With so much talk in the loyalty marketing world of mobile apps, many brands are left wondering if they really make a difference. According to the 2015 U.S. Consumer Payment Choice Study released by TSYS, mobile apps are a significant piece of the customer engagement puzzle for financial institutions.
The online survey of more than 1,000 U.S. consumers revealed that mobile applications provided by financial institutions are highly adopted and frequently used. In fact, 50% of survey respondents said that they have installed a mobile app from their bank. What’s more, of those respondents, 70% indicated that they use the app a few times a month or more.
“We expect the emphasis on digital engagement and technology to continue as innovation increases and new products become available to consumers,” said John Dale Hester, group executive of Relationship Management at TSYS. “Providing a more robust customer experience and expanded consumer choices will help drive progress and innovation within the payments industry.”
In addition to providing insight into the growth of digital engagement, the study also uncovered drivers of consumer behavior and information around consumer preferences for payment and communication methods.
Here are some other key study findings:
Although debit continues to be the most preferred payment type among U.S. consumers, it has declined during the last two years. Forty-one percent of consumers prefer debit cards, down from 43% in 2014 and 49% in 2013. Credit card preference held steady at 35%.
Loyalty and rewards are important in driving consumer behavior and affecting payment preference. Fifty-five percent of respondents chose rewards as the most attractive feature of their preferred credit card.
When interacting with their financial services provider, email is the most preferred channel of communication among consumers. Forty-six percent reported preferring email communication from their bank regarding purchase transactions.
When asked about the frequency of receiving marketing and special offers, 43% of respondents reported that they would prefer to receive these communications once a month.