If PayPal Offered a Mobile Wallet, 8 in 10 Consumers Would Use It

(Source: Marketwatch June 4, 2012, 8:00 a.m. EDT)

CHARLOTTE, N.C., Jun 04, 2012 (BUSINESS WIRE) — Consumers who are interested in mobile wallets* would consider using alternative players to their primary bank for mobile wallets and for banking. These consumers also expressed strong interest in using a wide variety of services in their mobile wallet, such as search & shop, loyalty programs and real-time incentives. These are two major findings from a mobile wallet study conducted by Carlisle & Gallagher Consulting Group (CG, ), a management and technology consulting firm serving the financial services industry.

According to the 605 U.S. consumers who participated in CG’s online study in April 2012:

– Forty-eight percent of survey respondents are interested in a mobile wallet and that interest is driven by both young consumers and affluent consumers. Seventy-six percent of these consumers are currently using or intend to use mobile banking today. This group is divided into two segments:

– Techno Shoppers (27%): Consumers attracted to shopping and social features of mobile wallets, and effectively using their cards to make the best possible payment decisions.

– Payment Optimizers (21%): Consumers interested in making the best payment decisions based on their financial situation, loyalty benefits and account management.

– Eight in ten consumers interested in mobile wallets responded that they would use PayPal as their mobile wallet provider. Six in ten would use Google. Six in ten would use Apple.

– Five in ten Techno Shoppers would prefer to use PayPal over their primary bank as their mobile wallet provider. Three in ten would prefer to use Google. Two in ten would prefer to use Apple.

– Consumers interested in mobile wallets would consider alternative players for banking services. Eight in ten would consider using PayPal if it offered banking. Six in ten would consider using Google. Six in ten would consider using Apple.

“The competitive threat from new entrants is real. Consumers are open to considering alternatives to their primary banks to provide mobile wallets and even core banking services,” said Peter Olynick, CG’s Card & Payments Practice Leader. “People have already slowed their use of cash and checks in favor of credit and debit cards. Within five years, half of today’s smart phone users will be using their phones and mobile wallets as their preferred method for payments. These customers will be using better tools to help them optimize transaction choices. Banks need to proactively consider how their products will stay ‘top of wallet’ in the new mobile wallet world.”

Consumer Frustrations with Credit Cards and Wants with Mobile Wallets

According to the study, consumers place significant value on the benefits of various offers and incentives, from lower interest rates and cash back rewards to discounts and sales coordinated with loyalty programs. However, they are frustrated with the number of offers they receive and with their ability to track the terms and conditions for each of their cards. Mobile wallets provide a systematic way to mitigate these pain points.

– The top frustrations for consumers are the inability to manage offers and incentives, and keeping track of payment due dates.

– Sixty-five percent of respondents rated the ability to make better payment choices — such as maximizing loyalty programs or minimizing interest payments as the most valued mobile wallet service.

– Eighty-two percent of Techno Shoppers responded that making shopping easier was very valuable and 62 percent believe that mobile wallets will make shopping more fun.

“Banks need to ease the pain points with their mobile wallet features to retain customers,” said Olynick. “We advise banks to update their core transaction processing capabilities today so they will be ready to provide improved transaction and shopping experiences in their mobile wallets tomorrow.”

Luxury Brand Apps Shopper Behavior

Sixty-three percent of affluent smartphone shoppers have made purchases via their smartphones

Wealthy Americans have been at the forefront of smartphone app use and mcommerce. And that trend is likely to continue, according to a Q1 2012 study by the Luxury Institute and Plastic Mobile of US consumers with an annual income of at least $150,000.

According to the report, 60% of these wealthy Americans owned a smartphone, of which more than 80% had downloaded an app.

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3 Types of Purchase Paths

Concept Overview:
While marketers would like to think that all shoppers fall into the same model of purchasing decision, the truth is there are many variations. These are the three most common. The trick for brands is to understand (usually though click-stream analysis) which type of path each shopper is on and cater the experience based on that. This is increasingly important in multi channel marketing as we see the majority  of consumers say they are overwhelmed with the amount of content they must process before making a purchasing decision.

