There is tremendous buzz surrounding the value and opportunity Apple’s Passbook create for both consumers and retailers. No longer do consumers have to remember to bring their paper coupons and plastic loyalty cards when shopping. Instead, they can store them on their smartphones and be reminded of offers when they are near a store and when an offer or a promotion is about to end — making them the ultimate shopping companion because they deliver on the promise of consumer convenience. For retailers, Mobile Wallets provide opportunities to easily send personalized offers and distribute dynamic loyalty cards and reward certificates, which in turn translates into increased foot traffic, higher conversion rates and improved loyalty – all through a cost effective location-based marketing program. Our definitive Mobile Wallet Handbook showcases the building blocks of creating and executing successful mobile wallet programs: strategic guidance on how to get started, activation ideas, creative calls-to-action, best practices and design tips and tricks you need to know before you launch your next (or first) mobile wallet program. We will also show you how to optimize your programs to make your customers take notice and action.

Clothing retailer:• 78-percent increase add to wallet rate by shoppers who clicked-through on a call to action (post-click engagement opportunity)• 14-percent redemption rate in-store by shoppers who saved the offer to their wallet (increase in revenue)• 72-percent offer retention rate after the offer expired (creating a perpetual presence on the phone)

Large department store retailer:• 64-percent increase in conversions from mobile wallet over mobile web coupon• 24-percent increase in average order value over mobile web coupon• $2.30 in net revenue for every $1 spent on program costs

Specialty retailer:• 7.7-percent lift in email conversion using mobile wallet• 7.3-percent incremental revenue per email sent• 6.6-percent increase in total sales using mobile wallet

Marketing WorksMobile wallet has proven to be effective. Here are some sample metrics from three retailers:

BenefitsConsumerConvenienceTimely remindersLocation triggers

MarketerGreat way to increase foot trafficHigher conversionAbility to update offers and contentLow cost location-based marketing

Strategy

Distribution

Design

Communication

Optimization

Before you get started with mobile wallet, it’s critical to understand what you are trying to accomplish with the program. These goals can include:Increasing redemption rates for offersDriving additional foot trafficExtending digital loyalty programs to improve overall lifetime value and minimize breakage of reward certificatesOr simply trying to extend your brand promise to address consumer demand for convenience -having your brand’s content centralized in a single mobile wallet on their phone when they are ready to transact Once you’ve decided what is driving you to provide mobile wallet content to your customers, next you want to decide what content to activate and push to the mobile wallet. If you are trying to test and learn, then pick the biggest events/promotions and activate those to learn how your customers interact with your content. Once you’ve got the right offer or event, it’s equally important to understand what success looks like and then set the program up to measure its effectiveness. A great place to start is looking at the promotions you currently have planned – usually around big events or holidays that you have developed an integrated marketing program around. For instance, if you think about Memorial Day – retailers typically run big promotions to drive in-store traffic over the three-day weekend. Is there a promotion you have planned that would work as a mobile wallet offer? Translating a print or online coupon into mobile wallet content is really easy – and

there is no downside to getting that content stored on your customers’ mobile phones so that you have a location-aware channel activated for your big weekend sale. Define what success looks like

Whether launching your first mobile wallet program or your fifth, it is imperative to take an assessment of where you are today, where you want to go and where mobile wallet fits into your overall marketing strategy. Mobile wallet content should be used to communicate relevant promotions or events – and creating a rhythm with your customers will be important to drive adoption. Our recommendation is to start broad with your first program and then continue to refine your strategy, trying different approaches to maximize results with your audience. When you consider that the consumer is the only one that can delete mobile wallet content, you will want to outline the right strategy so that your customers don’t have a dozen promotions in one month stored on their phone. Offer-driven retailers (more than one big promotion per month) are exploring the concept of a perpetual offer – one that stays on their customers’ phones and toggles between active and inactive based on the promotion cycle. Lastly, it’s important to outline KPIs that you want to measure with each program that you run. Test early and test often is our recommendation for marketers running their first few mobile wallet programs.

