The act of paying cannot typically be circumvented in the shopping process, but it can be elevated. By going beyond just offering a branded payment solution to creating one that actually makes life easier or adds real value for customers, brands can generate greater loyalty and engagement.
One way to do this is through branded value—a branded object of value that can be accepted in payment or exchange for another product or value. Branded value can include things like gift cards; loyalty points; rebates; alternative payments like mobile wallets, app payment methods, and contactless payment methods; and targeted offers.
A new Blackhawk Network study found that branded value solutions, including mobile and contactless payments, are being used at high rates—36 percent of survey respondents reported regular use of these payment options. The research also found that branded value in the form of mobile or contactless payments can make consumers feel a greater affinity to brands, which drives incremental spending. For example:
• Twenty-six percent of the alternative payment users surveyed feel more loyal to the brand/retailer in question.
• Seventy-seven percent of those surveyed would likely recommend a retailer offering a form of alternative payment (like a mobile wallet).
• 78 percent also believe that a retailer offering a form of alternative payment increases the likelihood of them making a purchase.
Additionally, the survey found that branded value can be a path-to-purchase motivator, as branded value rewards can motivate consumers to convert at ecommerce checkout. Eleven percent of survey respondents said a mobile payment option would motivate them to complete an online purchase.
Mobile or contactless payment branded value solutions can also be a good way to drive customer acquisition as they provide strong motivators for shoppers to try something new. Thirty-five percent of the alternative payment users surveyed indicate that an alternative payment option has prompted them to try a website or store they otherwise wouldn’t have tried.
Brands are as powerful as ever, but using mobile or contactless payments as forms of branded value can boost consumer connections to create more complete, engaging mobile commerce interactions.
To download the complete “Branded Value: Rewarding Experiences Driving Consumer Engagement and Spending” ebook, visit: http://bit.ly/2pWNUfT
1 “Branded Value: Rewarding Experiences Driving Consumer Engagement and Spending” is an Internet-based survey conducted independently by Leger on behalf of Blackhawk Network in October 2016. The sample size included 1,034 American respondents ages 18+.