Mobilize Your Loyalty Program with Mobile Wallet

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CRM and loyalty marketers at all major retailers know that today’s mobile consumers are evolving rapidly, and have heightened expectations for their favorite retailers. What they may not know is that new mobile technologies, such as Google Wallet and Apple’s Passbook, are transforming retailer’s ability do deliver value to their most loyal customers. When used in tandem with loyalty programs, these innovative mobile wallets can amplify loyalty programs by making them more relevant, contextual, timely and useable.

Featuring: Emily Collins, analyst at Forrester Inc., and Julie Novack, Senior Vice President of Mobile Solutions at Vibes.

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Mobilize Your Loyalty Program with Mobile Wallet

  1. 1. Mobilize your loyalty program with mobile wallet MAY 20, 2014! Emily Collins, Analyst at Forrester Research ! !! Julie Novack, SVP Mobile Solutions !! #walletloyalty! @ecollins31! @JulieRothNovack !
  2. 2. 2 ©2014 Vibes All rights reserved. Confidential #walletloyalty! Today’s speakers! Emily Collins, Analyst at Forrester Research and lead author of: §  The Loyalty Program Participant Profile (published: February 20, 2014) §  The Forrester Wave™: Loyalty Program Service Providers, Q4 2013 (published: October 30, 2013) §  The State Of Loyalty Programs 2013 (published: October 3, 2013) Julie Novack, SVP of Mobile Solutions at Vibes §  Mobile Marketer Women to Watch in Mobile (2012) §  The ABCs of Passbook & Google Wallet Presenter (February 6, 2014) §  Google Wallet & Apple’s Passbook: 5 key differences you need to know Presenter (November 26, 2013)
  3. 3. © 2014 Forrester Research, Inc. Reproduction Prohibited 3
  4. 4. © 2014 Forrester Research, Inc. Reproduction Prohibited 4 Empowered consumers demand more control
  5. 5. © 2014 Forrester Research, Inc. Reproduction Prohibited 5 Your customers are “always on”
  6. 6. Your customers have more choices and can switch on demand
  7. 7. © 2014 Forrester Research, Inc. Reproduction Prohibited 7
  8. 8. © 2014 Forrester Research, Inc. Reproduction Prohibited 8 What is the current state of loyalty?
  9. 9. © 2014 Forrester Research, Inc. Reproduction Prohibited 9 Base: 98 loyalty program marketers; Source: Q3 2013 Global Loyalty Program Service Providers Forrester Wave™ Customer Online Survey Organizations are prioritizing their loyalty programs Budget support is strong Loyalty is a key strategic imperative “How has your loyalty budget changed year over year in 2013?” 43% 34% 3% Increase Stay the same Decrease Base: 50 loyalty program marketers; Source: Q3 2012 North America Loyalty Benchmark Online Survey
  10. 10. © 2014 Forrester Research, Inc. Reproduction Prohibited 10 Base: 98 loyalty program marketers; Source: Q3 2013 Global Loyalty Program Service Providers Forrester Wave™ Customer Online Survey Business objectives focus on both retention and engagement
  11. 11. © 2014 Forrester Research, Inc. Reproduction Prohibited 11 Consumers maintain a healthy appetite for loyalty programs
  12. 12. © 2014 Forrester Research, Inc. Reproduction Prohibited 12 Source: North American Technographics Customer Life Cycle Survey, Q2 2013 Over two-thirds of consumers belong to at least one loyalty program 5% 22% 22% 25% 26% 33% 34% 35% 37% 39% 60% 68% Other Gas station Entertainment Department store Quick service restaurant Shopper club Airline/frequent flyer Hotel Specialty retail Bank/credit card Pharmacy/Drug store Supermarket/Grocery store Base: US Online Adults 18+ (Online Weekly or More) who belong to loyalty programs “Which of the following types of customer loyalty programs do you belong to?” On average, consumers belong to about 8 loyalty programs.
  13. 13. © 2014 Forrester Research, Inc. Reproduction Prohibited 13 Source: North American Technographics Customer Life Cycle Survey, Q2 2013 Consumers participate in the programs they join I regularly participate in most of the loyalty programs I join 59% I regularly participate in just a few of the loyalty programs I join 36% I rarely, if ever, participate in the loyalty programs I join 5% Base: US Online Adults 18+ (Online Weekly or More) who belong to loyalty programs "Which of the following statements best describes your level of involvement with customer loyalty programs you join?"