Things to test include:

• What type of CTAs are driving the highest “add” rates?• What channels are having the highest conversion rates?• What is my redemption rate for mobile wallet compared to

mobile web and email?• What impact will retargeting customers who haven’t added

content to their mobile wallet have to drive additional “adds?”

• What impact does messaging to installed mobile wallet content have on my program results?

 Maximizing reach There are two big players in the non-payment mobile wallet space right now – Android and Apple. It is more critical than ever to make sure you’re addressing the needs of your customers and sending out content that maximizes your reach. When it comes to delivering content, we recommend a single link that delivers device-appropriate content to either an Android or Apple device, as well as a mobile Web alternative for everyone else.

Now that you have outlined your mobile wallet strategy, it is time to get your content onto the phones of your consumers. There are a number of ways to drive engagement by simply activating existing marketing channels with a mobile wallet call to action. Consider all of the ways to drive adoption when deciding how aggressive you want to be with activating your mobile wallet programs.

It is important to note that you don’t need to have an app to distribute mobile wallet content. You can use text, email, direct mail, mobile ads, social media and more. In fact, our recent mobile wallet consumer data* shows that email and text are the two most preferred methods for mobile wallet distribution. Once you have decided the marketing channels you are going to use, it is time to think about your promotion strategy. Be sure to test and measure different methods and channels to find out which work best for your audience. An easy way to do this is to assign different promo codes or keywords to each channel and then work with your wallet partner to close the loop from offer, to channel, to transaction – comparing average order value and redemption rates. Here are some creative calls to action to get your mobile wallet content into the hands of your consumers.

Text is effective because messages are delivered directly to the consumer’s mobile phone with a link to add the offer to their preferred mobile wallet. That link should be device-aware so that it either saves the content to Google Wallet or Apple’s Passbook. Be sure to include the details of the offer in the text message – i.e., 20 percent off denim – so that you have a greater chance of reaching the majority of your smartphone and feature phone audience. Also make sure that your text is compliant and meets Mobile Marketing Association (MMA) and CTIA guidelines.

SMS/Text

A desktop website featuring a hero/banner image with a text call-to-action is a great way to get offers or promotions onto the phones of your consumers, as well as drive opt-ins to your overall mobile database. This can lead to millions of impressions and increased downloads of mobile wallet content, while building your mobile database at the same time.

Include alternatekeywords to trackeffectiveness againstother channels

Website

Social media is another great way to get mobile wallet content onto the phones of your consumers. You can leverage social channels such as Twitter, Facebook, Pinterest, Instagram, etc. and test the effectiveness of each social channel by using alternate keywords.

Social Media

Both Android Pass Pocket and Apple’s Passbook have similar — yet different — approaches to presenting content, with design templates for each. The strongest use cases for most retailers are to activate coupons/offers and promotional content via Apple’s Passbook, but there is another equally impactful opportunity to create digital loyalty cards and reward certificates that can also be stored in mobile wallets. In this section, we will share design tips, tricks and best practices to help you create successful mobile wallet programs that will drive in-store traffic.

Unlike Google Wallet, which has a continuous scroll, Apple’s Passbook template has a defined front and back of the Pass, with multiple content fields allowing for personalized content. The consumer can flip the Pass over to receive additional information and links.

Always make sure your graphics and logos are sized appropriately so they do not get distorted. Your strip image should showcase the offer — make sure the offer amount is prominent and stands out.

The back of the Pass is a great place to store information for the consumer, such as the address of their favorite stores, phone number, store hours, links to website and terms and conditions.

We recommend that you use unique barcodes, which allow you to gain insights into program usage and deeper consumer insights, for both offers and loyalty cards.

You also want to consider consumers that don’t have an Android or Apple device. By using a mobile Web page as the fall back, you still have an opportunity to get them the offer that they can bookmark and save for redemption.

