A quarter of European shoppers would be more likely to use coupons in a store if they could store them on their mobile phone, showing that mobile wallets could be a way to help boost in-store footfall.
So suggests a study by Forrester, which predicts that the use of mobile wallets will double by 2020 and, in the next five years, will establish themselves as a new mixed marketing channel.
However, marketers in Europe have been challenged to mimic the success of mobile wallet solutions in China and Asia Pacific, due to the fragmented payment landscape in Europe, say the report.
Marketers will embrace mobile wallets when they realise the potential of the platform. According to Forrester’s research, the low adoption of mobile wallet marketing does not reflect consumers’ desire for improved shopping experiences.
In order to provide a better experience for consumers, loyalty reward programmes need to be revamped. In fact it was found that up to 43% of consumers in the UK and US forget to use their loyalty card, and only 14% of European consumers access loyalty solutions on their smartphones.
But, 23% of European online adults would more regularly use coupons if they could be stored on their phones and 48% of European consumers who use mobile wallets are interested in trying additional features, such as keeping digital concert, film or travel tickets in their mobile wallets.
Mobile wallets enable retailers to connect with shoppers to influence purchases. John Lewis’ app encourages consumers to add their loyalty card to their mobile wallet. When shopping in-store, consumers then receive reminders to use their loyalty cards when they are near a John Lewis or are using in-store Wi-Fi.
The study also finds that only 15% of European and US marketers use third-party platforms like Facebook Messenger or WhatsApp.
Mobile wallets provide an opportunity for marketers to reach interested and engaged consumers on mobile devices. Separate research in CJ Affiliate’s Cross-Device Intelligence Report, finds that the majority of sales driven by coupon and cashback offers complete within just twenty-four hours, especially on smartphones for use on device, on the web and in-store.
In fact, 64% of coupon publishers and 54% of cashback publishers saw conversion in this period, compared to content, search and social publishers, where almost half (42%) saw conversions between eight and 49 days after the last click on a promotion.
“On average, cross-device purchases have a 23% higher order value than single-device purchases, but clearly, not all publisher strategies have equal ‘sales velocities’,” explains Owen Hancock, Head of Strategy, CJ Affiliate. “Coupons and cashback get quick returns but must be worked with differently to build brand value. Comparatively, search, social and content campaigns have a longer payoff period, but often create a longer-lasting, more memorable impact on consumer buying behaviour.”
The study also examined consumers’ preferred devices and days of the week for making purchases. Unsurprisingly, weekends saw more cross-device sales, with smartphone shopping highest on Fridays and sales on tablets peaking on Sundays. Finally, the greatest number of cross-device sales completed on a desktop occur on Tuesdays, while Saturdays and Sundays see the least number of these kinds of purchases.
“With smartphone shopping reaching its peak on Fridays, it seems that many consumers are revelling in some celebratory end of week purchases, with relaxed browsing happening on tablet devices on Sundays. Similarly, having made it through Monday, a spot of retail therapy on work PCs on a Tuesday may be how a lot of us make it through the start of a new week! Whatever the reasons for buying, these insights highlight the best times and the right devices for marketers to engage with their customers, ensuring they maximise on those high-converting days,” Hancock concludes.