Title:	ENABLING MOBILE CUSTOMER RELATIONSHIP MANAGEMENT FOR SMALL AND MEDIUM-SIZED ENTERPRISES
Author(s):	Carolin Löffler, Michael Hettich
ISBN:	978-972-8939-24-3
Editors:	Sandeep Krishnamurthy, Gurmit Singh and Maggie McPherson
Year:	2010
Edition:	Single
Keywords:	Mobile customer relationship management, mobile marketing, permission marketing, loyalty services, reward cards
Type:	Short Paper
First Page:	155
Last Page:	159
Language:	English
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Full Contents:	click to dowload
Paper Abstract:	Mobile marketing is becoming more and more important for customer relationship management. Consumer retention requirements are constantly growing. In 2008 over 2.7 billion US-Dollars were spend on mobile marketing activities worldwide. This channel is mainly used for mobile advertising. Due to new mobile phones with GPS functionality and better and faster ways of transmitting data (e.g. via UMTS, EDGE and WLAN hotspots) new location based services emerge. Mobile applications can foster customer relationship management based on loyalty programs. Many big companies use loyalty or reward cards to collect customer data and create consumer loyalty by customized services. Existing loyalty programs (e.g. Tesco clubcard in the UK or Payback in Germany) are based on smart cards storing customer identification and additional data. Two issues can be identified: First, only very few major retailers are organized in well-working coalition programs. Second, many small retailers establish loyalty programs based on paper cards – the effect of these programs is not measured, consumer insight is not possible due to missing data. A new system called mBonus discussed in this paper opens doors to solve these issues. With mBonus consumers can collect loyalty points at retailers using their mobile phones. After reaching a certain amount of loyalty points (loyalty points cannot be traded between shops) the consumer receives a bonus (e.g., one coffee for free) and the collection process starts over again. All relevant data is accessed via the phone and stored on a central server instead of a plastic or paper-based card. The system especially meets the needs of small and medium-sized companies. Retailers gain a competitive advantage and improve customer relationship management by analyzing consumer data. mBonus is strongly based on permission marketing to foster customer acceptance. Communication with consumers is customized according to their individual preferences.
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