  14. 14. © 2014 Forrester Research, Inc. Reproduction Prohibited 14 Source: North American Technographics Customer Life Cycle Survey, Q2 2013 Active program members are willing to pay and share 64% 59% 56% 43% 50% 52% 37% 51% 50% 44% 48% 36% 33% 24% When I find a brand I like, I stick to it A brand's reputation is important to me I prefer to buy brands that I have owned previously Price is more important to me than brand names I would pay more for products or services that save me time and hassles I often tell my friends and family about new brands, products, or services that I have discovered I would pay more for brands or products consistent with an image I like I regularly participate in most of the loyalty programs I join I rarely, if ever, participate in the loyalty programs I join Base: 3,266 US online adults (18+) who belong to loyalty programs “How much do you agree with the following statements?” (4 and 5 responses on a scale of 1 [Do not agree at all] to 5 [Agree completely] shown)
  15. 15. © 2014 Forrester Research, Inc. Reproduction Prohibited 15 Source: North American Technographics Customer Life Cycle Survey, Q2 2013 Consumers view programs as a way to save 24% 48% 50% 64% 78% I belong to too many loyalty programs Loyalty programs influence how much I spend Loyalty programs influence what I buy Loyalty programs influence where I make purchases Loyalty programs save me money “How much do you agree with the following statements regarding customer loyalty programs?” (4 and 5 responses on a scale of 1 [Do not agree at all] to 5 [Agree completely] shown) Base: US Online Adults 18+ (Online Weekly or More) who belong to loyalty programs
  16. 16. © 2014 Forrester Research, Inc. Reproduction Prohibited 16 Program differentiation presents a significant hurdle to success
  17. 17. © 2014 Forrester Research, Inc. Reproduction Prohibited 17 Marketers struggle to effectively communicate with customers 24% 24% 25% 25% 26% 29% 41% Managing program costs and points liability Understanding customer interactions across all touch points (online, mobile, social, offline, back office) Measuring the results of our loyalty program/ initiatives Maintaining a consistent member experience across channels and touch points Aligning our loyalty strategy with the overarching business/enterprise strategy Delivering offers with a high perceived value Ensuring member awareness/ understanding of the program and its benefits Base: 98 loyalty program marketers; Source: Q3 2013 Global Loyalty Program Service Providers Forrester Wave™ Customer Online Survey “What are the greatest challenges facing your customer loyalty program and initiatives today?”
  18. 18. © 2014 Forrester Research, Inc. Reproduction Prohibited 18 It’s time to seize the mobile moment.
  19. 19. A mobile mind shift has occurred The expectation that any desired information or service is available on any appropriate device, in context, at your moment of need
  20. 20. © 2014 Forrester Research, Inc. Reproduction Prohibited 20 Source: North American Technographics Customer Life Cycle Survey, Q2 2013 Consumers have an appetite for mobile rewards 50% of loyalty program members want mobile gift cards and reward certificates. 44% of consumers are interested in joining programs that offer mobile coupons.
  21. 21. © 2014 Forrester Research, Inc. Reproduction Prohibited 21 But loyalty marketers have yet to fully embrace mobile
  22. 22. © 2014 Forrester Research, Inc. Reproduction Prohibited 22 The role of mobile in loyalty cannot be understated.
  23. 23. © 2014 Forrester Research, Inc. Reproduction Prohibited 23 First, mobile boosts customer understanding › Mobile helps marketers follow program members across the customer lifecycle › Mobile channels are highly trackable › Mobile interactions create new data streams
  24. 24. © 2014 Forrester Research, Inc. Reproduction Prohibited 24 Second, mobile streamlines loyalty program utility Then Now Mobile simplifies the member experience, and gives members more control over when, where, and how they participate.
  25. 25. © 2014 Forrester Research, Inc. Reproduction Prohibited 25 Third, mobile increases the relevance of loyalty programs › Contextual insights help marketers deliver more personalized marketing content › But it goes beyond creating a mobile version of the loyalty card and offers. › Mobile also creates new opportunities for engagement that go beyond typical program interactions
  26. 26. © 2014 Forrester Research, Inc. Reproduction Prohibited 26 Key takeaways… › Loyalty is harder than ever to earn, but mission critical to the success of your business. › Customer loyalty strategies need to evolve with a focus on relationships, relevancy, and engagement. › Mobile channels create additional opportunities for marketers to engage, recognize, and reward their best customers. › Delivering offers and content through mobile simplifies and increases the utility of existing programs.
