Loyalty programs have been giving consumers an extra incentive to spend their money for a long time now. From the likes of Starbucks rewards to discount cards at Supermarkets, these different programs cannot only attract quick impulse sales from consumers but allow you to gain lifelong loyalty with a growing base of consumers interacting with your brand.
Marketers need to be ready for the opportunities that transpire as the way consumers pay for goods and services changes. Mobile wallets are currently one of these opportunities available now.
Although mobile payments have been infrequent with their success since launching over five years ago, digital wallets are finally gaining traction amongst consumers. A recent study found that apps such as Apple Wallet, Android, and Samsung Pay have been used by 54% of consumers – with that number likely to increase in 2018.
This study also found that half of those consumers expressed an interest in using mobile wallets for functions other than just payments – coupons, ID cards, and delivery updates were just some of the suggestions. This means that not only can you build a lasting bond with your customers through a digital loyalty program, meaningful lock-screen reminders allow you to incentivize them into to make a purchase. This is fantastic news for marketers as you’re able to market straight into consumers hands.
By being stored in mobile wallets, one of the biggest hurdles loyalty programs usually encounter is overcome – longevity. No longer do people have to worry about forgetting their card or account number, as this information is all stored within their mobile wallet. Marketers are just one push notification away from creating the next digital touchstone directly with consumers by reminding them that they have a payment system set up.
Marketing strategies and partnerships see possibilities grow as mobile payments continue to evolve and accelerate. By using location services, merchants and brands can join together so that, for example, when an item from a vending machine is purchased, a coupon could be generated giving 10% off at a retail shop across the road.
Such as with the automation of cars and other processes, as physical interaction in stores become a thing of the past, the combination of mobile payments and loyalty programs provide a way for brands to continue to interact with consumers easily and efficiently.
The pairing of mobile wallets and loyalty programs has also brought about some interesting insights about how brands can stand out to customers and what they can do to learn about their customers through the combined technologies. A self-service food operator launched a branded loyalty program paired with cashless payment technology, they were able to increase average sales tickets by 174%. Through its loyalty program, it was also able to gain valuable insight into the buying habits of its customers and the combinations of items they chose. This then allowed them to bundle certain items together as an incentive for customers to spend more money.
Mobile wallets and loyalty programs have become much more relevant for marketers to reach consumers as our lives become more and more digitised and automated. They fill the expectations and needs of consumers by allowing businesses to become more connected with them.