What You Need to Know About Mobile Wallet Marketing
How many loyalty/rewards cards do you have in your wallet? Maybe you have some tucked away in a drawer somewhere in your house. Chances are, you don’t always take them with you when you go shopping. Most likely, you forget that you even have them.
More and more consumers (especially millennials) are using the mobile wallet function of their cellular devices in order to store and manage brand loyalty cards and coupons as well as make payments directly from their phones.
Startups are taking notice of the mobile wallet trend and developing next-generation solutions to capitalize on this simple convenience that saves consumers money while helping store brands increase customer engagement.
Mobile Wallet Benefits
We rarely leave the house without our mobile phones. We’re addicted. We spend hours every day staring down at these devices…checking them every few minutes.
What better way for brands to stay top of mind with mobile-device-addicted consumers than to pop up right there on a user’s phone? Especially when email open-rates continue to plummet and it gets harder and harder to capture and maintain customer attention.
And what better way for consumers to manage all of their loyalty cards and program benefits than having all of that information easily available in the palm of their hands whenever they need it?
Starbucks was one of the early pioneers of loyalty program management via the mobile wallet. Customers can load their Starbucks cards with more money, get points automatically added to their account with each purchase, download free music, and now, even place their order ahead of time so their coffee will be ready and waiting for them.
In addition to loyalty program management, there are several other uses that make the mobile wallet more convenient.
- Boarding Passes -It’s so much easier to store boarding passes in your mobile device than to download and print it and then search for it once you get to the airport.
- Commuter Tickets –For large metropolitan areas with a wide array of mass transit options, being able to purchase and store regular train tickets on a mobile device is a great benefit. Especially for those times that the station’s ticket machine isn’t working properly or when you’re running late.
- Concert & Sporting Event Tickets –Concert promoters, bands, venues, and sports teams can be more engaged with their fans by offering mobile tickets. Once the fan has purchased the ticket through a mobile-wallet friendly app, they can receive updates about shows, rain-delays, set lists and more.
- Employee Access IDs –Popular co-working spaces such as WeWork are using mobile ID cards for access to the building and as a way to pay for food and drinks from the cafeteria and snack bars. They can also alert tenants and employees with building information, networking events, and provide emergency updates when needed.
Mobile Wallet Usage Stats
- 54% of respondents stated that they have used the mobile wallet feature before.
- Over half want to use mobile wallet exclusively for loyalty programs, coupons, delivery updates, payments, boarding passes, ID cards, and event tickets and reminders.
- 69% are more likely to use a loyalty/rewards card if it’s on their mobile device.
- Coupon expiration reminders sent directly to their phone would make 64% of users more likely to actually use the coupon.
- Mobile wallet use is higher among millennials and those with household incomes above $60K.
What Does This Mean for Startups?
If you’re a startup wanting to capitalize on the mobile wallet marketing trend, you might want to focus on two hot areas within the market: security and artificial intelligence (AI).
One of the reasons some consumers are reluctant to use a mobile wallet is because of security concerns. By creating solutions with hack-proof security built-in, you can help more retail clients convince their customers to actively participate in their rewards program.
Another area of focus would be AI. A user’s mobile phone is almost like having a DNA sample of their personality…their likes and dislikes, their buying habits. Building AI into solutions and apps that can make the right buying suggestion at the absolute right time can increase a brand’s bottom line in a substantial way.
Basically, by building more applications that use the power of the mobile wallet, startups and tech organizations can really tap into this growing trend. Who knows? Years from now, we may be living in a cashless society where everything is paid for via our mobile phone.
Think about it this way. The debit card & online bill pay option replaced the handwritten check. Can the mobile wallet replacing the real wallet be far behind?
Are you looking to create apps specifically for the mobile wallets or mobile payments industry? We can help! Contact us today.