The current economic climate is driving consumers to seek out ways to cut costs. Therefore, retailers of e-commerce must focus on personalized mobile content. They should not underestimate the impact of a single message that’s inappropriate or misaligned.
Mobile Engagement Platform Vibes You can also find out more about the following: Industry Dive In November and December of 2022, we surveyed 1,001 mobile-centric customers to better understand how they relate to mobile retail.
The aim was to determine how and how often mobile shoppers interact with brands via their smartphones. The 2023 Mobile Consumer Trends Reports revealed some unexpected and surprising insights. One of the major trends was an increase in the use digital wallets Connected with Mobile Store Apps
In-store promotions or exclusive offers in stores may encourage some consumers to activate push notifications on their mobile apps and subscribe to text messages. Nearly half (42%) of consumers said that they would prefer to visit the physical location of a company to avoid shipping fees.
The researchers were most impressed by the unambiguous and persistent consumer excitement surrounding the personalization Jay Hinman Vice president of marketing for Vibes, says SMS is a great way to communicate with people. The survey revealed that 70% of respondents use SMS to interact directly with their favorite brands.
He told The E-commerce Times, “We view mobile wallet as an increasingly important channel brands can use to maintain a continuous two-way dialog with their clients.”
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Hinman explained that the Vibes Wallet Manager, for example, helps brands to drive customer downloads permanent wallet passes such as loyalty, membership, and gift cards, which expands each brand’s reach. It is a real complement to their apps.
The report is primarily focused on mobile wallets that Vibes users are most familiar with, like Apple and Google. This is where Vibes sees the action on consumer devices.
The report does not mention other online banking options than the major digital wallets. Hinman believes that this was more due to the questions not being asked, than it is a statement about online banking.
“Clearly, it is a trend which is on the rise. I am still amazed at how all my deposit checks are done now by taking pictures of them rather than driving around to the ATM. “It will take me two more years to get used to this great leap forward”, he joked about his adoption digital and mobile payments methods.
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The survey revealed that 40% of smartphone owners would happily give brands their zip codes, names, mobile numbers, and other non-party data for better personalization. Hinman predicts that this data will show how these exchanges are only going to get better over time.
The current global economic climate is responsible for a part of the growth in mobile shopping convenience. He believes that mobile wallet adoption is less driven by macroeconomic conditions like interest rates or banking problems.
Customers want brands to send them all sorts of messages.
Source: Vibes and Industry Dive’s StudioID 2023 Mobile Consumer Trends report
More brands are realizing that they must bridge the gap in engagement by connecting low-engagement but high-reach channels such as email with high-reach but low-engagement ones like a brand’s mobile app.
They see that the download and open rates are low for the first. Hinman stated that they see a simple way to give their customers a way to interact with and store digital offers, loyalty cards and other items.
According to the survey, over 70% of smartphone customers would likely save or redeem mobile wallet offers and coupons that personalized their names and matched their shopping preferences. This tendency for personalization can be used to increase engagement and encourage users to redeem coupons in stores.
Age Factors Mobile Adoption
The age of the consumer is another factor that affects their perception of using mobile devices to pay and shop.
Source: Vibes and Industry Dive StudioID 2023 Mobile Consumer Trends report
Consumers under 55 are interested in using mobile wallets to store loyalty cards instead of a physical card.
One out of every two consumers aged between 25 and 54 years old is interested in a mobile loyalty card that they can save in their phone.
Hinman also agreed that there will be a generational gap in 2023. Mobile wallets are one example. Hinman agreed that consumers under 55 were more eager to use their devices for paying for items, engaging with offers, and storing loyalty cards and tickets.
Hinman’s other big surprise was that 28% of consumers below the age of 40 said that they stopped receiving communications from brands because of a lack of communication.
He quipped: “I am sure that every brand marketer is interested in knowing who these 28% are at this moment.”
Report Highlights
Mobile messaging continues its growth as a popular marketing channel. Nearly 70% have received push notifications and text messages from brands on their mobile phones.
Saving money is a major concern when it comes to shopping. Nearly half of consumers surveyed said that avoiding shipping fees would be the most motivating factor to visit a physical location.
Nearly one in five smartphone users (19%), who didn’t use their phone to redeem coupons and offers from stores last year, plan to do so this year.
One in ten smartphone users plan to perform activities that they have not performed in the last year.
Source: Vibes and Industry Dive’s StudioID 2023 Mobile Consumer Trends report
About half of consumers who get push notifications or receive SMS messages from brands state that their primary motivation is incentives or coupons, such as dollar-off, percentage-off, free gifts, or free shipping. Almost half of consumers, or 46% are motivated by loyalty rewards, such as reward points.
Smartphone users also cited the following reasons for turning on push notifications in a mobile app and signing up to get text messages:
- Informational or product updates, e.g., flight notifications, account balances, shipment information — 33%
- Exclusive content e.g. sneak peeks at new products, deals, etc. — 31%
- Store news and events. For example, information on the new store locations. Special events are held in select stores. — 25%
Final Thoughts
Hinman said that the report indicated a trend of consumers using multiple loyalty programs to find the best deals through comparison shopping, rather than focusing on just one.
Most of us began our loyalty journeys by registering with hotels and airlines. But now, it’s easy to take your loyalty cards and offers from Chipotle or Starbucks with you. “It’s easier to look at Apple Wallet or Google Wallet and decide where to go for lunch, then pay with your device,” he said.
Ninety-nine per cent of U.S. consumer said that they are more inclined to join a program which does not require them carrying a physical loyalty card. Add to this the fact that 75% of loyalty members say they will engage in a rewards program, if they can easily access it on their phone.
Brands that want to engage and retain their loyal customers in a seamless manner should consider a mobile wallet. Hinman concluded it was one of the most effective ways to bridge engagement gaps between the brand’s app and traditional email.