  27. 27. 27 ©2014 Vibes All rights reserved. Confidential #walletloyalty! Mobile Wallet 101 A “mobilized” loyalty program Getting started #walletloyalty!
  28. 28. 28 ©2014 Vibes All rights reserved. Confidential #walletloyalty! Mobile Wallet 101 A “mobilized” loyalty program Getting started #walletloyalty!
  29. 29. 29 ©2014 Vibes All rights reserved. Confidential #walletloyalty! Mobile landscape overview! Mobile marketing ! Mobile advertising! Mobile ! experiences! Mobile service! mobile display ads rich media ads apps mobile web experiences m-commerce Mobile media buys mobile wallet! marketing! QR codes SMS MMS mobile alerts mobile database loyalty program activation service alerts targeting & segmentation push notification payments Programmatic (RTB) service apps mobile! coupons!
  30. 30. 30 ©2014 Vibes All rights reserved. Confidential #walletloyalty! The “non-payment” mobile wallet marketing movement! §  Apple launched Passbook in September 2012 §  The new Google Wallet app launched in 2013 for iPhone & Android Rewards certificates Loyalty cards Offers and coupons
  31. 31. 31 ©2014 Vibes All rights reserved. Confidential #walletloyalty! No words needed to explain the value to the consumer!!
  32. 32. 32 ©2014 Vibes All rights reserved. Confidential #walletloyalty! Vibes’ Consumer Study: 85% see the benefits of mobile wallet! No Benefit Digitizing paper items Organizing on your smartphone   Managing point balances   Time sensitive offers   Automatically updated items   Location aware alerts   22% 19% 13% 13% 10% 7% 15% Mobile wallet benefits 85% perceived benefit! Base: Total n=1,000 Source: Vibes 2013 mobile consumer survey – July 2013
  33. 33. 33 ©2014 Vibes All rights reserved. Confidential #walletloyalty! Mobile wallet marketing is making a big impact! On average, 70% of consumers will save a Passbook offer to their phone when presented with a pass. 64% higher conversion rate over static mobile web coupons When email is activated with Mobile Wallet – 8% increase in conversion ! Are people using it?! Does it work?! Does wallet lift email conversion?! 26% increase in AOV over static mobile web offers
  34. 34. 34 ©2014 Vibes All rights reserved. Confidential #walletloyalty! Many use cases for mobile wallet (non-payment) ! Event/VIP Passes The Account CardThe Loyalty CardOffers & Incentives CarrierOne Account Number 12345678910 Our focus today
  35. 35. 35 ©2014 Vibes All rights reserved. Confidential #walletloyalty! Why mobilize your loyalty program?! For the Consumer! For the Marketer! §  Convenience §  Timely reminders (expiring points) §  Location triggers §  Great way to engage loyalty members §  Ability to update points real-time §  Low cost location-based marketing
  36. 36. 36 ©2014 Vibes All rights reserved. Confidential #walletloyalty! Mobile Wallet 101 A “mobilized” loyalty program Getting started #walletloyalty!
  37. 37. 37 ©2014 Vibes All rights reserved. Confidential #walletloyalty! Seeing is believing…try it out!! Text STYLECARD to 84237! Google Wallet Apple Passbook Mobile Web Fall-back Page
  38. 38. 38 ©2014 Vibes All rights reserved. Confidential #walletloyalty! Deliver lock screen notifications to consumers Apple’s Passbook – Mobile Loyalty Card! Keep Reward Balance above the fold for easy viewing Dedicate label value to showcase loyalty program join date Prompt users to download your app Include information like: •  Location of favorite store •  Phone number •  Store hours Feature unique loyalty ID beneath barcode Terms and conditions located beneath all company information Personalize with name, points, and even colors for loyalty tiers
  39. 39. 39 ©2014 Vibes All rights reserved. Confidential #walletloyalty! Assign a unique barcode ID to track redemption! Include retailer name and offer! Make sure logo is sized appropriately! Include store information and hours! Put important information like exclusive offers in the “Messages” field! Place information about the loyalty program at the end! Google Wallet – Mobile Loyalty Card! 1:1 personal messaging to loyalty members with offers, custom messages & more
  40. 40. 40 ©2014 Vibes All rights reserved. Confidential #walletloyalty! Mobilize reward certificates too…! Deliver time-sensitive reward certificates and send special offers to members Google Wallet Apple’s Passbook
  41. 41. 41 ©2014 Vibes All rights reserved. Confidential #walletloyalty! Three seamless ways to distribute mobile wallet loyalty cards! Email! App! Text!
