There’s a saying in the mobile-payment industry: It’s not about the payment, it’s about the data. In other words, the information that the merchant receives about the customer may be ultimately more important to the business’s bottom line than the amount of revenue earned in any single transaction.
The reason? Savvy businesses can use that information to better manage customer relationships. Here are five ways that mobile payments can support your efforts.
1. Purchase histories: Within seconds, you can access the purchase history of any one customer or group of customers. You can then figure out what the most popular items are and tailor your discounts and promotions to attract repeat business.
2. Geolocation: Most mobile devices have GPS. When a customer makes a purchase using his or her device, your business can store the transaction data and then use it later to identify when that customer comes in close proximity to your business again. You could set up your system to send a text message offering a discount or special offer.
Data collection: There’s a good chance that your bricks-and-mortar customers also buy goods or services from you online. Mobile-payment software has the ability to aggregate data from mobile, website, and in-store sales. This allows you to get a better idea of your customers’ overall preferences.
4. Feedback solicitation: Many mobile-payment software programs enable customers to provide instant feedback. For example, the mobile-payment app for a bar or restaurant may not only allow customers to pay their tabs and tip electronically, but also ask how their service was and solicit comments on what they liked about their experience.
5. Loyalty programs: Mobile-payment systems can simplify your customer loyalty programs. Instead of making your customers produce a discount or punch card every time they visit your business, mobile-payment software can keep track of customer transactions and apply discounts automatically as customers become eligible for them.