The mobile wallet industry is exciting right now: every day brings more functionality for merchants, as well as more places where mobile payments are accepted for shoppers, making this a win-win solution on both sides.
We recently published a digital genius guide on how marketers can benefit from mobile’s fastest-growing channel that included some great insights into consumer behavior around mobile wallets, as well as reasons to have a mobile wallet strategy. Here are a few of the highlights.
Consumers Aren’t Just Using Mobile Wallets for Payments
While mobile payments are the primary driver for the use of mobile wallets, 38% of consumers are using them for other functions. Storing loyalty card data, getting special offers, and being reminded of events are all functions that people are benefiting from in addition to being able to pay for purchases without plastic cards (or cash; remember that stuff?).
They Want to Ditch the Plastic Rewards Cards
Raise your hand if you have a stack of unused loyalty rewards cards gathering dust in your junk drawer. We all do. As a result, a ton of transactions don’t get logged into loyalty programs. Consumers want the benefit of loyalty cards, but not the hassle. In fact, about 70% of people would think more positively of a brand if they transitioned from physical cards to offering digital versions.
Given that retailers spend on average $5 to create a single plastic loyalty card, going digital has benefits for you too: you can save over 90% on manufacturing costs by mobilizing your loyalty program.
Retailers are Swarming to Mobile Payments
It’s like the world just got the memo: accepting mobile payments equals increased revenue! By 2018, it’s expected that 50% of US retailers will accept Apple Wallet, and, presumably, a similar amount will accept Android Pay.
Offering mobile payments not only gives shoppers another way to pay for goods (and forgetting their other wallets at home is no longer an excuse), but it also sends signals that your brand is on the cutting edge of technology. And that’s a great competitive advantage.
Refreshing Saved Offers Is a Major Score
Both Apple Wallet and Android Pay allow for unlimited updates to mobile wallet offers. Since fewer than 1% of people remove an offer or coupon once they have added it to their mobile wallet, this gives you the opportunity to continually put new offers in front of them.
Marketers are quickly learning the strategies that increase redemption. They can increase the discount if an offer hasn’t been redeemed, extend the redemption date, or set a time trigger notification for time-sensitive loyalty offers.
Geolocation Notifications Have Serious ROI
When shoppers are out and about is the ideal time to put an offer in front of them. Using location-based push notifications, you can send timely offers when consumers are in close proximity to your store. You can easily capture customers who may not have planned to shop with you as a result, enticing them with digital offers they can store in their mobile wallets and redeem in the store.
Results Beat Out Other Marketing Channels
Marketing with mobile wallet functions can produce conversion rates upwards of 65%. What ad campaign have you had with such amazing results? And with an average spend per mobile subscriber of about $15, the return on investment is exponential.
Because you don’t have to invest in developing your own proprietary mobile wallet application — and because Apple Wallet and Android Pay are pre-installed on most Apple or Android devices — you don’t have to work hard to get people to take advantage of your offers.
For more details on the state of the mobile wallet industry, please download our “Benefit from Mobile’s Fastest-Growing Channel” digital genius guide.