  42. 42. 42 ©2014 Vibes All rights reserved. Confidential #walletloyalty! Email is one of the easiest channels to activate with wallet! 1. Desktop email 2. Mobile email
  43. 43. 43 ©2014 Vibes All rights reserved. Confidential #walletloyalty! For text, leverage device-aware, trackable, shortened URL ! Mobile Web Fallback Page Google Wallet Apple Passbook
  44. 44. 44 ©2014 Vibes All rights reserved. Confidential #walletloyalty! Google Wallet and Passbook are location-aware solutions! Vibes
  45. 45. 45 ©2014 Vibes All rights reserved. Confidential #walletloyalty! iBeacons + Passbook – the next wave of shopper engagement!
  46. 46. 46 ©2014 Vibes All rights reserved. Confidential #walletloyalty! Raise awareness about loyalty program and available rewards Drive engagement with real-time points notifications Drive foot traffic and enable easy redemption at POS Offset expensive call center calls by providing timely info How mobile wallet can strengthen your loyalty program AWARENESS! ENGAGEMENT! TRANSACTION! SERVICE!
  47. 47. 47 ©2014 Vibes All rights reserved. Confidential #walletloyalty! Mobile Wallet 101 A “mobilized” loyalty program Getting started #walletloyalty!
  48. 48. 48 ©2014 Vibes All rights reserved. Confidential #walletloyalty! Think holistically about your mobile wallet marketing strategy ! 1. Create! 2. Distribute! 3. Manage!4. Measure! 5. Optimize!
  49. 49. 49 ©2014 Vibes All rights reserved. Confidential #walletloyalty! Up and running in 10 days 1. Prioritize your use cases! Event/VIP Passes The Account CardThe Loyalty CardOffers & Incentives CarrierOne Account Number 12345678910 Up and running in 3-6 weeks depending on integration needs
  50. 50. 50 ©2014 Vibes All rights reserved. Confidential #walletloyalty! 2. Determine best ways to distribute mobile wallet loyalty cards! Email! Web! App! SMS! Direct mail!
  51. 51. 51 ©2014 Vibes All rights reserved. Confidential #walletloyalty! Preferred method for receiving mobile wallet content Email 46% 20% 19% 11% 4% Text message from the retailer App from the retailer Direct mail Mobile banner advertisement Base: Total n=1,000 Email and text are preferred methods ! Source: Vibes 2013 mobile consumer survey – July 2013
  52. 52. 52 ©2014 Vibes All rights reserved. Confidential #walletloyalty! 3. Select a platform that makes mobile wallet management easy! Mobile wallet metrics Single “smartlink” Manage Passbook & Google Wallet in one interface Manage locations (geo or iBeacon IDs)
  53. 53. 53 ©2014 Vibes All rights reserved. Confidential #walletloyalty! Make sure to build solutions for both iPhone and Android users ! Google Wallet Apple Passbook
  54. 54. 54 ©2014 Vibes All rights reserved. Confidential #walletloyalty! 4. Identify KPIs and actively update and monitor campaigns !
  55. 55. 55 ©2014 Vibes All rights reserved. Confidential #walletloyalty! Key takeaways! Determine wallet use cases for your business Promote your mobile wallet content through multiple channels – email and SMS for starters Leverage location-based triggers to drive engagement for your loyalty program Select a platform to make it easy to actively manage and monitor performance Test today to get ready for holiday
  56. 56. 56 ©2014 Vibes All rights reserved. Confidential #walletloyalty! Get the Mobile Wallet Handbook! www.vibes.com/handbook
  57. 57. 57 ©2014 Vibes All rights reserved. Confidential #walletloyalty! Q A& Emily @ecollins31 Julie @JulieRothNovack John @JohnHaro #walletloyalty!
  58. 58. Mobilize your loyalty program with mobile wallet MAY 20, 2014! Emily Collins, Analyst at Forrester Research ! !! Julie Novack, SVP of Mobile Solutions !! #mobileloyalty! @ecollins31! @JulieRothNovack ! Thank you!

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