Mobile payments, powered by debit cards and loyalty programs, could rise by a compound annual growth rate of 80% between 2015 and 2020.
A new study by ZipLine, a provider of private-label debit mobile and card payments to the convenience store industry, shows that consumers who join payment-powered loyalty programs spend more and visit more frequently.
In the 2017 ZipLine Purchase Lift Model Study, consumers who joined one of ZipLine’s payment-as-loyalty programs showed an overall 35% lift in both transactions and fuel gallons sold. It also indicated that among customers who join a private-label debit loyalty program, 83% become active users.
Participating convenience store operators saw chain-wide increases of:
- an average of four visits per member per month (compared to three visits during the first month of program implementation);
- an average of 44 gallons per member per month (compared to 33 gallons);
- an average 93 dollars spent per member per month (compared to $70).
The heaviest participants in the loyalty program, called Super Adopters, showed a 135% increase in purchasing above their initial purchasing behavior.
Until now, traditional retailers were limited in their ability to collect this level of data.
Kristin Bailey, ZipLine chief marketing officer said, “Online, retailers can easily track when people shop and what they shop for. By replicating the data-driven models online retailers employ, convenience store operators can create personalized shopping experiences for individual customers. This is the future of loyalty programs.”
BEHAVIOR PATTERNS
For example, customers who regularly grab lunch on the go could be rewarded with an expanded selection or a sweet treat at checkout. “The key is to identify consumer interests by analyzing their behavior patterns, then to deliver something more than they’d ever expect,” added Bailey.
Building on the findings of the study, ZipLine will introduce a new program, ZipLine Rewards, in spring 2018. This program will provide retailers with next-level technologies, including mobile technology, providing customers with relevant rewards that motivate loyalty and, in turn, increase sales.
According to Business Insider, debit cards now represent 70% of all payment cards and will continue to grow in usage. It also estimates that mobile payments, powered by debit cards and loyalty programs, could rise by a compound annual growth rate of 80% between 2015 and 2020.
For the study, ZipLine analyzed historical data for 165,000 members enrolled between January 2015 and December 2016.