Customer relationship management and database building initiatives within the mobile space can and will be a complete disappointment if one basic factor is not acted on: user-specific data.

According to mobile loyalty and database/CRM experts, most CRM approaches today are great at collecting data and generating management reports, but are not as good at applying it in real time to enhance a customer's experience.

"What does this mean for mobile marketers: everything," said Alan Sultan, founder of Acuity Mobile, Greenbelt, MD. "Given the personal nature of the mobile medium, and the limited form factor, systems need to be in place to apply in real-time customer supplied preferences and other data collected as part of a multichannel CRM strategy.

"This results in a win-win for the marketer and the consumer, a more relevant and personalized interaction with a brand on a mobile device, resulting in higher response rates and ultimately enhanced return on investment," he said.

For example, getting real-time access to names and address as well as traditional household data based on an initial text interaction is the way to go.

"This allows marketers to establish scalable business rules which ensure that the consumer gets offers and content that truly matches their interests and demographics and see a marketers mobile solution as a true, ongoing benefit," Mr. Sultan said.

According to Rodrigo Rivero Borrell, partner and director of Codilink Mexico, mobile and CRM can no longer be thought of separately.

In fact, the two go hand in hand, because of how personal the mobile phone is and the intimate connection to consumers it provides marketers.

"Benefits that get to your hands via mobile and do not require additional cards or paper coupons make it easier for the consumer," Mr. Borrell said. "A clever managing system offers flexibility and immediate response to the customer's needs without even having to modify coupons/cards."

Another benefit is the brand also gets a very clear map of what is working and what is not.

Vontoo has a very different approach to mobile loyalty programs.

Typically, mobile marketing loyalty programs involve text message communications. But Vontoo's approach uses voice.

"No mode of communication is more personal than the human voice and connecting a mobile device with voice creates a much more personal relationship with the consumer," said Steve Kremer
business development manager at Vontoo.

"Mobile marketing using voice also allows for communications that are instant, time-sensitive and on-the-go, which can help make consumers feel important and catered to," he said. "In order to remain competitive and meet the needs of customers, mobile marketers will need to empower their clients with the ability to collect and manage permission in direct voice marketing campaigns.

"They will need to give the power to the consumers; instead of blasting messaging widely, marketers will let the consumers take advantage of what messaging they want to receive. By giving consumers the power to choose the messaging they receive, marketers will further enhance relationships and develop more loyal customers."

Kevin Grieve, CEO of Mocapay, said mobile loyalty and CRM initiatives can help drive new customer acquisition through product offers and other promotions.

He also said that in the future mobile will take the retailer and customer relationship to a level that doesn't exist today.

"In the future mobile communication will enable merchants to see the ultimate value in creating a world-class mobile loyalty program for their customers," Mr. Grieve said.

Mobile loyalty initiatives are important for new customer acquisition and increased retention through mobile marketing and information services.

Additionally, accepting mobile payments at the point-of-sale is also a great way to manage the relationship with customers.

Case studies
The Xavier University athletic department sent voice messages to men's basketball season ticket holders, recorded by head coach Sean Miller, thanking fans for their support and encouraging them to renew season tickets.

This call provided a "treat" to fans -- recognizing them, letting them know they are valued, and making them feel more personally connected to the team.

Starbucks Coffee Co. is running a loyalty program based on 2D bar code coupons deployed via SMS.

The coffee giant tapped digital technology provider Codilink, which specializes in mobile services helping companies to offer loyalty programs to their clients.

The campaign is currently running in Guadalajara and San Luis Potosi, Mexico, but based on the 60 percent mobile coupon redemption rate, it is likely to be expanded.

Foot Locker's mobile VIP program is also an example of CRM.

VIP members get advanced notice of new product arrivals and get offers and content from Foot Locker partners.

Membership is customizable so users can choose preferences to receive more info about the brand and products they want to hear about.

Users of the program get coupons and offers sent to their phone.

Lane Bryant also offers a mobile loyalty program that customers text into to receive offers, incentives and updates.

When IKEA Seattle launched a mobile loyalty program in June to build a database of people interested in receiving discounts, the home furnishing retailer never even imagined that 23,000 consumers would sign-up.

The text-to-enter loyalty program is a means for IKEA to start a dialogue with interested consumers. BCode is powering the texted discounts and has found that there have been more than 15,000 offer redemptions to date.

"In our world, mobile permits the creation of a conversation with the consumer, based on their terms and tailored to their device," Mr. Sultan said. "Of equal importance to this approach is user privacy.

"Opt-in and disclosure language must be transparent and complete compliance with MMA guidelines are an absolute necessity," he said.