Maximising Customer Lifetime Value through Mobile Wallets

We’ve said it before, and we’ll say it again: mobile wallets are about more than just transactions. With rapid development in the technology, they’re quickly becoming an indispensable tool for retailers looking to optimise customer lifetime value (CLV).

CLV, in simple terms, quantifies the total profit a customer brings over their entire relationship with your brand. In a fiercely competitive retail landscape, retaining satisfied and loyal customers is crucial, and digital wallets offer unique advantages in achieving this. Let’s take a look at how they improve transactions, unlock powerful marketing opportunities, and optimise rewards programs to maximise CLV.

Understanding Modern Customer Expectations

Customers demand omnichannel experiences — meaning, seamless and consistent brand interactions across online and physical touchpoints. Any friction in this journey can damage customer relationships with brands. 

According to a 2021 survey of Australian consumers, 36% abandoned their carts due to security concerns, and 35% found the checkout process too long or complex. Additionally, 32% were discouraged by the need to create new accounts. These statistics reveal genuine customer pain points that mobile wallets can effectively address.

Convenience, Loyalty and Engagement

It’s not just a matter of convenience for shoppers. While mobile wallets simplify checkout processes, they also eliminate the need to manually share sensitive information, and provide customers with a means of secure in-app transactions. This, in turn, results in increased customer satisfaction and positive brand perception, which can ultimately lead to repeat purchases and stronger brand loyalty — here’s how:

Increased seller credibility: Customers inherently trust established platforms like Apple Pay and Google Pay, ensuring a sense of security during checkout.

Seamless checkout: Mobile wallets automatically fill in shipping and payment details, eliminating the pain points of traditional methods and addressing security concerns.

Frictionless loyalty program management: Customers can easily earn and redeem rewards at the point of sale, making the entire shopping experience smoother and more enjoyable.

But the benefits extend beyond convenience and security. Mobile wallets open doors to improved customer engagement and targeted marketing:

Personalised offers: Mobile wallet data can be leveraged to tailor offers based on purchase history, demographics, and preferences. Imagine sending exclusive discounts or product recommendations directly to a customer’s mobile wallet, increasing the likelihood of redemption and driving engagement.

Location-based marketing: Using mobile wallets, retailers can send targeted promotions or notifications based on a customer’s proximity to their store. This can be particularly effective for driving foot traffic during off-peak hours and boosting sales.

Enhanced loyalty programs: Integrating your loyalty program into customers preferred mobile wallet allows them to easily track points, redeem rewards, and receive notifications about upcoming program benefits. This incentivises repeat purchases and builds brand loyalty.

Statistics also reinforce the importance of mobile wallets in the Australian retail landscape. In 2022, 95% of in-person card transactions were contactless, and 38% of consumers made purchases using their smartphones or smartwatches. Over 15.3 million payment cards are currently registered to mobile wallets in Australia.

Integrating Mobile Wallets with Loyalty Program and POS Systems

However, the true power of mobile wallets lies in their ability to transform loyalty programs and elevate the customer experience from the point of sale. Traditional loyalty programs often operate as separate entities, requiring customers to use a dedicated app or card to earn and redeem rewards. While this may have worked in the past, the data tells us otherwise. Even historically successful rewards programs like Woolworth’s Everyday Rewards have recognised the potential CLV benefits of mobile wallet integration and made the digital leap.

Here’s how integrating loyalty programs with POS systems and mobile wallets works:

  • Customers link their loyalty memberships to their preferred mobile wallet.
  • At checkout, they simply tap their phone to pay, and the system automatically identifies them and tracks their purchase.
  • Points are awarded and redeemed instantly based on predefined rules, and available rewards are visible within the mobile wallet.

What this means for customers:
Convenience: No need to carry or scan separate loyalty cards.
Real-time updates: Easy access to points balance and available rewards directly within the mobile wallet.
Reduced frustration: Eliminates the need to download and manage additional apps.

What this means for retailers:
Increased engagement: Customers are more likely to participate in loyalty programs due to the ease of use.
Personalised offers: Transaction data allows for targeted promotions and rewards based on individual customer preferences.
Valuable customer insights: Access to valuable data about customer behaviour and buying habits.

The Litecard Advantage

While the advantages of mobile wallets are evident for both customers and retailers, choosing the right platform to facilitate integration can be crucial. Building your own app can be a costly investment that may hit or miss — more than 90% of mobile app users abandon an app within 30 days of download. This is where Litecard steps in, offering a ‘plug and go’ centralised integration solution specifically designed to unlock the full potential of mobile wallets and loyalty programs, maximising your customer lifetime value:

Seamless and secure integration: Litecard provides a smooth integration process for your existing POS systems and leading mobile wallets like Apple Pay, Google Pay, and Samsung Pay. This ensures a secure and user-friendly experience for your customers.

Customisable loyalty solutions: Litecard doesn’t offer a one-size-fits-all approach. We work with you to design a personalised loyalty program that aligns with your brand’s unique offerings and customer base. This allows you to tailor rewards, personalise engagement strategies, and ultimately achieve your specific business goals.

Real-time data and insights: Litecard empowers you with real-time data and insights into customer behaviour and program performance. This valuable information enables you to make data-driven decisions, optimise your marketing efforts, and continuously refine your loyalty program for maximum impact.

Scalability and expert support: Whether you’re a small business or a large enterprise, Litecard offers scalable solutions to meet your evolving needs. Additionally, our team of experts provides ongoing support and guidance to ensure your success with mobile wallet integration and loyalty program management.

If you want to know more about how Litecard can help you maximise the benefits of your loyalty program through mobile wallet integration, get in touch for customised loyalty solutions and a demo of our services.

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