It is best to model the design of your mobile Web content after the Passbook template. The large graphics enhance your brand and make the offer stand out; the same recommendations apply for the use of a barcode with a unique code when possible.

One of the most innovative features of the mobile wallet is the ability to communicate with your consumers through notifications. Both Google Wallet and Apple’s Passbook offer opportunities to leverage notifications as a way to remind consumers of active offers and special promotions, both with a subtle reminder when they are nearby or with an active content push before a promotion ends. In this section, we illustrate how Google Wallet and Apple’s Passbook notify consumers once content has been installed in the mobile wallet.

Lock screen notifications alert consumers that they are near your store or that their Pass has been updated. Make sure your logo is sized correctly so that consumers can easily identify your company on the lock screen and that your notification message is concise — if you include too much copy, it will get cut off. Consumers can access the Pass directly from this lock screen by swiping their finger across the Pass, without having to unlock the phone.

Mobile wallets allow you to run cost-effective, location-based marketing programs. Location delivers one of the biggest promises of consumer convenience. It can remind consumers when they are nearby so that they don’t miss out on an offer or promotion. There are two ways to get location information – you can look at past/historical shopping preferences and customize every mobile wallet experience by passing along that location information. Another option is to give the control to the consumer to choose their favorite locations by adding a location finder mobile web page before they save the content to either Apple’s Passbook or Google Wallet. Here is how you can leverage location to drive in-store traffic.

One of the most powerful features of mobile wallets is that they are GPS-enabled, location-aware devices. You can use latitude and longitude coordinates near your store to trigger notifications. The more precise the location trigger, the better. This means using the latitude and longitude of the closest entrance to your store. It is important to note that with Apple’s Passbook each individual Pass has the ability to store 10 different locations. Once the consumer is within 100-meters of the location, they will receive a notification on their lock screen. With PassPocket, the number of locations is unlimited and the notifications are stored in the notification center of the phone. We encourage you to be specific with your location-based messages. For example “20% off at the Water Tower Mall Style.” is more effective then “20% off at Style.”

Beacon technology introduces a new world of hyper-location targeting (not leveraging GPS) which allows marketers to trigger timely and relevant information to their consumers based on their exact locations within a retail store. iBeacons — which are currently Passbook specific — address the 10-location limit in Passbook because beacon IDs can be shared across stores. With this technology, it is no longer just about the location of your store and receiving a notification due to proximity, these offers and loyalty cards can actually be activated by a customer’s location within a store. For example, if a retailer has an offer for 20 percent off menswear, consumers can receive a notification when they are in the menswear section of a store. iBeacons provide a cost-effective alternative to geo-targeting because you don’t need to invest in large-scale infrastructure. We recommend installing the low-cost hardware in a few stores to test and learn.

You have your mobile wallet program in place, now what? In order to keep your programs fresh and effective, you always want to make sure that you are getting the most value out of your programs. This means you are sending out timely notifications, leveraging and managing locations, testing creative and updating content as appropriate. Here are three ways to optimize your mobile wallet programs.

It’s important to have the right platform that allows you to actively monitor, test and measure your campaigns. This way you can see the effectiveness of each campaign – how many Passes and Objects have been added to the wallet for each program, and how many have been removed. You will also want to conduct A/B testing when getting started so you can identify which tactics are most effective.

Now that we’ve shown you how to run effective mobile wallet programs, it is time to get started. To summarize the key points outlined in this handbook, we put together a short mobile wallet activation checklist to help you either launch your first mobile wallet program or take your program to the next level.  If you are looking for a mobile wallet partner and platform to help you launch and manage your wallet programs, you can contact us at support@passbeemedia.com and a member of the team will be in touch shortly.

Determine use cases for your business and define your objectives

Promote your mobile wallet content through multiple marketing channels

Create your mobile wallet content utilizing design best practices

Leverage location based triggers

Test and measure to get the most value out of your mobile wallet programs

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