than just a paper punch card or plastic card that is easily lost or forgotten,” said Manuel Contag, vice president of business development at Mozido, Latin America. “Mobile loyalty apps go with customers wherever they are and provide a huge opportunity for businesses to get to know their customers.

“Customers also have the opportunity to engage in return to let businesses know what they’re interested in and how they prefer to interact with their favorite brands, restaurants and retailers,” he said. “This will ultimately help businesses continue to grow in a way that is convenient and enjoyable for their customers.”

Solutions for today, tomorrow
Mobile financial service provider Mozido is powering the loyalty solution for Mister Donut.

Mozido collected in-depth market research on Mister Donut’s customers’ habits. Key insights included details on the frequency of restaurant visits, peak visit times and days, payment methods, actual dollar amount spent per customer in a period of time and table and order sizes.

With this information, Mozido was able to create a tailored mobile loyalty solution that organically fit into its existing customers’ behaviors.

The franchise plans to roll out the larger execution of its mobile loyalty program by January 2015.

Mister Donut’s efforts are looking toward the future by leveraging modern technology. While the punch card loyalty concept is outdated, a mobile loyalty solution allows users to track their own points and progress anywhere and at any time.

Through the program, Mister Donut can group customers together according to preferences and visit habits. With a solid understanding of its individual customers, the franchise can provide its guests with personalized, contextually relevant communications and offers that are more likely to encourage increased visits.

Mister Donut can also create upsell opportunities by using the collection and redemption of rewards points to encourage customers to try new dishes.

The next step for the program will be the integration of mobile payments, which will come later.

Loyalty driving conversion
At the beginning of this year, Dunkin’ Donuts took its DD Perks loyalty program to a national level.

The DD Perks program was then fully integrated in the Dunkin’ Donuts mobile app by early February, enabling users to earn rewards and pay for purchases at the coffee and baked goods chain from their mobile phones. The strategy put Dunkin’ Donuts in competition with Starbucks, which at the time was seeing close to five million mobile transactions every week (see story).

Frozen confectionary treat Dippin’ Dots recently launched what the brand claims is the first fully interactive mobile site that integrates augmented reality with a loyalty program to satiate consumer cravings for genuine connections.

Using Rocktops Digital Media’s patented Bubandu platform and augmented reality viewer application, Dippin’ Dots customers are able to earn points by scanning markers on product packaging which can be exchanged for free ice cream and personalized merchandise through the new Dot Crazy! Rewards program. The superimposition of digital data, videos, images and sound over-real world images and physical objects has been quickly becoming a marketing phenomenon as augmented reality tech is used to deliver new immersive experiences that mix engagement, information and fun (see story).

Mobile loyalty enables more dedicated customers and increased conversion.

“Mobile loyalty is convenient and incentive,” Mr. Contag said. “Mobile phones, especially in developing countries like El Salvador, have empowered consumers with the ability to easily stay connected to family, friends and their favorite brands and retailers. 

“Couple the convenience of mobile phones with the incentive to get rewarded for visiting their favorite stores and restaurants and business now have customers who see the value in not only returning but using the app to stay connected and earn rewards,” he said.

Final Take
Caitlyn Bohannon is an editorial assistant on Mobile Commerce Daily, New York