The Benefits of Apple Passbook for Brands

Passbook offers brands a significant opportunity to drive engagement with customers and increase store foot traffic through one convenient app.

Passbook is an app native to Apple devices, pre-installed on all operating systems that run iOS 6 or later. The essential premise is one place to store coupons, event tickets, loyalty cards and the like, but more than just being a digital wallet, it also represents huge marketing potential for brands.

The fact that Passbook is a default app means a target audience already exist that are accustomed to using it. In the US Passbook is already the 4th most popular mobile commerce app and a fifth of all iPhone users already use it to download coupons. Furthermore, with over 300 million iPhones around the world and all future devices set to have Passbook installed, the wide range of users that brands can reach is vast.

The convenience of having all a wallet’s non-payment aspects in one app is beneficial to both brand and customer. For example, the easier access to both coupons and loyalty cards allows brands to offer their customers a seamless interchange between the two whilst increasing sales and providing better customer service.

Location-based notifications enhance the dynamic features of a Passbook pass allowing brands to send updated information to their customer’s phone via push notifications, which highlights the potential to refine marketing strategies with more personalised, relevant offers. Apple’s iBeacon technology has already paved the way for geolocation to play a key role in brand to customer interaction.

Incorporating Passbook passes into a brand’s existing mobile marketing strategy has been shown to boost sales and increase coupon conversion rates, with 64% higher conversions compared to regular mobile web coupons. It also provides a totally different platform to a brand’s app, as consumers don’t want to fill their phones with apps for every different shop or restaurant, and require a simpler, more expedient way of utilising their smartphone whilst in-store.

Crucially for smaller brands, Passbook doesn’t need an app to work alongside it, as passes can be added straight to it via email or SMS. This opens up the barriers to entry, enabling brands with smaller resources to have a cost-effective way to offer their customers mobile content and drive up sales. However, there are also Passbook-enabled apps which prompt you to add a pass straight to Passbook allowing both to work in conjunction together.

Apple’s latest updates to iOS7 have made Passbook even more brand and user-friendly with features such as a barcode scanner allowing passes to be easily added on-the-go by scanning a QR and a share icon on the pass. These features make Passbook more accessible, ultimately helping to increase brand loyalty by allowing maximum exposure of a pass.

The Growth and Rise of Mobile Wallets – Apple’s Passbook and Google Wallet

The current mobile wallet evolution is being fronted by Apple’s Passbook and Google Wallet with the ultimate goal of replacing physical wallets in favour of the smartphone. Both versions of mobile wallet offer roughly the same service, with a few variations.

Passbook and Google Wallet’s main features are storing passes, i.e. coupons, loyalty cards, boarding passes, cinema tickets, basically anything that used to be a piece of paper in your wallet, can now be kept safely in your smartphone. The principal concept is having one place on your phone to store everything you need.

Apple’s Passbook, launched in September 2012, is seen as the pioneer of using digital wallets to store loyalty cards and coupons, of which Starbuck’s was one its first brands. Although the app came out after Google’s, it’s path was clearly defined as a place to store passes rather than offer any form of payment.

Passbook is a native app, pre-installed in all iPhones, meaning that it only runs on Apple products and only those that run on iOS 6 system or later. One key feature of Passbook is that it enables iBeacon technology to offer geo-trigger push-notifications to iPhone users, which for example enables retailers to offer relevant, updated offers to customers whilst they are in their store. The iBeacon feature is something which Google are still in the process of developing.

The newest feature that Apple has added to iOS 7 system is a QR code scanner, used via the phone’s camera which allows the user to add mobile wallet content on-the-go. These passes can either be used as a digital pass or printed out to be used in-store.

Google Wallet’s journey to its current stage has been slightly different. Initially Google Wallet started as an online payment, Google’s answer to PayPal if you like, but the concept never took off and in September 2013 they moved to include the non-payment side, i.e. coupons, loyalty points, boarding passes etc. Google Wallet app that can run on any Android device with Android 2.3 or later and can even run on iPhones iOS 6.

In May 2013 Google rekindled their ambition to use Google Wallet as a payment alternative but this time by integrating it with Gmail enabling users to send money to anyone over the age of eighteen who has a Gmail account. Further in keeping with this idea Google have also introduced a quicker way to make online payments via the ‘Buy with Google’ button, allowing anyone with a Google Wallet account to make purchases on mobile apps and sites in only two clicks

As an extension of the app Google also now offer a physical debit card to go along with your Google Wallet app, which enables you to use its NFC (Near Filed Communication) technology to make one-tap payments.

Nevertheless, the whole Google Wallet service is still only available in the US, with no clear indication of when it will arrive in Europe. In contrast, Passbook has been available in Europe since its launch. Nevertheless, with the Android operating system being used on over 50% of current smartphone users’ phones, Google offer marketers access to a broader audience than Apple can. Therefore expect to see more retailers and brands incorporate Google’s mobile wallet technology in to their marketing plans in order to further create engagement and loyalty in their customer base, and ultimately increase sales.

There’s a clear distinction then that Google aim to incorporate their digital wallet as part of their wider plans of facilitating online payments for their users, whilst Apple’s Passbook is focused more on the non-payment side, solely being a place to store all the necessities of your wallet without making payments.

