The Mobile Wallet Shift: Non-payment Opportunities for Marketers

The mobile wallet shift: Non-payment opportunities for marketers SEPTEMBER 5, 2013!

Mark Tack, Vice President, Marketing, Vibes @MarkTack!

Rebecca Bogler, Sr. Director, Product Marketing, Vibes @RBogler!

#MobileWallet!

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©2013 Vibes All rights reserved. Confidential

#MobileWallet!

Discussion topics

The mobile wallet opportunity for marketers

Key insights from consumer research report

5 tips for executing mobile wallet programs

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#MobileWallet!

Discussion topics




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The non-payment opportunity for marketers!

The real opportunity for marketers with mobile wallet is in the non-payment arena

It’s the leather! …not the plastic!

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Mobile wallet in action…!

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Mobile wallet evolution and the non-payment movement!

9/19/11 Google Wallet

launched –payments focused

9/19/12 Apple

launched Passbook as part of iOS6

6/11/12 Apple

announced Passbook at

WWDC

5/15/13 Google

announced Google Wallet Objects API

Soon Google will launch new

Google Wallet with Objects

9/21/12 Vibes

launched Passbook

Beta Program

3/21/13 Vibes

launched Pass

Manager

5/15/13 Vibes

announced Google

Wallet Early Adopter Program

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Mobile wallet has proven to be effective for marketers!

Sample metrics from early Passbook programs:!§  64% more conversions from

Passbook vs. mobile web

§  32% of customers who clicked on the offer redeemed it in-store

§  24% increase in average order value with Passbook

Source: Vibes Passbook Program client metrics

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#MobileWallet!

Discussion topics




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Methodology!

Overview

§  Vibes partnered with Equation Research to conduct a quantitative research effort to understand the mobile device usage, shopping habits, behaviors and motivations of the connected consumer.

Methodology §  Fifteen minute online quantitative survey

§  Respondents recruited via paid national panel sample

§  Fieldwork conducted July 16-18, 2013

Sample § Total n=1,000

§ Smartphone owners

§ Ages 18+

§ U.S. residents

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What is your definition of a “mobile wallet”?!

§  48% of consumers are aware of the non-payment side of mobile wallet

Understanding of what a mobile wallet is

27%!33%!

21%! 19%!

A mobile tool that allows me to both pay for items with

my phone and store information!

A mobile tool that allows me to pay for items directly from my phone

A mobile tool that allows me

to store information!

I have no idea what a mobile

wallet is or what it’s used for

48%!

Source: Vibes 2013 mobile consumer survey – July 2013

Base: Total n=1,000

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Which mobile wallet feature would benefit you the most?!

§  85% of consumers would receive some benefit from non-payment mobile wallets

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

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of smartphone users have noticed any retailer offering mobile wallet specific content in the last six months

It’s time for retailers to capitalize...!Consumers want it...!

85% 19% of smartphone users see the non-payment benefits of the mobile wallet


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!

§  59% of consumers say they would have a more positive view of retailers if they started to deliver digitized mobile wallet content. (e.g., loyalty cards, offers/coupons, promotions)

Perception of retailer if offered wallet content

This would completely change the way I view the retailer in a positive way

25% 34% 38% 3% It would

diminish or weaken the perception I have of the

retailer

It would have no impact on how I view the retailer

This would make me like the retailer even more

How would your perception of a retailer change if they started to use mobile wallets?!

59% positive!


Base: Total n=1,000

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Do you use mobile wallets for non-payment and what has been your experience?!

§  33% of consumers have used mobile wallets for non-payment (e.g., storage of loyalty cards, coupons, etc.)

Income levels

26%!Income $100K+

28%!Income <$50K

25%!Income $50K - 74.9K

21%!Income $75K - 99.9K

Base: Total n=1,000; Users n=330 Source: Vibes 2013 mobile consumer survey – July 2013

Non-payment usage

No 67% Yes 33%

Non-payment experience

39% 41% 19% 1% Somewhat negative

Extremely positive Somewhat positive Neutral/no impact

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What would influence you to try a mobile wallet and what impact would it have?!

§  Among the two-thirds of consumers who do not currently use a mobile wallet, 50% say getting better promotions/offers would influence them to try it

Perceived impact

49%!Would not impact

either way

7%!Negatively impact

44%!Enhance

Base: Total n=1,000; Non-users n=670 Source: Vibes 2013 mobile consumer survey – July 2013

Mobile wallet usage

No 67% Yes 33%

What would influence you to try

50% 43% If I knew I would get better promotions and offers

25% 23% 23% If it would make my life easier by organizing things

If I knew I would get targeted and relevant offers

If I thought it would enhance my experience with my favorite brands

I am not interested in trying a mobile wallet tool

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§  Email is the most preferred method for receiving mobile wallet content (46%), followed by a retailer text message (20%), and retailer Apps (19%)

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

How do you prefer to receive mobile wallet content?!


