the mobile wallet shift: non-payment opportunities for marketers
DESCRIPTION
The non-payment side of the mobile wallet is a true game changer for marketers. This new marketing frontier empowers marketers to run mobile wallet programs that take advantage of time, location and interaction. These powerful new mobile wallet tools like Apple's Passbook and Google Wallet Objects allow marketers to drive in-store traffic and increase average order value. To help marketers better understand this new opportunity, Vibes fielded the industry's first consumer study focused on the non-payment side of the mobile wallet. This definitive research reveals consumer attitudes and behaviors related to this emerging mobile marketing technology. In this presentation, you will learn about: - Benefits of the non-payment side of the mobile wallet - The mobile wallet disconnect - High consumer demand - Preferred distribution and frequency of mobile wallet content - Five tips to execute successful mobile wallet programsTRANSCRIPT
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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©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
4
©2013 Vibes All rights reserved. Confidential
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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©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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©2013 Vibes All rights reserved. Confidential
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!
Source: Vibes 2013 mobile consumer survey – July 2013
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
Source: Vibes 2013 mobile consumer survey – July 2013
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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!
Source: Vibes 2013 mobile consumer survey – July 2013
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?!
Source: Vibes 2013 mobile consumer survey – July 2013
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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
Source: Vibes 2013 mobile consumer survey – July 2013
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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%!
Source: Vibes 2013 mobile consumer survey – July 2013
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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
Source: Vibes 2013 mobile consumer survey – July 2013
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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
Source: Vibes 2013 mobile consumer survey – July 2013
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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
22
©2013 Vibes All rights reserved. Confidential
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!!