How digital wallets assist stores in lowering friction and increasing loyalty
22nd May 2023
Written by Tom Peace
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In an article written by Arielle Feger from Insider Intelligence, she writes about the key reasons why convenience is a important factor for in store and online retailors to increase loyalty within their customer base.
Below we will summarise the 3 key points that was mentioned in this article.
🤝 A Win-Win Situation
Digital wallets enable faster checkout in-store by eliminating the need for pin entry or receipt signature. It also reduces the amount of time a customer has to spend entering their payment information. If customers are shopping online this can lead to more impulse purchases and help business with less abandoned carts
📈 Increase Customer Retention
Digital wallets can also assist businesses increase customer loyalty, particularly with repeat and bulk buyers.
In the article, they have used Starbucks as a good example of a company who have built one of the most well-liked loyalty programmes, by using its large number of return customers and integrating payment options into its loyalty programme.
⚖️ Maintain a Balance
Digital wallets can encourage consumer repurchase by promoting engagement and loyalty. However, they can also be a source of conflict because no one will have a unique app for every single retailer they purchase at. A solution to this problem is making sure retailers partner with existing digital wallets, to creating a seamless shopping experience for their customers
Do you agree with the three points that were mentioned? What other points do you consider important for retail companies integrating digital wallet use?
Click on the link below to read the full article published by Insider Intelligence