More Consumers Would Use Mobile Wallets if They Gave Something Back
After several years of slow adoption, mobile wallets are finally starting to gain real traction with consumers, but many still need an extra push to turn their mobile wallet use into a true habit. A Points study, “The State of Mobile Wallet Loyalty and Engagement in 2016,” which identifies consumer pain points and desires for mobile wallets to offer insights into how loyalty programs, developers and merchants can create an optimal and engaging mobile payments experience. The report surveyed 1,500 consumers to better understand what the average consumer wants from their mobile wallet and how to drive continued engagement over time.
“Consumers are looking for that all-in-one solution when it comes to mobile wallets,” said Christopher Barnard, president at Points. “While adoption for mobile wallets has been gaining steam, loyalty is the missing piece to help users stay engaged in mobile wallets for the long haul. And on the flip side, the integration of loyalty into mobile wallets presents an incredible opportunity for loyalty programs to make their currencies more ubiquitous and more deeply engage their member base in a new way.”
Key findings of the study include:
Loyalty and Commerce are Intertwined
Loyalty has become an important part of consumers’ everyday lives. It’s no longer an add-on, but an expectation. Consumers are looking for more ways to earn and burn loyalty points, miles, rewards and experiences everywhere they go and with every transaction.
- More than 2 in 3 (68 percent) consumers have a rewards-collecting credit card.
- 85 percent of respondents want to engage with loyalty programs at places where they shop most frequently.
- Consumers are most interested in redeeming their rewards at:
* Grocery stores (38 percent)
* Travel: flight/hotel room (20 percent)
* Gas stations (18 percent)
Consumers Have Growing Expectations for Mobile Wallets
Mobile wallets are gaining traction. In fact, more than 3 in 5 consumers (64 percent) said they’ve used a mobile wallet in the past year. And while consumers have made their desire for loyalty in mobile wallets clear, there are a number of key features developers and providers should incorporate to encourage continued adoption and long-term use.
- 94 percent of respondents are interested in a mobile wallet that allows them to exchange points and miles between loyalty programs to grow balances.
- Almost half, 49 percent, of consumers would like to see more relevant deals or offers from merchants via mobile wallets
- More than 3 in 5 (60.4 percent) of consumers prefer to access all loyalty programs through one app.
Loyalty Drives Engagement
Across the board, consumers are much more likely to engage with brands that offer as much flexibility as possible. In many ways, it can be as simple as adding plentiful options for loyalty program members to earn and redeem rewards – especially through everyday purchases like filling up their gas tank or buying groceries.
- 90 percent of respondents are likely or extremely likely to shop with a retailer that allows them to earn points and miles in their favorite loyalty programs.
- 76 percent of survey respondents indicated they’re more engaged with loyalty brands when given more opportunities to earn and redeem loyalty points.
- 65 percent of consumers would choose to shop at one retailer over another if they had the option to earn loyalty rewards in their favorite airline, hotel or travel brand on purchases.
Looking at the different loyalty features consumers want in their mobile wallets, one trend is clear. Consumers want loyalty programs to be a one-stop-shop for accessing, organizing and utilizing their rewards. Mobile wallet developers and providers should keep consumers’ demand for loyalty top-of-mind – addressing concerns including security, convenience and ease of use. And likewise, now is the time for loyalty programs to be more flexible with their currencies by increasing their ubiquity to make them readily available in mobile wallets as adoption continues to gain traction.
Read more: media.points.com