Mobile financial service (MFS) providers are failing to fully realize the potential of loyalty programs to drive revenue growth, according to Amdocs/Ovum research. A significant gap exists between what customers want and what they are offered. This is especially true for unbanked users: 80 percent are not enrolled in any loyalty program. The findings also reveal a lack of awareness of the types of loyalty programs being offered.
“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. “However, they must still address the gaps that exist between what customers want and what they are being offered.”
Ability to manage multiple loyalty cards using a single mobile wallet is the most important feature — but not well supported by service providers: The overwhelming majority of respondents consider it very important (61 percent) or important (34 percent) to be able to manage different loyalty cards via a single wallet.
However, only 33 percent of service providers offer this feature. The other important feature that consumers want is the ability to share loyalty points with friends and family. While 46 percent rated this feature as very important and 42 percent as important, only 21 percent of service providers support this. Younger respondents (aged 16-24) showed even more interest, with 51 percent saying it was very important and 40 percent rating it as important.