By Amanda Peterson, Guest Contributor from Enlightened Digital
Mobile payment may not have made its mark on your business’s bottom line quite yet, but when it comes to customer acquisition, retention and satisfaction, it’s a must. Why? Customer loyalty.
While cash and cards still dominate the payment landscape, there is a greater demand for mobile payment technology, particularly with today’s younger consumers. In fact, data from Statista shows that over 88,000 transactions were completed via mobile payments in 2017, an astronomical increase from the 3,700 transactions made in 2014. As Generation Z and young Millennial consumers take over the majority of consumer spending, this number is expected to grow. A representative from Accenture reports that “Younger consumers are demanding an exceptional digital payments experience on all platforms — most importantly on their smartphones.”
Businesses today are vying for this customer base more than ever, which is why it’s time to consider gaining a competitive edge through mobile payments. As our everyday lives become increasingly digitized and automated, mobile wallets and loyalty programs have become more relevant for marketers and the consumers they’re trying to reach. Here’s how you can use the convenience, experience and perks enabled by mobile payment to bolster your customer loyalty and benefit your business in the long run:
Allow Consumers to Pay with Digital Wallets
Mobile payment is simple to use and easy to manage, and it drives the consumer purchasing process seamlessly. In fact, 32 percent of Millennials envision a cashless society where currency will no longer be needed for transactions. Speed and convenience appeal to this target demographic. From checking their bank accounts to splitting restaurant tabs, consumers can manage their finances from the convenience of their mobile devices. Mobile payment also benefits consumers with speedier transactions at check out; it has been shown to cut transaction time by over 50% in comparison to EMV chip technology.
Millennials and Generation Z are heavily engaged in mobile platforms such as restaurant order-ahead apps, ride-sharing apps, shopping apps, peer-to-peer payments and mobile banking, so many are already familiar with the ease that digital wallets provide. When it comes to their money, Millennials and Generation Z are demanding digital services that enhance their purchasing process.
Personalize the Customer Experience
Many of today’s mobile-based loyalty programs can become integrated with mobile payment, which allows your business to tailor rewards programs and in-app messages to the customer’s preferences. The importance of rewards as a competitive differentiator has never been greater, with 70 percent of millennials identifying rewards and/or discounts as the most compelling motivational factors for making mobile payments.
Offering location-based offers and time-relevant coupons in collaboration with mobile payments is a great motivator for boosting transaction rates. Take a corporation’s mobile app for example. By enabling mobile payment, customers can rack up points anytime they pay from the company’s app. Accumulating these points gives way to free products and special perks, which motivates the customer to spend more money with that company.
Improve Consumer Trust
As credit card theft and fraud continue to be a rising concern for today’s consumers, retail institutions must balance security with the simplicity that consumers want. Digital wallets, however, are proving themselves to be more secure than swipe cards and chip-enabled cards. As Robb Gaynor told Bankrate, “You can steal cash and credit cards, but you can’t steal something that is linked to your phone.” Many mobile payment options even use biometric technology that require users to authorize payments with their fingerprint.
Consumers are more likely to spend more with merchants that they trust. Eventually, loyal customers spend 67 percent more than new ones. If you offer mobile payment options, customers will be able to depend on your company to keep their data and information protected and trust that they can make transactions safely.
When it comes to acquiring new customers and growing customer loyalty, businesses can’t afford to fall behind. Having a solution that allows you to accept digital payments anywhere, anytime and through any device will help you acquire and retain customers and drive sales toward your business.