One of the greatest purposes of marketing is to let people know that a new product or service is available, and provide some reasons to use it.
There are many ways to accomplish such a task, but the point is to get users from complete ignorance of the product to eager acceptance.
Sometimes, the marketing only half-succeeds, and raises awareness without corresponding use, and figuring out why can be difficult.
A recent look at the market from TSYS’ strategic marketing director Morgan Beard offered some explanation, and some insight on what firms can do to change this.
TSYS found one major issue holding users back, and that one a surprisingly familiar issue: security.
With smartphones now at an excellent market penetration level, and many stores starting to take the payment system, all that was left was to address the ongoing customer concern of security.
That’s starting to change with things like fingerprint scanners and selfie security, but it’s still an issue that badly needs addressed.
Additionally, there are some issues of value at stake here; while customers are enjoying the concept, more than a few aren’t seeing much reason to switch from cash or payment cards to a mobile device. That’s also a point that’s holding customers back.
It’s good to have these points in mind, because it allows the marketing to be recalibrated accordingly.
Now that we know customers are aware of mobile payments, we can change things up to focus on how customer data is protected, and what companies will do in the event of a breach to keep customers safe.
Also, payment vendors can focus on rewards programs and the like, things that cash and cards can’t immediately do. With these points in mind, the payment industry can go more rapidly from awareness to use.
The marketing has made an excellent start so far, and put mobile payments systems on a lot of people’s minds.
Until it can show clear value, usage will always be hampered and limited to the early adopters who look forward to every new technological development because it’s new.
With so many walled gardens involved—Apple Pay only on Apple devices, for example—marketing might be more difficult, unless the niche markets involved get closer focus.
Half the job is done, however…and that just leaves one big half to go.