Article
January 30, 2020, 6:16 PM EST
How Digital Wallets Create Retail Opportunity
As more people embrace the powerful, convenient tools their phones offer, a growing number of shoppers are leaving their physical cards and wallets at home, opting to transact via mobile instead. Here are some of the core opportunities mobile wallets afford retailers.
1. Digital access-on-demand
Consumers are inundated with cash, coupons, fobs and other items that bulge wallets and purses. But they are finding digital solutions more efficient and convenient, whether the point-of-sale is a checkout counter, airline gate or social feed. The on-demand, seamless availability can be a differentiator among businesses — enhancing customer experience and driving loyalty.
While the adoption of mobile payments may be taking longer than originally predicted, it is here — and will accelerate. Consumers spend about 50 minutes in shopping apps per month, and nearly a third of last year’s Cyber Monday sales came from mobile devices. Mobile payment options offer shoppers additional utility – and the ability to add most general purpose and store cards to their wallets. In general, mobile offers:
- A faster authorization process than chip/EMV
- Flexibility and choice in payment option
- Better security features than physical cards
- The ability to transact when a customer has no physical card or cash on hand
Already today, many shoppers happily leave their cash, cards, coupons and tickets at home and rely solely on their phone for purchases. In fact, 60 percent of consumers believe they’ll shop completely wallet-free as early as 2025, according to the 2018 Synchrony Digital Study.
Shoppers who consolidate their loyalty accounts into mobile apps and wallets no longer have to hunt for cards, much less the account numbers, passwords and other login information that is notoriously hard to keep track of. Mobile access to loyalty offers and program benefits is instantaneous and convenient, incentivizing shoppers to participate more often.
Mobile tools also allow retailers to better understand their customer’s habits, their preferences and rituals. Thanks to powerful AI services that are now readily available to any size retailer, all that collected data can be put to use crafting deeply personalized offers and promotions that are relevant and effective. That’s a huge deal: 50 percent of consumers say they would shop more at their favorite brands if they were to receive personally relevant mobile offers. And according to Synchrony research, of those who use mobile tools, nearly 70 percent are motivated by offers and discounts.
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If you don’t collect, retain, organize and access customer information, it’s time to start now.
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What it all adds up to
Customer information is plentiful and accessible. The next leaders in retail innovation are building the most insights and acting on them quickly and accurately.
What does getting ahead look like?
- Data drives deeper insights. If you don’t already have a plan in place to capture customer data, start small and scale up.
- Frictionless transactions spur instant purchases. Identify opportunities to break down barriers in your shoppers’ experience with your business.
- Customer preference shapes customized experiences. Shift how you think about your customers from one or a few “personas” to individuals with unique tastes to be served personally.
- Mobile enables omnipresent storefronts. Reconsider what it means to be a “store”, and ensure that all customer experiences across in-store, online, and social channels work together seamlessly, as well as how one can strengthen the other.
For more insights on the new, now, and next in commerce, payments, and technology, click below to learn more.
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...customer loyalty is built on services and experiences – not just products and points.
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This content is subject to change without notice and offered for informational use only. You are urged to consult with your individual business, financial, legal, tax and/or other advisors with respect to any information presented. Synchrony and any of its affiliates (collectively, “Synchrony”) makes no representations or warranties regarding this content and accept no liability for any loss or harm arising from the use of the information provided. All statements and opinions in this video are the sole opinions of the interviewee. Your receipt of this material constitutes your acceptance of these terms and conditions.
