Increase Member Loyalty with Mobile Payments
February 12, 2013
Feb. 12, 2013
More and more consumers are demanding access to mobile banking from their financial institution, but mobile payments can be more than just an added feature for on-the-go credit union members. Credit unions can also use mobile technology to strategically build and maintain member loyalty through just a few important steps.
Mobile payments are immediate and intimate, giving members the ability to access account information and make transactions from any location at any time. But if done right, mobile payments also represent an opportunity for credit unions to increase member loyalty.
The growth in smartphone adoption is directly affecting members’ loyalty behavior, driving more credit union marketers to develop loyalty offerings that provide instantaneous benefits and recognition. The draw and attractions are straightforward. For members, mobile payments create a less-harried checkout experience and easier expense tracking. For credit unions, they provide new and different opportunities for member engagement, an understanding in greater depth of members’ payment behaviors, and a chance to cross-sell other financial services.
In order to maximize the benefit of mobile technology, credit unions must take advantage of the myriad tools for loyalty marketing offered by mobile technologies, including:
- Membership IDs that are stored centrally (on a digital wallet);
- Points redeemer, an instant program update channel with news and “close-to” reward announcements;
- High-impact communications for location-specific services;
- Delivery channels for rewards, from coupons to games to events to content; and
- Replacement for cards and cash.
Mobile payment has the potential to increase customer loyalty by giving customers what they want, when they want it and how they want it. Mobile payments can increase member loyalty through:
- More information sharing – Mobile payment will provide key information related to members’ payments, accounts or purchases overall.
- Stronger, broader member relationships – A recent ABI Research survey found that 45 percent of smartphone users with a retailer-branded app visit the retailer’s store more often.
- Greater relevance in communications and offers – Once members have signed up for mobile payments, research shows they become more engaged through a channel that offers greater immediacy and intimacy.
- Simultaneous capturing, tracking and redemption for loyalty currency – The use of loyalty points as currency can be facilitated on mobile platforms and stored value cards will enable the use of loyalty currencies at the point of sale system.
- Growth of location-based marketing – With proper opt-in, credit unions can notify members of special loan rates or offers when they are at the auto dealer or shopping at an appliance store.
Strategic Link is the NWCUA’s wholly-owned service corporation, providing the Association’s member credit unions with exclusive high-quality, competitively-priced products and discounted services. To learn more about how the Association’s partnership with MAP can benefit your credit union, contact Director of Strategic Partnerships Craig Reed: 206.340.4789, firstname.lastname@example.org.
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