Digital Wallets and How They Save Sales

According to a late 2014 Pew survey, 34 percent of American adults use their smartphones as their primary method of internet access. That percentage is sure to climb as many smartphone users are embracing a new technology—the digital wallet—to assist with easy and fast online shopping. Though it may be surprising that 69 percent of smartphone users abandon their shopping cart when making purchases online (Baymard Institute, 2015), the good news is that brands can use digital wallets to make a sale.

Abandonment Issues

The cause of this mobile shopper abandonment is relatively simple. A lot of website checkouts are not designed for smartphones. These sites were made with the general idea of desktop usage. So for desktop users, entering their payment information online is no big deal. However, getting the card information and entering it into a smartphone with literally the other hand is a bit cumbersome. This is doubly so when users are out of the home and are moving around. When using mobile devices, people abandon their carts because they find the checkout process annoying and not user-friendly. There are solutions though.

Mobile Tech to the Rescue

The advancement of mobile technology has brought with it mobile payment methods in the form of digital wallets. Paypal and Google Wallet are two such well known platforms. Apple also has recently entered the market with their Apple Pay platform. What they all have in common is they allow a customer to pay for goods and services with the push of a button or a password. No fumbling for a card required, as everything is already set up for instant purchase. Most consultants advise brands design and integrate with these platforms for greater ease of use for consumers—helping to eliminate customer abandonment.

Location Relevant Couponing

Digital wallets also allow companies to promote offers that can be geo-enabled. When a user is near your place of business, a reminder will pop up on their phone alerting them to the coupon they have waiting to be used. Additionally, once a user has your business set up in their mobile wallet, you can send them new offers every week. This becomes another communication channel to engage with your customer base and remind them of the value of your products.

How to Engage the Mobile-Wallet User

Early adopters are already using this technology for their day-to-day purchases. However, many of your customers may not even know this technology exists. Consider designing a promotion like an instant win game or a sweepstakes where you can offer prizes, as well as, a “thank you for participating” message that includes mobile wallet offers. This introduces your customers to this method of payment and also allows you to engage regularly with those customers through a new communications channel.

Digital Wallets, the Next Logical Step

Digital wallets are a win for both brands and customers. Setting up such a system is easy, upkeep can be done automatically and digital wallets create new mobile marketing and sales opportunities. This allows brands to stay on the cutting edge of payment methods and mitigate customer frustration by streamlining the mobile purchasing experience. Digital wallets also prepare brands for the continuing growth of mobile data usage. With smartphones and tablets becoming more common these payment methods are soon to be the norm, not the novelty.

Contact MRI today if your brand is interested in discussing ways to encourage your customers to use mobile wallets to buy your products.