When we look at our Technographics data on mobile banking adoption by bank, it’s clear that some banks are doing much better than others. Why?
Some banks are lucky. Some banks have distinctive brands or propositions that have earned them a customer base that is younger, better educated and higher income than the population as a whole. These customers are more likely to own smartphones, more like to use the mobile Internet, and more likely to be technology optimists. That makes them pre-disposed towards using mobile banking and so relatively easier to persuade to adopt mobile banking.
Others have just worked hard. The rising tide of mobile Internet adoption is not raising all boats at equal speed. Some banks have persuaded far more of their customers to use mobile banking than others. The secret of their success? The digital banking teams at the most successful banks have worked long and hard to design, build and promote mobile banking services that meet their customers’ needs.
Last week, we had the opportunity to have a conversation with one of the world’s, and certainly Canada’s, largest premier coalition loyalty programs, theAIR MILES Reward Program. It has penetrated two-thirds of Canadian households, with 10 million active Collector accounts in Canada. AIR MILES is also deeply entrenched in the mobile landscape, having launched the first coalition loyalty program app of its kind in Canada for mobile and tablet, which has since had more than 800,000 downloads. Here are a few nuggets from what we learned about Canada’s increasingly sophisticated mobile landscape:
Immediacy reigns. The most used feature in the application is real-time updates. Mobile phone users pull out their phone throughout the day to access real-time and geo-specific updates on deals and offers at nearby participating retailers. Activity shows that the habit influences the consumer’s decision about where to shop and drives in-store sales.
iOS users are the most active by far. Compared to Android and RIM users, iOS users are by far the most active on their mobile phones. More than 80% of the downloads are from an iPhone with that group being most active.
Mobile engagement drives ROI. When it comes to mobile,any engagement level is positive. This loyalty program found that when users engage with the mobile app, their in-store spend increases anywhere between 5% and 21%.