This post was inspired by and during a session at the Performance Marketing Insights conference in NYC, presented by KeyNote Speaker of Forrester Research, Senior Analyst, Denee Carrington.
Digital wallets will revolutionize the way consumers shop and pay for goods and services. Those who carry a mobile device will be your 'always ready' consumer, especially with the growth of digital wallets.
There are four major categories around mobile considerations
- Product Infomration
- Offers and Coupons
- Loyalty and Rewards
- Mobile Payments
What is a digital wallet?
It is a digital service accessed through the web or a mobile app that authorizes payment transactions from one or more payment sources that facilities other commerce-related features such as offers, coupons, deals and more.
VAS will emerge within mobile digital wallet for use at point of sales. Coupons will be integrated for automated redemption, enhanced targeting and relevance, merchant funded. Consumers are already using value added services outside of the wallet: scanning, location lookups, redeeming codes, images
What we are finding is the more people do this, the more they do it! Meaning it's going to continue to accelerate.
- Retail sales are expected to be $3.8TT in 2016
- eCommerce = 9% of that
- mCommerce = 8% of that.
- Google Offers within Google Wallet
- Clip to Isis - Tap, scan, click offers or follow merchants
- Prewards (edo interactive)
- FirstData - beyond the transaction
- Card-linked offer platforms are on the rise and will feed bank-driven digital wallets, targeting based on customer profile and spend history, automatic redemption and pricing will be modelled around "pay on redemption".
- Square - enables discovery, incentives for first visits and loyalty rewards.
- LevelUp - enables discovery (directory and Facebook integration), automates instead credit for first time and repeat visits.
- Digital Wallets will continue to transform the "in-store" experience. You won't' have to stand in line anymore. You simply scan your phone and it will automatically be shipped to you to your home. Payment and shipping info will already be registered, so you can move faster and shop more conveniently than ever.
- "Line busting" features let consumers order, pay before arriving in the store.
SO, what does this mean for performance marketing?
- The payments landscape will become more crowded and complex, There won't be just a single winner. They will be all interconnected. The ones that will do well will be the ones that add value and a unique experience for the customer.
- Banks and merchants will fight to retain control and influence of their customers spend. Digital wallets threaten to supersede bank and retailer influence on customer shopping and payment decisions.
- Marketers should partner promiscuously. Seamlessly integrate into wallet experience, and help them win. Give them a reason to exist, a reason for customers to use them, which are the rich experiences with their merchants.
- Help partners get ahead of regulator concerns about privacy with mobile advertising.
- Demonstrate your value to help wallet providers to be successful: Greater value to merchants, greater convenience to consumers, help banks achieve "top of wallet" positions.