Monday, November 05, 2012

Will Passbook Transform E-Retail?

I haven't upgraded my iPhone to the new OS system so I haven't had a chance to try out the Passbook app. After reading this article on AdAge, I would be curious to know who has actually used this app! Just so that everyone is on the same page, Passbook is an app for receiving, managing and using offers, tickets and loyalty points. The benefit of Passbook is that this app addresses a real problem -- coupons just don't work very well. Now, brands have a direct to consumer channel to deliver offers right into customers' pockets so that there is no waste, no coupons forgotten at home, and no missed opportunities. Passbook apps give the brand a persistent presence on the most personal device in the consumer's life; in-app notifications of new offers have the ability to re-engage customers. Additionally, one fun fact I picked up from this article is that 34% of reward points go unredeemed and expire, accounting for $16 billion in point value. That means that more than a third of loyalty programs represents wasted effort by the brand and undelivered value for its customer. With Passbook, loyalty points are updated in real-time; customers can see immediately how many they have, and can redeem them as easily as swiping their phone.

Read more here: http://adage.com/article/digitalnext/forget-e-wallet-apple-s-passbook-transform-retail/237957/

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