Mobeam Puts Loyalty Cards on One Device

Cupertino, Calif. -- Recognizing a need for what it calls "loyalty card aggregation," Cupertino, Calif.-based Mobeam Inc. launched the numi key, a small, electronic key chain that allows shoppers to load all of their loyalty cards onto one digital device. The product was launched in mid-May and is available on Amazon.com for $34.95.According to Cincinnati-based loyalty marketing firm Colloquy, the average U.S. household is enrolled in 14 different loyalty card programs but only actively participates in 6.2 of them. The overall number of 14 cards per household is up 25% from Census data two years ago, says Kelly Hlavinka, a partner at Colloquy.Mobeam conducted focus groups and online surveys to determine market validation and sizing for the product, says CEO Chris Sellers. The company also executed extensive testing in the marketplace with consumers and retailers to determine its viability. "We did a lot of research among retailers to talk to them about acceptability, and we talked to consumers about what they thought the key was worth and what they would pay for it," Sellers says.The small device has a color screen with a set of control buttons and a red LED at the end. Users load their loyalty cards onto the key by connecting it to their PC with a USB cable and visiting Myloyaltycards.com. There, they can select from about 60 retailers on a pull-down menu and enter their loyalty card number to load as many as 50 cards onto the device. At press time, the list of retailers included Best Buy, Borders, Costco, CVS, Dick's Sporting Goods, Food Lion, Hallmark, Jewel-Osco, Kmart, Kroger, Petco, Sears, Staples, Toys 'R' Us, Ulta and more. For chains not on the list, consumers are encouraged to send the name of the retailer and a photo of the back of their card to support@mobeam.com so they can be added to the system.When consumers are asked for their loyalty card at checkout, they point the key at the scanner and push the button to activate the red LED. The device is controlled by patented software that converts the bar code to light that can be beamed to the scanner by the shopper or the cashier. According to Sellers, the key boasts a scan rate of 99.7%, a figure that's not only higher than the 97% industry standard of scan rate acceptability, but is also nearly twice the success rate of similar-minded smartphone apps that produce a picture of a bar code on the screen, which typically have scan rates around 50% or less, according to Mobeam research."Scan rate is a big issue," he says. "It has to work the first time because retailers are not going to tolerate any disruption in their operations environment." However, in the event that it doesn't work, pressing the down arrow on the device will display the loyalty card number for the cashier to enter manually.Hlavinka of Colloquy says retailers like the visual brand reinforcement or "mini-billboard" that a card, key fob or, to some degree, a smartphone application provide. "The purpose of retailers doing these programs is to stay top of mind when the customer has so many choices of where to shop for groceries or where to fill up for gas."Hlavinka says the numi key satisfies a great need for shopper convenience, since there is a troubling trend of so many loyalty cards per household. But it's just another alternative to the card, which retailers are moving away from, in general. Retailers are using a shopper's phone number as an ID or using smartphone apps, which have more advantages, according to her. She says the phone replaces the need to have to buy an additional device, the phone is always with the shopper, and applications can provide a more direct line to the consumer with opt-in messages."The watchout on the retailer side of things is 'out of sight, out of mind,' and are there other alternative devices that would lead to higher engagement and opt-in like on the mobile phone?" says Hlavinka.While combining loyalty cards is the initial function of the numi key, Sellers says it has a broader functionality that will include coupons, gift cards, membership cards and tickets to events. "Anything that is essentially a bar code-based currency is possible on the numi key," he says.The company is currently in discussions with retailers that are considering the key's potential to replace or augment their existing card-based systems, because it allows for highly targeted promotions. "Some retailers today send coupons or special offers directly to their loyalty cardholders, who then download them onto their cards. This is a digital, much more flexible way to do that," Sellers says. "And brand manufacturers stand to gain a tremendous amount by using this as a delivery medium for their coupons." For now, the company hasn't solicited any store distribution outside of Amazon, and is only lightly promoting the key until officials are certain that everything is working the way they want it to. Once they're satisfied, Sellers says the company will rely heavily on online promotion, especially social media. "We'll use every imaginable outlet, especially the deal-finders," he says.

Mobeam Puts Loyalty Cards on One Device

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