The Google Mobile Playbook

The Challenges of Cross-Channel Data Integration

Source: eMarketer, Feb 21, 2012

Marketers fail to deliver real-time customer-targeted brand experiences

Increased consumer demand for more personalized and relevant brand experiences has made customer segmentation and targeting an imperative for companies.

According to a November 2011 survey from Acxiom andDIGIDAY, though the majority of US advertisers and agencies were able to identify and segment their customer base, few were capable of doing so in a way that delivers a personalized experience in real time and across multiple channels.

More than half (58%) of advertisers and 39% of agencies said they were able to track and segment their best customers. However, agencies were more than twice as likely (12%) to be able to incorporate both online and offline data into the segmentation process, compared to just 5% of advertisers capable of this more advanced approach.

By segmenting customers, brands can create the more personalized, relevant experience that consumers now demand—especially from retailers. April 2011 data from the e-tailing group and MyBuys showed 50% of US cross-channel shoppers expect to be offered promotions or merchandise that reflect their past online shopping behavior and purchases. More importantly, 46% of shoppers reportedly would buy more from retailers that personalized the shopping experience across channels.

To accomplish the goal of delivering a truly personalized experience in real time, brands must be able to track activity throughout the customer lifecycle and act on this data immediately across channels. But Acxiom and DIGIDAY found advertisers and agencies have yet to make this work—though many are well on their way.

Less than a third of agencies and 37% of advertisers said they had neither the capability to deliver real-time, personalized customer experiences nor to do so across channels, though nearly half of advertisers and 28% of agencies had the ability to at least perform one of these two tasks.

In December 2011, the Winterberry Group and Interactive Advertising Bureau (IAB) found many marketers hoped to do better in the coming year. Most marketers worldwide planned to focus more closely on customer behavior analysis, and offer optimization and cross-channel touchpoint optimization—tactics required to meet the goal delivering real-time experiences to customers across channels.

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Check out today’s other articles, “Super Bowl Viewers Had Smartphones Firmly in Hand and Social Network Users in Brazil, China More Likely to Engage with Brands Online .”

Are QR codes replacing SMS?

Our two cents:
The short answer is no, despite the fact that some brands are seeing QR codes outperform the typical SMS call to action. The simple fact is that QR code adoption is still relatively low, ~14% in the U.S. Therefore, you’re starting with a smaller pool of people to begin with. We see SMS as still being the best all-around mobile tactic for creating customer loyalty, as many customers use it to sign up for coupons, alerts, etc. This is especially important for brands that target mainstream demographics, e.g., Moms 25-44 with an HHI of $75k or less. It’s common for this demographic to under-index on QR codes, but overindex on SMS and MMS. So at the end of the day, it really comes down to figuring out who your customer and defining their mobile behavior, instead of blindly following tech trends.

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Report: Consumer Media Usage Across TV, Online, Mobile and Social

Nielsen, January 6, 2012
Almost one in three U.S. TV households – 35.9 million – owns four or more televisions, according to a new report on media usage from Nielsen. Across the ever-changing U.S. media landscape, TV maintains its stronghold as the most popular device, with 290 million Americans and 114.7 households owning at least one. In contrast, 211 million Americans are online and 116 million (ages 13+) access the mobile Web.

For more insights on usage and trends across TV, mobile, online, and social media download Nielsen’sState of the Media: Consumer Usage Report.

People don’t understand QR codes, not even college kids

Our two cents:
The central theme in this article is that the QR code process is still overly complicated and non-intuitive. After all, if you really think about it, someone probably showed YOU how to use one. But the most important point from Amy Gaharan at contentious is that until mobile phones and the objects they are meant to engage with become more aware of each other, i.e., smarter, then it will always seem like a hassle.

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