Loyalty program for cities

More than half of city dwellers want better communication with the authorities

04.11.2020 | Lightscape, New

Urban loyalty programs can help

According to a study by the Economist Intelligence Unit (EIU), more than 50% of residents would like to have more access to digital platforms through which they can communicate with local government. In addition, only a small part of the population provides feedback to city managers. The smart city market is growing rapidly, but solutions dedicated to communication and activation of residents, such as urban loyalty programs, should be an important part of the digital strategy.

According to the MarketsandMarkets report, the smart city technology market will value at $820.7 billion in 2025, compared to $410.8 billion in 2020.

– It is important not to forget in the process of digitisation that technology is intended to serve users, in this case residents. One of the most important areas in which technology can support local governments is communication and feedback. According to research, up to 98% of problems reported by users never reach decision-makers. We can see a similar phenomenon in cities. Obtaining feedback is one of the most important challenges in managing relationships, whether with a customer or a resident. The target group is often not motivated and reluctantly. The solution is mobile applications, which not only improve the process, but also offer benefits in exchange for taking part in the study, e.g. in the form of points or discounts on local services – says Krystian Dylewski, founder of start-up Blovly.

According to a Digital Care survey published earlier this year, 80% of smartphones are now used. Poles, so they can be a natural channel of communication with the locals. What's more, App Annie's quarterly reports report further increases both in terms of app downloads and total usage time. In q3 q. By 2020, as many as 33 billion apps have been downloaded, and the number of hours spent in mobile apps has increased by 25% year-on-year.

Deployments from abroad also show that applications can be a way to engage a wider range of residents. An analysis of how the problem reporting app works for Boston residents shows that it has helped to gain feedback from lower-income and student-age people much more effectively than phone or website contact.

CRM and loyalty programs now also for local governments

Recent years have been a time of development of solutions for cities modelled on those used by business for years to connect with the consumer. One of the most popular are loyalty programs, but not in the form of analog cards, but mobile applications. By rewarding purchases with a points system, m.in can encourage residents to use the services of local business. However, this is only one of the features offered by modern platforms of this type. Apps based on the concept of loyalty programs offer other benefits, such as the ability to communicate through surveys and access data on what city trading looks like. The model of common in business CRM (Customer Relationship Management) systems used to manage customer relations, therefore, similar solutions are created dedicated to local governments.

– Why apps based on loyalty programs? Because it's a market that's still growing dynamically, and that means one thing. Loyalty programs are an attractive product for the end user, that is, the customer, and in this case also the resident. According to ARC Market and Opinion, 59% Poles use loyalty programs. While the proportion of users who do so via mobile apps is constantly increasing, it is now 74%. As the global data collected by KPMG shows, 90% of millennials belong to at least one loyalty program.– explains Krystian Dylewski, Blovly.

Loyalty programs for cities – how to support local business

KPMG's analysis also shows that loyalty programs are an effective tool for attracting customers to specific stores or service points. Almost three-quarter (74%) of consumers try to choose those stores that reward for shopping with points. By translating business mechanisms, cities can support local trade and stimulate the development of selected areas, such as shopping streets, rewarding residents for taking advantage of specific points.

Data on the weight of gold

However, as Michał Dylewski, head of loyalty programs at Blovly, comments, this is only one of the levels at which such platforms help cities manage trading spaces. Combining applications with an AI-based analytics module allows local governments to make key decisions more consciously.

– Data from receipts scanned through the app is a mine of information for city managers. Local governments gain m.in. where purchases are made and where traffic is small, what is the average value of the basket and what categories of products most often land in it. Thanks to this, they can manage the commercial spaces in the city in a similar way as happens even in shopping malls and make decisions based not on estimates, but on specific numbers.

About Blovly

Blovly is a martech startup that provides modern solutions that help you communicate more effectively with your customers, as well as build loyalty and commitment to m.in. brands based on data collected from registered store receipts. So far, 137 million receipts have been scanned to collect authentic purchase data. Blovly operates on the basis of proprietary AI algorithms, allowing you to effectively collect and analyze feedback. Thanks to Blovly, as soon as the receipt is scanned using the app, the user receives rewards. Brands and local governments gain insight into valuable data about user behaviour and preferences.