Panelists discussed some of the ways that companies can leverage consumer shopping behavior to build profitable mobile solutions at the 5th Mobile Contactless Payments Innovations Conference in Chicago on Tuesday.
Though mobile payments are increasing, there is still plenty of room for growth, according to Steve Casco, founder and president of CardNotPresent.com, pointing out that purchase is fifth on the priority list on how consumers use their mobile phones, trailing product reviews and product information.
The key is to guide consumers to use their phones for payment, Casco said, adding that there are countless times that consumers are talking, texting or otherwise using their phones while at the same time using a payment card at point of sale, rather than using the phone instead.
Chad E. Brizendine, brand manager for Procter & Gamble, said that his company is looking for a way for successfully offering digital coupons. Previous attempts have not been successful. Mobile might provide a better underlying technology, though the company is not discussing any current or future digital coupon strategies. Any mobile strategy would involve more than simply offering discounts.
“Sending e-mails is no longer enough; we have to be able to engage with the customers,” Brizendine said. One of the most successful ways that the consumer goods company is engaging the customer is through the product reviews. Customers weigh these reviews much more than price in making their purchase decisions.
But however the brand engages customers, it has to be a seamless experience, Brizendine said.
Location-based services, such as Shopkick, are also gaining traction, Brizendine said. Earlier this week, shopkick announced that it had integrated Scandit’s barcode scanning technology to further increase user engagement with consumer products in retail stores. The new scanner can capture barcodes from any angle before the camera even focuses, and represents the latest in mobile image recognition technology. Scandit supports various devices across iOS and Android platforms.
Others see content as one of the critical drivers of mobile payments continue to grow.
“Content is king,” said Dan Rosen, founding partner of Commerce Ventures, a sentiment that other panelists echoed. “But the content has to be relevant.”
Panelists agreed that one of the major battles will be for real estate on the consumer’s phone. Just as in the payment card world, any mobile payment system will be in competition to be “top of wallet” for digital payments.
Retailers have to be cautious about gathering customer data, Kurt Karlenzig, senior vice president, global digital strategy, The Marketing Store. Customers should be able to opt in for programs that track their data.
“Retailers have to be real transparent about them,” Karlenzig said.
Panelists also recommended that companies looking to leverage mobile payments should no longer limit their efforts to wealthier consumers. Even though today 60 percent of smart phone users earn more than $100,000 annually, there is tremendous growth in the users who have a median income of as little as $50,000.
“The gap is closing quickly,” Karlenzig said.