Transcript of the episode: https://www.youtube.com/watch?v=fKYBQdA-CbU

KN: On loyalty schemes at night – welcome to another episode. Katarzyna Nawrocka and my guest today, Agata Kisło.

AK: Good morning, Kasia. A warm welcome to you all.

KN: We’ll be talking about mobile apps, but we’ll be approaching the topic from a specific angle. Which one?

AK: Today we’ll be talking about mobile apps in loyalty schemes. This is a very important topic, as mobile apps are part of our everyday lives. They are part of our daily lives and have, in fact, become an integral part of our lives, as we are rarely without our smartphones these days. We have everything on our smartphones, and when it comes to our everyday shopping, mobile apps are very important because of the benefits they offer.

KN: Are we going to focus solely on the food industry – have I understood that correctly?

AK: We’ll narrow down the topic of the food industry, as I’m going to talk about the apps we use in our daily lives – not just on an „ad hoc” basis, but every single day.

KN: Let’s consider how many people actually use the app. Are mobile apps replacing cards?

AK: That’s not entirely the case. In the food retail sector, we have 14 loyalty schemes, 11 of which have their own mobile app. As for plastic cards, they’re still in use. They’re used in shops such as Biedronka, for example, so I think that mobile apps aren’t so much replacing plastic cards as acting as their equivalent, although in some apps we can also see the virtualisation of such cards.

KN: Are there any loyalty schemes where we can use both a card and an app?

AK: Of course, one such loyalty scheme is, for example, the Topaz retail chain’s loyalty scheme. It has an app which displays a digital version of the plastic card with the barcode. It also has many other features that are very useful for everyday shopping. It offers a shopping list, promotions via the mobile app, and even the ability to browse the in-store leaflet.

 KN: But when we consider other aspects of life, we notice that older people use such things less often – not to mention the fact that they use the internet less frequently, but even mobile apps or other programmes, for example. Perhaps this is also because they aren’t smartphone users, at least not as frequently as the younger generation. How can we encourage them to see that it’s worth it?

AK: Definitely yes. The current trend shows that more young people use mobile apps than older people.

 KN: And we carry out analyses and research of this kind, which enable us to confirm that older people do indeed still shy away from mobile apps.

AK: This also demonstrates the usefulness of smartphones themselves.

KN: And we can safely say that these mobile apps used in loyalty schemes are simple and intuitive enough that any of us can understand how they work and simply use them.

AK: Yes, the apps are designed to be very intuitive. Above all, they’re designed so that users can find what they’re looking for. They might find a discount on a particular product in the app, a leaflet featuring products from a particular retail chain, or a promotional voucher.

KN: We’re talking about how apps are gradually replacing those plastic cards, so we’re sort of constantly moving within this digital world. Tell me, is there any research showing how this has developed over the past few years?

 AK: Yes, the analyses we carried out here in 2016 showed that 38 per cent of people were using mobile apps. By 2017, this figure had risen to over 50 per cent. In 2018, it was as high as 60 per cent. And I think this upward trend is also evident among users of both the internet and apps, as well as in the trend which tells us that people like to shop and enjoy the benefits that come with shopping.

KN: Who doesn’t like them? And how can we categorise mobile apps? Are there different types?

AK: Mobile apps can essentially be divided into two types. I’ve already mentioned the first one, as it’s the sort of app that mirrors a website within its system – one where we can log in – and it will also replicate the plastic card we carry in our wallets. The second type of app, on the other hand, will complement the website’s offering; it will not replicate the plastic card, and indeed the plastic card does not function at all within the system of what I can confidently call a modern app. After all, we must also note that app users are people who enjoy the latest innovations. And the more benefits an app offers, the more features it has, the more willing people actually are to download it and use it.

KN: How has the way we identify ourselves in programmes changed, from the days when we only had that plastic card to now, when most of us use this mobile app?

AK: In reality, this identification process is similar across different retail chains, as it usually involves a scanner at the till reading the code displayed on your smartphone screen once you’ve opened the relevant app. You show this code to the till assistant, and they scan it. This will be either a QR code or a code from the plastic card that we have in the app, a digital version of which is displayed within the app. However, we should also note that there is no such thing as a plastic card with a QR code. Plastic cards usually have barcodes.

KN: Right, but what about people who previously used only those plastic cards?

AK: As I also said, plastic cards are still in use; it’s not as though these apps have replaced them…

KN: We’re not obliged to.

AK: No, we’re not at all obliged to download and install such apps on our smartphones if a particular retail chain offers a plastic card and we’re interested in using that card in the traditional way; however, a great many retail chains, and as I said, the trend is that these apps are becoming increasingly popular, and more and more retail chains are offering apps exclusively, because they offer more possibilities – we can see the points accumulated in the app in real time, and because such apps provide more benefits to the end user.

KN: What about online shopping? Do these apps allow us to shop?

 AK: There is one app that allows us to shop. It is the Polomarket retail chain’s app. As this app actually allows us to shop online, we can also make payments for these purchases directly within the app. However, many apps redirect users from their own system to a website specifically for online shopping, such as the Lidl shop.

KN: When I shop online on the shop’s website, do those points count towards my total on the mobile app?

AK: Exactly, because points are awarded in the mobile app – of course, it all depends on the terms and conditions of the app in question, it all depends on the system – essentially a points-based system – whether it’s a points scheme, a cashback scheme or what’s commonly known as ‘money back’; these points are credited directly within the app, and we can see them in real time.

KN: Can we use this app to make payments? Can we treat it as our own e-wallet?

AK: The best example here is the Carrefour retail chain’s app, which offers ‘scan and go’ functionality. Thanks to this feature, users can shop whilst they’re in the shop by scanning products using the app’s scanner, then completing their transaction at dedicated checkouts or paying online. However, I think this is such a broad topic that it’s worth discussing it in much greater detail.

KN: It’s Agata here. I’m holding you to your word, and so, ladies and gentlemen, we now have Agata’s assurance that she’ll be back in the next episode and we’ll be talking more about mobile apps. So, thank you very much for joining us today, and see you soon.

Thank you very much.