How Mobile Wallet Can Increase Your Mobile Conversions

Guest Post By Sophorn Chhay

One of the major reasons that consumers hesitate to buy a product or service via their mobile phones, tablet or other device is that they are concerned about someone hijacking their sensitive personal information. Mobile security protocols, although rapidly increasing, have historically been weaker than firewalls and other protection on business and personal computers. One way to stop this concern from derailing your mobile marketing strategy is to make it easy for your customers to use a mobile wallet program. With a mobile wallet, no sensitive information is exchanged, so the possibility of fraud is virtually eliminated.

What is a mobile wallet?

Mobile Wallet systems allow consumers to complete a financial transaction without having to transmit sensitive personal and credit or debit card information. Although there are several different models, they all operate by completing a financial transaction using a third party vendor with whom the customer already has a relationship. This is often a bank or telecommunications company, but it can also be a cloud-based service. The customer pays for your product or service by texting a SMS message to the third party who transfers the money to your account. The customer is billed on his or her telephone or bank statement.

Although security is the number one reason why mobile wallets are a good idea for both consumers and merchants, it isn't the only reason to embrace this technology. Being able to just wave a mobile device or let a cashier scan their watch makes it easy to complete transactions, allowing you to serve more customers and reducing each customer's wait time.

Allowing customers to pay with a mobile wallet system can also help you attract more affluent, tech savvy customers, those with Apple watches and other devices that mesh well with mobile wallets.

Good uses for mobile wallet in e-commerce

Approximately 56 percent of American consumers own a smart phone and around 36 of all web traffic comes from mobile devices. If you haven't made mobile marketing a key part of your overall market strategy, you're likely losing ground to your more mobile-friendly competitors. Unsure of how to make good use of mobile wallets to enhance your mobile marketing?

We have a couple of suggestions:

1. Offer e-coupons.

Mobile wallets are not just about paying for goods. They can be used to transmit and redeem e-coupons and other special offers. And, e-coupons are much more likely to be used than traditional paper coupons that can easily be lost or destroyed. Approximately 50 percent of such e-offers are used.

2. Start a customer loyalty program for your mobile customers.

More than 90 percent of customers feel they get value from belonging to such loyalty programs. Use them to invite good customers to special events, offer value-added offers or make them the first to know about new products and services.

3. Inform your customers of your new mobile wallet capability.

Just being able to process payments via mobile wallets isn't enough. Your customers need to know about your new business savvy. Use this new capability as a reason to reach out to your tech-savvy customers and invite them to your store or website.

Adding mobile wallets to your business arsenal of marketing weapons doesn't have to be difficult. Like credit card processors, you sign up for a service and pay a fee based on the number of transactions and the amount of money that changes hands. However, since mobile wallets can help you attract more customers and process those customers more quickly, you'll almost certainly see a boost in your bottom line.

 

What's Next?

How do you ensure that your customer is getting the best mobile experience possible when interacting with your brand? What do you think of what I've covered so far? Reach out over LinkedIn.  

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