THE ROLE OF BRANDING IN MOBILE LOYALTY PROGRAMS

Abstract

Introduction. Emotions from brand interactions become the foundation of long-term relationships with consumers and contribute to building a strong market position in conditions where competitors can quickly copy a product or service. This drives enterprises to search for new meaning in forming a unique brand identity, layering new attributes to build a multifaceted brand that becomes a lovemark. It is the implementation of a mobile loyalty program as a consumer engagement tool that requires well-considered branding. Reflecting the brand archetype and its values in the loyalty program, adapting the identity and naming in order to make consumer participation organic and authentic — this is the core task of mobile loyalty program branding for an enterprise. This tool is often either completely overlooked by enterprises or implemented incorrectly through simple replication of the existing corporate brand. Hence the need to define the role and place of branding within a mobile loyalty program as a means of enhancing customer engagement.

Purpose. The purpose of the study is to substantiate the role of branding as a foundation for building an effective mobile loyalty program in order to create long-term relationships between an enterprise and its customers, which will allow reducing the costs of customer retention and sales promotion.

Materials and methods. The research materials include: 1) scholarly contributions by Ukrainian and foreign researchers describing their scientific and practical studies in the field of branding and mobile marketing, particularly regarding mobile loyalty programs as elements of an overall marketing strategy and online promotion; 2) statistical data for analyzing market dynamics, consumer preference trends, and analytical data for tracking metrics related to consumer-enterprise interactions.

In studying this topic, the following scientific methods were employed: analysis and synthesis (to examine mobile loyalty programs in enterprises across various industries); grouping and classification (to identify fundamentally different approaches to branding and building customer relationships); systematization and generalization (to process data from statistical authorities); the graphical method (to visually represent the data obtained during the analysis); and logical generalization of results (to formulate conclusions).

Results. The scientific article substantiates the role of branding as a strategic tool for building effective mobile loyalty programs. The components of mobile loyalty program branding — namely naming, logo, color palette, and typography — are systematized, and their functions in shaping a cohesive program image in the consumer's mind are defined. The main types of loyalty program naming are identified — ranging from names that incorporate part of the core brand name to names associated with premium positioning, benefit, game mechanics, or community — and the criteria for their selection are analyzed: marketing, phonostylistic, linguocultural, and legal. Practical examples of mobile loyalty program branding in the retail and cinema sectors in Ukraine are examined, with particular attention to the use of color solutions and game mechanics for creating additional application value. It is demonstrated that consistent and well-considered branding of loyalty programs contributes to the formation of perceptual and transactional consumer loyalty, increased customer engagement, and growth in repeat purchases. According to the Loyalty Program Trends 2025 report, approximately 70% of brands record an increase in engagement through loyalty programs, while 58% report growth in repeat purchases, which confirms the economic effectiveness of investment in loyalty program branding.

Discussion. Further research on the topic is proposed to be considered in the context of the practical activities of specific enterprises, the comparison of metrics before and after the implementation of branding or rebranding of mobile loyalty programs, as well as the development of an appropriate methodology for their analysis. This will provide opportunities to improve efficiency and effectiveness in branding development, increase enterprise profitability, and reduce the costs of retaining existing and acquiring new customers.