Amdocs Survey: Mobile Wallet Providers Not Realizing Full Potential of Loyalty Programs – Losing Out on Huge Revenue Opport...
February 13 2017 - 6:00AM
Amdocs (NASDAQ:DOX), the leading provider of customer experience
solutions, today announced the findings of a consumer and service
provider survey, which showed that mobile financial service (MFS)
providers are failing to fully realize the potential of loyalty
programs to drive revenue growth. A significant gap exists between
what customers want and what they are offered. This is especially
true for unbanked users: 80% are not enrolled in any loyalty
program. The findings also reveal a lack of awareness of the types
of loyalty programs being offered.
The survey, which was commissioned by Amdocs and
conducted by analyst and consultancy firm Ovum, focused on banked
and unbanked users of MFS worldwide. It surveyed 1,800 consumers
and 42 service providers across 9 countries in emerging and mature
markets including the United States, Singapore, Russia, Brazil,
Indonesia, Mexico, the Philippines, Bangladesh, and Vietnam.
“MFS providers who employ loyalty programs to
engage and retain customers are better placed to increase usage and
adoption of their mobile wallet service, thereby driving revenue
growth,” said Eden Zoller, principal analyst at Ovum. “However they
must still address the gaps that exist between what customers want
and what they are being offered.”
Key survey findings
- Ability to manage multiple loyalty cards using a single
mobile wallet is the most important feature—but not well supported
by service providers: The overwhelming majority of
respondents consider it very important (61%) or important (34%) to
be able to manage different loyalty cards via a single wallet.
However, only 33% of service providers offer this feature. The
other important feature that consumers want is the ability to share
loyalty points with friends and family. While 46% rated this
feature as very important and 42% as important, only 21% of service
providers support this. Younger respondents (aged 16-24) showed
even more interest, with 51% saying it was very important and 40%
rating it as important.
- Tiered loyalty programs drive greater mobile wallet
usage: Only half of service providers offer tiered loyalty
programs. Of these, 79% said that the prospect of earning higher
tier points incentivizes customers to use their services more.
Consumers however, still lack awareness of such programs, with 19%
saying they didn’t know if their loyalty program was tiered.
- Consumers like to accumulate loyalty points to purchase
products and services or to receive cash discounts; cash backs on
purchases or vouchers for free purchases: While overall,
consumers are receiving the rewards that they like, gaps still
exist. Although there is a marked preference for cash back (41%),
this type of reward was not available to one-third of respondents.
The same holds true for vouchers, where 30% wanted to receive such
rewards but only 22% were offered them.
- MFS-linked loyalty programs represent a highly untapped
market: 56% of respondents were not members of an
MFS-linked loyalty program. One-third of these were not offered any
such program. Of unbanked respondents, who stand to benefit most
from MFS-linked loyalty programs, only 22% said they were
registered to one.
“The mobile financial industry is looking for ways
to accelerate usage and drive growth, while delivering a consistent
and simplified experience,” said Patrick McGrory, division
president for Amdocs’ Emerging Offerings. “Amdocs Loyalty
Management System, which we launched today, is a simple and
scalable solution that enables service providers to integrate
multiple loyalty programs into one wallet. It simplifies the
consumer experience, while helping service providers retain and
engage existing customers, attract new ones and increase mobile
wallet usage.”
Amdocs today also launched the MFS Loyalty
Management System, which allows MFS providers to integrate all
loyalty programs and cards from various retailers, merchants,
billers and so on into one mobile wallet. The loyalty management
system is fully integrated into Amdocs MFS solution which holds and
manages subscriber loyalty account information. It is also
integrated with Amdocs MFS card management system, which can link
virtual or physical loyalty cards to a loyalty program.
Supporting Resources
- Access the full research findings in the whitepaper “The Impact
of Loyalty on Mobile Financial Services and Payments”
- Learn more about Amdocs Mobile Financial Services
solutions
- Keep up with Amdocs news by visiting the company’s website
- Subscribe to Amdocs’ RSS Feed and follow us on Twitter,
Facebook, Google+, LinkedIn and YouTube
About Amdocs
Amdocs is the market leader in customer
experience software solutions and services for the world’s largest
communications, entertainment and media service providers. For more
than 30 years, Amdocs solutions, which include BSS, OSS,
network control, optimization and network functions virtualization,
coupled with professional and managed services, have accelerated
business value for its customers by simplifying business
complexity, reducing costs and delivering a world-class customer
experience.
The Amdocs portfolio enables service
providers to capture the world of digital immediacy by operating
across digital dimensions to engage customers with personalized,
omni-channel experiences; creating a diversified business to
capture new revenue streams; becoming data empowered to make
business and operational decisions based on insight-based and
predictive analytics; and achieving service agility to accelerate
the fast rollout of new technologies and hybrid network
services.
Amdocs and its 25,000 employees serve
customers in over 85 countries. Listed on the NASDAQ Global Select
Market, Amdocs had revenue of $3.7 billion in
fiscal 2016.
Amdocs: Embrace Challenge, Experience Success.
For more information, visit Amdocs at
www.amdocs.com.
Amdocs’ Forward-Looking
Statement
This press release includes information that
constitutes forward-looking statements made pursuant to the safe
harbor provision of the Private Securities Litigation Reform Act of
1995, including statements about Amdocs’ growth and business
results in future quarters. Although we believe the expectations
reflected in such forward-looking statements are based upon
reasonable assumptions, we can give no assurance that our
expectations will be obtained or that any deviations will not be
material. Such statements involve risks and uncertainties that may
cause future results to differ from those anticipated. These risks
include, but are not limited to, the effects of general economic
conditions, Amdocs’ ability to grow in the business markets that it
serves, Amdocs’ ability to successfully integrate acquired
businesses, adverse effects of market competition, rapid
technological shifts that may render the Company's products and
services obsolete, potential loss of a major customer, our ability
to develop long-term relationships with our customers, and risks
associated with operating businesses in the international market.
Amdocs may elect to update these forward-looking statements at some
point in the future; however, the Company specifically disclaims
any obligation to do so. These and other risks are discussed at
greater length in the Company's filings with the Securities and
Exchange Commission, including in our Annual Report on Form 20-F
for the fiscal year ended September 30, 2016 filed on December 12,
2016.
Media Contact:
Austin Weedfall
Hotwire PR for Amdocs
Tel: +1 646-790-4737
E-Mail: austin.weedfall@hotwirepr.com
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