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Code-Free Loyalty Programs

Uber UX Platform Eliminates Time-Consuming Signups for Seamless Rewards

— June 15, 2016 — Tech
While many loyalty programs require time-consuming sign ups and the inputting of codes to redeem rewards, rideshare platform Uber is offering a program called UX that foregoes the traditional loyalty interface.

The brand has teamed up with Capital One to give riders that connect a Capital One Quicksilver credit card to their account a free ride every tenth one taken. Users don't have to sign in, select a specific setting or even put in a coupon code to redeem. Instead the Uber app is set up to recognize if the consumer is using a Quicksilver credit card and apply the rewards automatically.

Keeping up with a loyalty program can be a large time commitment as consumers are asked by the brands to collect codes or discount offers and actively redeem them themselves to collect. The Uber UX does the work for the consumer, making earning the rewards a seamless transaction.
Trend Themes
1. Code-free Loyalty - As more brands seek frictionless customer experiences, opportunities abound for loyalty programs that use technology to automate rewards redemption and eliminate signups.
2. Automatic Rewards Recognition - Using customer data and partnerships with brands like Capital One, innovative platforms like Uber can automatically recognize and reward customer behavior without any effort on the consumer's part.
3. Seamless Transactions - With consumers increasingly demanding speed and convenience, companies that can create seamless, frictionless transactions and simplify complicated processes have an advantage in the loyalty space.
Industry Implications
1. Rideshare - Rideshare operators like Uber are carving out a valuable niche in the loyalty market by using their app-based platforms and partnerships with financial services providers to create automatic, code-free loyalty programs for riders.
2. Credit Card - Financial services providers like Capital One that can partner with companies like Uber to offer automatic rewards recognition for customers have an opportunity to differentiate their offerings and create stickier relationships with their cardholders.
3. Retail - As consumer expectations for frictionless experiences grow, retailers and other consumer-facing businesses are expected to experiment with code-free loyalty programs that use technology to deliver more seamless transactions and rewards experiences.
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