Loop has partnered with ID TECH, an established leader in the payments industry, to offer an advanced tap engagement solution — one that allows Loop to reach customers through their mobile devices using digital wallets and passes. This new access is made possible by combining Loop’s cloud-based Fobi device with ID TECH’s NFC device: PiP.
Many people have heard of Apple Pay and Google Pay — you could be using near-field communication (NFC) right now for contactless transactions. However, few of us know about Apple Value Added Service (VAS) and Google Pay Smart Tap, which are technologies that are “added on” to enhance the digital wallet experience.
Loop implemented this technology to create personalized digital wallet loyalty cards for its clients to offer to their customers. Now, shoppers can use their phones’ native NFC technology to communicate payment and loyalty data stored in the mobile wallet at various points of interaction — all in a single, simple tap.
Our debut at the Rockwell Automation Fair showcases Loop’s successful mobile wallet engagement using the PiP, Fobi, and a POS printer — a demonstration of how mobile wallets can deliver fast, natural consumer interaction in physical locations.
Industry Pain Points: Suffering Loyalty Programs
Loyalty and engagement strategies tend to struggle because retailers are missing the ability to connect shoppers to actual transaction data quickly and efficiently.
With the emergence of contactless card issuance and mobile wallets, the payment world is placing a significant emphasis on contactless acceptance. In fact, Apple Pay recently surpassed Starbucks as the most popular mobile payment platform in America.
But it is crucial to look beyond its use as a payment and airline check-in solution. Retailers should be seeking ways to utilize contactless technology to deliver a more enjoyable customer engagement experience at every touchpoint possible.
Issues for Retailers Are:
1. Siloed loyalty data
In some cases, retailers have loyalty programs spread across multiple providers or properties. This data is often not aggregated, leading to a disparate view of their loyal customers.
2. Limited loyalty data
Right now, transactional data defines a customer’s loyalty. But their path to purchase is just as informative: what happens before and after the transaction? WHO influences their spending? Transaction-based loyalty targets the spender, even though they may not be the person who is the influencer or decision-maker in the shopping experience.
3. Limited adoption and accuracy
Reliance on manual input of information
Manual input is slow and error-prone, especially when communicated verbally or handwritten. The data is often abused and inaccurate (e.g., fake or out-of-date email addresses).
Physical loyalty cards pile up and become a nuisance. Many of us have a stack of them in our wallets — stamp cards, grocery rewards and gym membership cards, for example. During the transaction, customers must use this loyalty card, plus their payment card. This slow and inconvenient process makes loyalty programs unappealing.
An in-app experience is more natural but suffers from adoption. Shoppers are resistant to install an app for every loyalty program due to their prioritization of mobile storage. Additionally, remembering to use the right app at the right location and at the right time often becomes a challenge.
Issues for consumers are:
1. Lack of ease
The more work that is involved in signing up and claiming rewards, the less inclined people are to sign up for loyalty programs.
2. Lack of immediacy
Traditional loyalty programs involve a point system that lead to an eventual reward. However, because customers are slow to reap benefits, their interest and usage are limited. This effect goes against retailers’ goals of using loyalty to maximize wallet share.
3. Lack of rewards
Currently, retailers only grant awards through transactions. In retail spaces such as malls and casinos, they should encourage more customer visits with longer dwell times. Rewarding participation ultimately leads to more purchases.
What Does Loop's Tap + Insights Solution Solves
Many retailers have loyalty programs in place to increase customer spend and retention. However, there are still several obstacles for both retailers and customers to these legacy solutions. Loop solves this!
Benefits to retailers:
1. Aggregated data
Incorporating Loop’s AI automatically aggregates data — connecting the customer’s shopping behaviors across the retailer’s platforms and properties.
2. Detailed data
With a quick and convenient tap, a retailer can interact with customers at more points of their shopping journeys, creating a total understanding of their preferences. They can now see visitors’ movement before and after a transaction, their overall dwell time, and who influenced the purchase behavior. Creating an environment where all visitors check in identifies their roles in the shopping experience. Now, retailers can offer the right rewards to the right customers (e.g., decision maker, spender, influencer).
3. Accurate and easy adoption
Automatic input of information reduces error and increases the willingness to opt-in. Because it is merchant-independent, with the option of being POS agnostic, this tap solution is also scalable.
Benefits to customers:
1. Efficient experience
Customers no longer have to worry about enrolling in a retailer’s digital loyalty program at the time of purchase. With just one tap, they are automatically enrolled using information stored in their phone’s contact card. When beacon-enabled, the pass reminds a shopper that they are close to the store; and when tapped, the correct pass is automatically extracted from the wallet.
2. Secure customer experience
Supported and hosted by reputable Apple VAS and Google Smart Tap, customers can feel assured that this data exchange is safe.
3. Personalized promotions
Customers benefit from promotions based on a more holistic understanding of their shopping behaviors. Seeing their entire shopping journey allows retailers to effectively market, and ultimately, drive higher spending.
Loop's Tap Solution as a Value-Added Service
The debut at the Rockwell Automation Fair demonstrates the potential of our tap solution in the non-payment physical world.
In November 2019, we piloted our tap solution at the Rockwell Automation Fair in Chicago — to determine its perceived value to both users and vendors. To do this, we created a scavenger hunt by placing a device at different booths. People received raffle entries based on how many times they tapped. The activity was received with enthusiasm! As one vendor shared, “It picked up our traffic at the booth and was very good for engaging customers.”
Loop’s CSO David Salisbury explains, “we set out to create a solution that has very few barriers to adoption. Something that is user-friendly, but also trusted. Phones are people’s most trusted device, and they won’t hesitate to use it when there’s a value to them.” More customers will be inclined to opt into retailers’ loyalty programs — and the contactless device makes it easy. One simple tap unlocks highly detailed customer data for the retailers, which they can action to develop personalized promotions and engagement right away.”
Sometimes, you have to see it to believe it. Here is a video presenting our tap solution at the Rockwell Automation Fair:
The Rockwell case study is an excellent example of the speed and convenience of tap technology. The PiP device, when combined with Loop’s Fobi, allows for not only immediate reward offerings and redemption, but also centralized loyalty programs and seamless check-in at events. Paired with loops detailed transaction information, we have full visibility into 360 customer behavior and resulting transactions.
What Does the Future Hold?
Loop’s Fobi AI device compiles and actions customer data for marketing purposes that lead to higher spend. Connecting with the PiP device makes the customer/retailer interaction faster, easier, and available at more points of the shopping experience.
ID TECH has over a million contactless devices deployed that are compatible with Apple and Google’s mobile wallets. Market access and brand reputation assist Loop’s first-to-market opportunity.
Loop looks forward to showcasing its tap solution at the National Retail Federation (NRF) Retail Show in New York in January 2020 — the world’s largest retail expo. You can find Loop at ID TECH’s booth #3378! This event operates as a global discussion on innovative, futuristic technologies that are anticipated to change the industry.