Mobile wallet providers ‘failing to realise full potential of loyalty programs’

Mobile financial service providers are failing to fully realise the potential of loyalty programs to drive revenue growth, a survey by customer experience solutions provider Amdocs and consultancy firm Ovum says, while those who employ loyalty programs are “better placed” to increase usage and adoption of their mobile wallet service.

Amdocs and Ovum report “The Impact of Loyalty on Mobile Financial Services and Payments”The survey — based on the responses of 1,800 banked and unbanked consumers and 42 service providers from nine emerging and mature markets — reveals 61% of consumers consider it “very important” and 34% “important” to be able to manage different loyalty cards using a single mobile wallet. Only 33% of service providers currently offer this feature.

The ability to share loyalty points with friends and family is rated “very important” by 46% of consumers and “important” by 42%. Younger respondents — those aged between 16 and 24 — showed even more interest in this feature, with 51% thinking it “very important” and 40% “important”. Only 21% of service providers support this feature, though.

Among the report’s other key findings are:

  • Half of the service providers surveyed offer tiered loyalty programs and, of these, 79% say that the prospect of earning higher tier points encourages customers to use their services more
  • 30% want to receive vouchers through their mobile wallet, but only 22% are currently being offered them
  • 56% are not members of mobile financial services-linked loyalty programs, with a third not being offered such a service at all
  • Only 22% of the unbanked respondents are registered to such a service.

“Mobile financial services providers who employ loyalty programs to engage and retain customers are better placed to increase usage and adoption of their mobile wallet service, thereby driving revenue growth,” says Eden Zoller, principal analyst at Ovum.

“However, they must still address the gaps that exist between what customers want and what they are being offered.”

The nine countries surveyed include emerging and mature markets such as the US, Singapore, Russia, Brazil, Indonesia, Mexico, the Philippines, Bangladesh and Vietnam.