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Mobile Financial Service Providers Fall Short of Loyalty Program Expectations

Mobile wallet has done more than make life easier for consumers: It’s also opened the door for mobile financial service (MFS) providers to tap into a vast network of unbanked customers. These people, often low-income and/or residing in emerging markets, are unable to access a traditional bank, and turn to the power of mobile banking (and mobile wallet) as an alternative financial management system.
 
The correlation between these unbanked consumers and loyalty programs is predictable: 80 percent do not belong to any such program. A recent study from CX solutions firm Amdocs explores this relationship and examines what these MFS providers can do to better engage consumers through the use of a loyalty program.
 
“MFS providers who employ loyalty programs to engage and retain customers are better placed to increase usage and adoption of their mobile wallet service, thereby driving revenue growth,” said Eden Zoller, principal analyst at Ovum, the analysis firm conducting the research on behalf of Amdocs. “However, they must still address the gaps that exist between what customers want and what they are being offered.”
 
In a survey of 1,800 consumers and 42 service providers, the company found a substantial gap between the desires of consumers and the options being made available by service providers. For example, 61 percent of those surveyed consider it “very important” to have the ability to manage multiple loyalty programs within the same mobile wallet, but only 33 percent of providers offer the feature.
 
Likewise, 46 percent indicated an immediate preference for the ability to pool points with family and friends, but only 21 percent of companies provide that capability.
 
As the profile and power of mobile financial solutions grow, these institutions must do a better job moving forward of recognizing customer needs and providing them to engage, retain, and build stronger loyalty with customers.
 
To continue this usage growth, the gap between what customers want and what is being made available must shrink, and the company able to do so most effectively will win the lion’s share of these emerging market consumers.
 

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