For the shopper, a purchase becomes a two-stage process, requiring them to fish around in their wallet for their loyalty card or find its digital equivalent on their phone.
For the retailer, it means added complexity. They usually have to install some kind of data capture system at the point of sale to recognise the card and capture the valuable customer data.
“Then they pay with that card and get the reward automatically. So it turns a two-step process that's high friction into a one-step process,” says McMullen. “They simply pay, get a real-time message to their phone to say, you are entitled to a discount or some frequent flyer points, whatever it might be.”
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