The first two months of 2023 were certainly a whirlwind and March is no different. Whew.
Every customer conversation was - and continues to be - focused on a few questions and themes:
- Budgets are slashed - how do I drive MORE value with LESS cost?
- Retail competition is fierce - how can I ensure I keep my loyal customers and drive more lifetime subscriber value?
- How do I offer promotions without hefty margin-cutting discount deals?
Well, the answer to each of these can be and should be: Loyalty Program.
The future is a tenderless loyalty program that rewards (pun) incrementally and balances both ecommerce and brick-in mortar revenue streams. This last piece is done most successfully with a digital wallet program on top of your loyalty engine.
Apple and Android mobile wallets offer the ability to send wallet notifications to customers (a notification that looks exactly like a push notification), which can be a powerful driver of engagement and conversion. In fact, according to research conducted by Bond Brand Loyalty one in four consumers - particularly Gen Z and younger Millennials - save their card in their mobile wallet and show it to receive benefits or make purchases.
Mobile Wallet offers are also becoming table stakes for any multi-channel marketing program, as they should be given how effective they are at driving in-store foot traffic and conversion. We recently conducted an analysis on the impact of mobile wallet offers on in-store engagement and found that when a consumer receives a wallet notification for a saved mobile wallet offer they are more likely to visit the store and complete their purchase within two weeks. This is certainly not surprising given that more than 70% of consumers engage more with loyalty programs that are easily accessible from a smartphone.
And our customers are already seeing so much success.
- A large retailer recently launched a mobile wallet loyalty card through Vibes and saw 220K card downloads in the first 6 months which led to more than 84K wallet card transactions in just 3 months after launch!
- A large restaurant chain integrated their existing mobile wallet loyalty card to be available through their mobile app and saw the number of installed loyalty cards skyrocket by almost 2X within a 3-month period!
Another interesting finding is that consumers are more likely to complete a purchase when they have received a wallet notification from the brand's loyalty program. This is not only because it's a timely notification, but also because they see and truly feel they’re being rewarded for their loyalty to the brand. The wallet notification also excites consumers who feel like they are getting exclusive offers and promotions only available through their mobile wallet loyalty card. They feel special, and they shop as a result.
The most important takeaway from this study is that brands need to be proactive when it comes to mobile wallet loyalty programs. By not offering a mobile wallet solution today, your brand is missing out on new opportunities for increased sales and customer retention.
With all of this in mind, the resulting conclusion is clear: whether you are an enterprise retailer, a cost-conscious QSR, or a global financial institution, Mobile Wallet is a cornerstone to both market differentiation and loyalty.