Why Miconex chose Fidel to launch a city-wide loyalty programme rewarding locals for shopping locally
With Colin Munro, Managing Director at Miconex
- Perth, Scotland
- Cities live in
- Perth, Scotland
Looking for The One
Miconex had a simple mission: to reward customers for shopping locally while helping city centre businesses. So they teamed up with the city of Perth to create a city-wide rewards programme. While the idea sounded straightforward, Miconex faced a number of challenges. Local businesses used different of Point-of-Sale (POS) systems, making integration with new software difficult and expensive. Miconex also needed a solution that could easily integrate with a range of POS systems.
In addition, any time an organization handles card payments, there are Payment Card Industry (PCI) requirements which must be met. This meant Miconex would need to be PCI compliant before they could run a loyalty programme that incorporated card payments. This could cost upwards of £10,000 and would require annual on-site audits. The costs were quickly adding up.
Colin Munro, Managing Director at Miconex, knew that consumers now expect instant gratification and personalised service. Customer experience needed to be at the core of the programme. Multi-step solutions such as plastic loyalty cards, QR code scanning or apps just wouldn’t cut it.
“Fidel have provided fantastic ongoing support for the project which has enabled us to quickly test this new smart city rewards programme. The data generated from this card-linked programme enables a new understanding of how consumers interact with cities!”
A Need for Speed… and easy Integration
After ruling out building the product on their own due to high costs and compliance risks, Miconex considered outsourcing the responsibility to large agencies. However, they quickly realised that they would be hit with large monthly management fees. So the team looked to B2B marketing offer platforms, but found many companies had non-flexible data sharing agreements (DSAs) which would require their offers to be shared with possible competitors.
Miconex came across the idea of card-linking through business partner, Stampfeet. That’s where Fidel comes into the story. Setting up a card-linked loyalty programme means directly linking customer debit or credit cards to a programme. Customers get a seamless checkout experience and instantly earn points when they shop at participating retailers with their linked payment card. Miconex customers would no longer need to remember loyalty cards, or download apps or codes on their phone. While the user experience sounded simple enough, it was equally important Miconex was able to tackle their technology challenges.
By using Fidel’s card-linking API, the Miconex team could easily connect all of their merchants using a variety of POS systems all through a single API, making integration simple. They wouldnʼt have to worry about high-costs, integration fees, employee training costs or expensive hardware. And when it came to PCI compliance, Fidel was already compliant.
Happy customers, happy businesses
While clearing technological hurdles meant Miconex could get their programme off the ground in just 16 weeks. In the first seven months since launch, Miconex’s Mi Rewards programme now has over 60 local businesses in their Perth city-wide loyalty platform and contributed over £140,000 in increased spend to the local economy. And they’re just getting started!