How To Get Revenue From Your Mobile Wallet Feature With Loyalty and Rewards Strategies
Customers, Millennials, in particular, are ushering in a new era of payments with mobile wallets at the forefront. In fact, some reports have found that around 67% of Millennials are using mobile wallets.
Besides the convenience and speed that mobile wallets offer, customers are also demanding that their mobile wallets not only pay for their coffee, medicine, or airline tickets but also having those airline miles and retailer rewards balances being incorporated into those transactions.
We’re already starting to see that occur with retailers like Starbucks, Walgreens, and Wyndham. They are offering rewards when customers make a purchase using a smartphone app.
That shouldn’t be all that shocking. After all, loyalty and reward programs can help businesses acquire and retain customers. They also help improve cash flow, and increase your brand’s awareness.
But, how can you incorporate these loyalty and rewards strategies into a mobile wallet?
Mobile Wallets Can Boost Loyalty
Did you know that 69% of consumers are more likely to use a mobile loyalty card when it is on their phone? Additionally, a whooping 73% of consumers are more likely to join a loyalty program if points and rewards are automatically updated, as well as visible, on mobile loyalty cards.
In other words, mobile wallets can drastically boost customer loyalty, which in turn will give your revenue a jolt.
With that in mind, here are five ways that you embed loyalty and reward programs into your mobile wallet;
- Send your customers a notification alert whenever they move up to the next level of your loyalty or rewards program.
- Offer additional perks, such as early access to an upcoming sale or a unique promotional discount code.
- Showcase special promotions that will drive traffic to your store, such as a link to exclusive ‘VIP’ access to promotions.
- Allowing your customers to easily access and view their rewards.
- Reminding customers that they have rewards available whenever they’re in proximity to your business or when they open the mobile wallet.
Mobile Wallet Loyalty Is a Win-Win
As Danielle Brown explains in Let’s Talk Payments, integrating loyalty points onto a mobile wallet allows“users not only track all of their loyalty programs in one place but also exchange those points across multiple programs and redeem seamlessly with every transaction.” This is beneficial to both businesses and customers because it makes mobile wallets more enticing, as well as;
- Gives your business a competitive edge since you’re offering something unique.
- Makes it convenient for your customers since they can “collect rewards and purchase with points using the same vehicle they use to pay with traditional cash, which inevitably makes customers even more loyal to the brand.”
- Increases customer engagement by making your business a part of the daily routine of your customer. Think about earning points every morning when you stop to buy a cup of coffee.
Designing a Next Generation Loyalty Program
“Whether you’re launching or relaunching your loyalty program, you must consider their brand, customer base, and cost structure when designing a program,” writes Nick Winkler for the Shopify Plus blog. “While each plan requires customization, research indicates programs built on customer needs and integrated with overall company marketing goals can result in lower than expected costs and higher than anticipated returns.”
Winkler suggests that you design a next-generation loyalty program that will benefit both parties by;
- Segmenting your customers so that you focus on your most loyal customers.
- Incorporating behavioral, geo-location, and transactional history data. This helps you can build a more valuable program based on customer demographics and interests.
- Offering real-time and personalized loyalty programs to address the needs of your customers, kind of like how Amazon works.
- Sending relevant and personal messages across multiple channels and devices.
- Allowing customers to earn rewards in return for product feedback, online reviews, and referrals. Do this instead of just through purchases.
The Mobile Wallet Loyalty Outlook
If you’re a business owner, improving your merchant services by accepting multiple forms of payments, and rewarding customers for their loyalty isn’t just a luxury. It’s a necessity. As Geoff Smith perfectly explains in an article for Marketing Tech, “A marriage of social, mobile, and loyalty is a winning combination that puts brands top-of-mind, creates new customer-facing experiences, and allows companies to learn more about their fans.”
Incorporating loyalty and rewards programs is an effective way to gain a competitive edge. It allows you to engage your customers, and build a long-lasting relationship. All of which ways will lead to your business gaining more revenue.