5 Ways Mobile Wallets Are Driving Customer Lifetime Value
It’s no secret–happy customers are the key to a successful brand.
Loyal customers are repeat buyers, spend more on average, and will organically promote a brand to their social circle. They are also cheaper to retain than acquiring first-time customers because they’ve already had a positive experience with the brand.
While marketers use all sorts of programs and strategies to retain current shoppers, one of the most powerful channels is the mobile wallet.
Mobile wallets have had a significant impact on customer lifetime value (CLV), which refers to the total amount of revenue a customer generates for a business over their lifetime.
Here are some ways mobile wallets have affected CLV:
1. Increased convenience
Our smartphones come with us everywhere–including on shopping trips. The quick swipe of a phone is far more convenient than rummaging through a purse or pocket for the right amount of cash or credit card. Mobile wallets have made it easier and more convenient for customers to make purchases which can lead to increased purchase frequency and higher CLV.
2. Improved customer experience
Mobile wallets provide a frictionless customer experience which improves customer satisfaction and loyalty. Whether a consumer is making a purchase, redeeming a coupon or offer, or checking in to their loyalty program, it can all be done through the mobile wallet.
3. Enhanced loyalty programs
Mobile wallets can function as the centerpiece for brand loyalty programs, rewards, and incentives, which encourage customers to make repeat purchases and increase their CLV. Mobile wallet loyalty cards are more convenient than carrying around numerous plastic loyalty cards. They are also far more engaging with opportunities for 1:1 messaging and notifications between a brand and their customers.
4. Increased engagement
Mobile wallets can be used as a tool to distribute personalized offers and promotions based on a customer's purchase history, which can increase engagement and lead to higher CLV. Personalization is key.
5. Enhanced security
Mobile wallets provide an added layer of security to transactions, which can increase customer trust and loyalty, and encourage repeat purchases. With additional security measures like Near Field Communication (NFC) and biometric authentication, mobile wallets are secure without adding friction to the checkout experience.
Key Takeaways
Overall, mobile wallets have the potential to significantly impact CLV by making it easier and more convenient for customers to make purchases, enhancing the customer experience, and providing personalized incentives and rewards. Businesses that leverage mobile wallets effectively can increase customer loyalty, engagement, and CLV over the long term.
