Key Strategies Adopted by Mobile Wallet App Companies for Driving Consumers
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The mobile wallet industry has been on a rapid growth trajectory. The overcrowded mobile wallet space in the app store is the living testament of it.
The growth in the industry has been further spurred amid Covid-19 as cashless payments became a new norm.
While most customers rely on the options provided by their smartphone vendors, like Apple Pay, Samsung pay, or Android, the others are depended upon the top market players ranging from tech firms like Google wallet, Paypal, Venmo and other card issuers.
With that exponential growth, a digital wallet app company would no wonder expect to see an increased adoption.
Through this article, we hope to provide the key strategies one should follow after a successful mobile wallet app development to ensure a fast and successful market entry.
We will highlight the competitive nature of the market and shed some light on its predicted future trajectory and the challenges that the industry must overcome in order to continue its growth momentum.
Generally, the online payment market players group their marketing strategy as per segmentation, targeting and positioning.
- Segmentation helps in grouping the market in smaller groups having same or similar taste/ preferences/ choices.
- Targeting strategy helps companies to address the dynamically changing needs of the customers.
- Last Positioning strategy helps in increasing brand visibility in diverse markets amongst the customers globally.
1. Segmentation Strategy
Mobile wallet app companies can adopt two types of segmentation strategy: Psychographic and Demographic.
In psychographic strategy you will carry out promotions taking into account your consumers buying behavior based on his/her lifestyle, interests in activities, and social background of the customers.
While in demographic strategy you will group your customers on variables such as age, gender, income, religion and nationality. This demographic segmentation will help you divide a large population in chunks of similar customer groups.
This segmentation will help you derive:
- How profitable is each customer segment?
- What is the lifetime, or total, customer value (TCV)?
- What cross-sell and/or up-sell opportunities exist?
As a result, carrying out promotion based on this segmentation will help you in market expansion (E.g. if you know your customers uses mobile banking features like balance check, fund transfers and remote payments) you can expand in similar range (e.g. by offering them digital wallet services and near-field communication payments).
2. Targeting Strategy
After a successful segmentation, next step comes deciding a targeting strategy (a subset of segmentation). To implement targeting strategy, mobile wallet companies should work on concentrated and mass marketing.
In concentrated target marketing you will carry out promotions in a well-defined population or a specific market niche (E.g. targeting users interested in personal financial management tools).
You can do this by gaining market intelligence, understanding consumer purchasing trends, and planning your routes to market through custom mobile wallet app development.
In mass marketing you will present the same product to the entire targeted market.
3. Positioning Strategy
Positioning marketing means you have to design a unique brand image with your service offerings that fits in your target market’s mind.
You can develop a position strategy by following ways:
- Positioning by unique mobile wallet app features
- Positioning by offers and deals
- Positioning by app behavior or user experience of mobile wallet app
- Positioning by different culture and symbols (country-based culture)
In the digital payment industry you may face competitors based on the factors such as:
- User-friendly interface
- Convenience of transaction
- Customer service
- Features, offers and deals that attract customers
Most payment industries have evolved their mobile app strategies by segmenting their customers to improve their product cross-selling, customer retention and acquisition efforts.
Just after mobile wallet app development, you must also work on which consumer segment you wish to target through your mobile offerings. This strategic investment will help you drive market differentiation for long time.
Related article: Cost and Features of Mobile Wallet App Development
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