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Quarterly 3%

How often would you like to receive mobile wallet content?!

§  The majority of consumers (55%) would prefer to receive mobile wallet content weekly

Daily 12%

Annually 1%

Never 12%

Weekly 55%

Monthly 18%

Preferred frequency

Base: Total n=1,000


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Respondent profile!

Smartphone Users Smartphone +

Mobile Wallet Users Gender!

Male 48% 52% Female 52% 48%

Age! 18-24 18% 21% 25-34 33% 44% 35-44 21% 18% 45-54 12% 8%

55+ 16% 8%

Income <$50K 31% 28%

$50K - 74.9K 26% 25% $75K - 99.9K 18% 21%

$100K+ 21% 26%

Smartphone users Smartphone + mobile wallet users

Base: Total Smartphone Users n=1,000; Users n=330

51%! 65%!


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Respondent profile (cont.)!

Base: Total Smartphone Users n=1,000; Users n=330

Smartphone Users Smartphone +

Mobile Wallet Users Ethnicity

White 74% 65% Asian 11% 17%

Hispanic or Latino 9% 12% Black or African

American 7% 8%

Other 4% 4%

Children Yes 43% 51% No 57% 49%

Region Northeast 24% 28%

Midwest 27% 22% South 28% 27% West 22% 23%

Smartphone users Smartphone + mobile wallet users

Base: Total n=1,000


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Summary of key findings!

Takeaway #1: It’s Early DaysWe are in the very early days of the non-payment mobile wallet transformation. Not surprising since Passbook came out last September and Google Wallet Objects is coming out soon. •  Only 33% of consumers have used

mobile wallets for non-payment (e.g., storage of loyalty cards, coupons, etc.) •  33% think of mobile wallets for

making payments. 19% have no idea what mobile wallets are •  Only 19% of smartphone users

have noticed any retailer offering mobile wallet-specific promotions in the past 6 months

Takeaway #2: Demand is High Smartphone users are eager to try mobile wallets for way more than making payments. The need and demand for the non-payment side of the mobile wallet is clear. •  85% of consumers would receive

some benefit from non-payment mobile wallets

•  59% of consumers say they would have a more positive view of retailers if they started to deliver digitized mobile wallet content

•  44% of non-users think a mobile wallet used to store information would enhance the shopping experience

Takeaway #3: Retailer Guidance Consumers have spoken about how and why they would use mobile wallets; offering retailers the guidance and direction they need to get started right now! •  Digitizing paper items (22%) and

organizing coupons and loyalty cards (19%) are the top benefits •  E-mail is the most preferred

method for receiving mobile wallet content (46%), followed by a retailer text message (20%), and retailer Apps (19%) •  The majority of consumers (55%)

would prefer to receive mobile wallet content weekly


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#MobileWallet!

Discussion topics




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5 tips for executing successful mobile wallet programs!

Being precise matters. With location-enabled mobile content, you want the location to be the entrance to the mall, the front door, or the center of your store.

Location

The dynamic nature of the non-payment side of the mobile wallet enables advanced programs where incentives can change based on time.

Time-sensitive offers

Updating mobile wallet content drives incremental traffic. Let your loyal customers know when you have new merchandise, sales, events and more.

Update your mobile offers…

frequently

Leverage customer data to create personalized mobile wallet content based on their preferences, behaviors and purchase history.

Personalize, Personalize, Personalize,

Develop a predefined set of metrics to better understand your brand’s potential with the non-payment side of the mobile wallet. Quantify the results and identify success.

Measurement and

optimization

Here are five tips to help you execute mobile wallet programs that drive engagement, loyalty, foot traffic — and your bottom line

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Catapult offers integrated mobile wallet campaign management!

SmartLink Technology!

Google Wallet Apple Passbook Other

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Catapult makes mobile wallet easy for marketers!

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Get the report and infographic!

Download the Report and Infographic here http://www.vibes.com/mobilewallet

Mobile wallet shift: Non-payment opportunities for marketers SEPTEMBER 5, 2013!

Mark Tack, Vice President, Marketing, Vibes!

Rebecca Bogler, Sr. Director, Product Marketing, Vibes!

Thank you!!

The Mobile Wallet Shift: Non-payment Opportunities for Marketers

Technology

Transcript of The Mobile Wallet Shift: Non-payment Opportunities for Marketers