However with the launch of Apple Pay in October 2014, the in-store experience changed for retailers and consumers. Not only loyalty card are stored within mobile phones, the payment is made through NFC (Near Field Communication), a technology built-in iPhones. This means that the consumer only uses his smartphone to connect all services on the same mobile interaction. Adding the fact that Apple has already several major partnerships with major credit card services such as Visa, American Express, banks and retailers, this translates in a huge advantage for Apple.

The benefits of Apple Passbook for brands

Passbook offers brands a significant opportunity to drive engagement with customers and increase store foot traffic through one convenient app.

Passbook is an app native to Apple devices, pre-installed on all operating systems that run iOS6 or later. The essential premise is one place to store coupons, event tickets, loyalty cards and the like, but more than just being a digital wallet, it also represents huge marketing potential for brands.

The fact that Passbook is a default app means a target audience already exist that are accustomed to using it. As an example, in the US Passbook is already the 4th most popular mobile commerce app and a fifth of all iPhone users already use it to download coupons. Furthermore, with over 300 million iPhones around the world and all future devices set to have Passbook installed, the wide range of users that brands can reach is vast.

The convenience of having all a wallet’s non-payment aspects in one app is beneficial to both brand and customer. For example, the easier access to both coupons and loyalty cards allows brands to offer their customers a seamless interchange between the two whilst increasing sales and providing better customer service.

Location-based notifications enhance the dynamic features of a Passbook pass allowing brands to send updated information to their customer’s phone via push notifications, which highlights the potential to refine marketing strategies with more personalised, relevant offers. Apple’s iBeacon technology has already paved the way for geolocation to play a key role in brand to customer interaction.

Incorporating Passbook passes into a brand’s existing mobile marketing strategy has been shown to boost sales and increase coupon conversion rates, with 64% higher conversions compared to regular mobile web coupons. It also provides a totally different platform to a brand’s app, as consumers don’t want to fill their phones with apps for every different shop or restaurant, and require a simpler, more expedient way of utilising their smartphone whilst in-store.

Crucially for smaller brands, Passbook doesn’t need an app to work alongside it, as passes can be added straight to it via email, SMS or distribution campaigns in social networks. This opens up the barriers to entry, enabling brands with smaller resources to have a cost-effective way to offer their customers mobile content and drive up sales.

Passworks platform enable brands to create a pass, manage and distribute a marketing campaign that may take the form of digital coupons, membership or loyalty cards, and events or travel tickets, via Apple Passbook.

The rise of mobile wallet marketing opportunity

In recent years, we have seen the rise of mobile payments and how they been changing the way customers and businesses interact. From PayPal, Google Wallet, Square, Isis and passing on to Visa and MasterCard, everyone has been focusing on driving mobile payments, improving and transforming the way people shop and pay.

Only more recently, have the mobile wallet non-payment features started to emerge. Primarily with the launch of Apple Passbook, and later with the new updated version of Google Wallet, mobile wallets have been redesigned to meet the needs of brands in delivering compelling content to consumers on their smartphones via the use of dynamic passes (such as digital coupons, loyalty cards, boarding passes, event tickets and others offers), push notifications and real time location based messages. Taking advantage of these features has become fundamental in the industry in allowing brands and retailers to communicate more effectively, while giving consumers an easier way to organize their items in one place.

This is a huge, and very real opportunity for brands and retailers to communicate and further build relationships with their customers. These new functionalities allows to easily send personalized offers, distribute passes which drive store traffic and increase both conversion rates and consumer loyalty and enabling a very cost-effective location-based marketing campaign.

At the end, brands and retailers can start exploring the emergence of mobile and social platforms as an opportunity to increase share of mind and share of wallet to create an interconnected and seamless experience between mobile and the shop floor.

Consumers have already made it clear they want a mobile wallet solution that gives them a seamless experience while helping to better organize all their shopping-related information, thus creating a better, more convenient overall shopping experience.

No longer do consumers need to carry all their paper coupons or plastic cards when shopping, traveling or going to an event. Instead, they can place their coupons, offers and cards in the mobile wallet and let the technology work for them. They can also be reminded of offers when close to a retail store or when a certain offer is about to end with a push notification that will appear on the screen of their smartphone.

Mobile is the ultimate and effective form of custom media because it is personalized and contextualized to the consumer. This is why it is important for marketers to create personalized and contextualized, relevant content based on their client profile. And if used properly, Google Wallet, Apple Passbook or other mobile wallets are effective solutions for brands to leverage customer acquisition, engage with consumers and drive traffic to their store. Nevertheless, these mobile wallets are not brand or retailers friendly in a way that is easy for the marketers to create offers or vouchers, design campaign and distribute them their target consumers.

Passworks is a new best in class solution for brands and retailers, that enables effective customer acquisition and strong engagement that drives store traffic. It’s an integrated solution for mobile marketing campaigns management using Software-as-a-Service (SaaS) or an Application Program Interface (API) to create engagement mobile wallet campaigns.

With Passworks’ marketers can design their dynamic passes (digital coupons, membership cards, loyalty cards, event tickets, travel tickets), create the respective marketing campaign, choose a profile target, define location-based notifications, and distribute them directly to customers´ phones of all major mobile platforms via Apple Passbook, Google Wallet, Windows Phone Wallet and other their parties Apps through integration with social networks among other channels.