Reward Apps Are Providing Data for New Possibilities in AI Marketing

When an online giant such as Amazon makes one of those, “you might be interested in this” suggestions, it’s usually not completely “off.” A person ordering a pair of men’s sunglasses, for example, likely won’t be directed to the negligee department next. But recommendations are set to get even more personalized; based on intense scrutiny of an individual’s personal buying habits and the psychology around those habits. One of the tools that these analytical assessments will use are reward apps.

In the 2020s, many companies have finally come to accept that a lot of folks aren’t all that thrilled with most of their loyalty programs.

Too many are restrictive.

“Get 25 percent off your next purchase of X.” But what if I don’t want to buy X? Reward apps are sweeping into consumers’ lives precisely because they do away with restrictions and count everything one buys as “rewardable.” Download the app, scan or photograph a real-world or online receipt – for close to any item or service – and boom… your digital wallet starts filling with ‘points’ that can be exchanged for gift cards. The immediacy is attractive. Very quickly you’ve got enough points for a free coffee or an Amazon gift card.

Anyone who doubts people will be willing to swap their “personal” shopping data for free stuff isn’t paying attention. For a huge chunk of people under 40, this whole “privacy” thing is overrated. They “share” info – including about what they buy – all day long on social media. Why not get something for it? Reward apps know, however, that if the rewards aren’t good enough or if there isn’t enough choice, people won’t bother using them, so they bend over backward to make both the places you can earn points from and the rewards you can get as attractive as possible. You can earn credit for shopping at any grocery store, pet store, gas station, big-box store, CVS… the list goes on. You just have to scan or snap a pic of a receipt. And as noted, online receipts count, too.

The timeframe for uploading your info is likewise flexible. App users generally have about two weeks to scan and hit “send.” Users can grab a fast reward, or build up points as credit towards discounts and special offers that are constantly being added to the app’s reward list. Those with particular needs – think a couple with a new baby – can sign up for a diaper loyalty program in the app. The revolutionary aspect of this concept is that the rewards are genuinely wanted – as the app user picks them. And, by allowing everything to count toward points, the app is able to offer invaluable information to data harvesters.

This could be where things get interesting. When enough people are listing each and everything they buy, when they buy it and where… that equals real data. More than enough data, in fact, for an AI boosted analysis that provides corporations with information that can lead to streamlined production lines, focused marketing, better forecasting, improved sales, and operations planning, better supply planning, and a greater degree of stock and inventory control – all of which means savings for companies that trickle down to consumers as cheaper prices. Having hard data that, for example, a sports drink isn’t selling in New York but is doing great in Florida offers the manufacturer a bevy of choices that save the firm money.

It might take a few years, but on the consumer side, big data plus AI could mean we’re not too far away from that scene in Tom Cruise’s Minority Report where advertising is tailored to individuals in a very literal way. The app – coupled with AI – could easily begin to find patterns that could lead to messages such as this: “Hey Tom, the big game is Monday. There’s a sale at X on X. You have 450 points that could be used if you want it even cheaper. Interested?” or “Hi Susan, hope we’re not interrupting but it was about this time last year that you bought a birthday present for your niece. Click on this link if you’re interested in some of the gift ideas we have for you.”

Reward apps are proving that people are happy to share shopping data if properly incentivized. The variety of choices on how one wishes to be rewarded plus the ease of “anything counts” are the two biggest incentives. But we also know people don’t want too much choice. And we all appreciate a tip or suggestion from a trusted source. With AI, that trusted source is set to become a lot more trustworthy and therefore appreciated. It’s a simple idea, really: scan your receipts. But it’s an idea that could change everything.