The instant popularity of Pokémon Go has taught credit unions important lessons about engaging consumers, rewarding them and getting them in branches.
Much like Uber taught the payments industry the best way to get people to spend through their smartphones is to make the process invisible, the smartphone game Pokémon Go keeps players coming back to local landmarks without nudging them to a specific place or even promising them a specific reward.
"Neither the technologies nor commerce took center stage. Instead developers focused on creating an experience that would bridge the physical and online world in order to grip the imagination of its participants," said Michelle Evans, digital consumer manager at Euromonitor International.
The augmented-reality mobile game, which launched in July in the U.S., Australia and New Zealand, is like a real-world treasure hunt on a smartphone — a treasure hunt for Pokémon. The GPS and camera provide a map and a window into a fantasy world in which real-world monuments become Pokéstops, or locations where Pokémon (and Pokémon-catching supplies) are likely to appear if users visit them in real life.
'They Need to Embrace It'
Already the app is driving virtual Pokémon hunters of all ages out into the streets — and right to the doors of credit union branches that didn't know they were secretly hiding these beloved mythical creatures.
"We immediately had conversations with branch staff and back office staff who are playing the game to see what is available, what options are there," said Melina Young, director of brand marketing at Seattle-based Verity CU.
A number of financial institutions are trying to figure out ways to capitalize on the Pokémon craze. Some are still assessing the mobile app to see if it is just a passing trend, and $489 million Verity has said if the game does not turn out to be a passing fad, they intend to "up the ante" and promote outreach to those playing the game.
At Moline, Ill.-based vibrant CU, the marketing team arranged to have "lures" placed in Pokéstops that were near their main branch. Lures attract Pokémon characters, which in turn attract players.
The $572 million institution had recently launched an outreach program with the community and their 38,000 members through a Volkswagen bus that had been converted into an ice-cream truck wrapped in Vibrant's logos and banners.
Liz Rose, marketing manager at the CU, said Vibrant has two Pokéstops close to their branch and "we decided to use that and leverage that to get people to come out and play and get some free ice cream while they were there."
The branches have used lures at nearby Pokéstops but Rose says the best results thus far have come from scheduled times promoted through Facebook with the ice cream truck accompanying.
Verity CU opened two new branches in 2015 located in high foot-traffic areas that happened to have Pokéstops and gyms – points of interest in the game – in the vicinity. Young said they have started setting lures for Pokémon to come into the branch, and though she noted that lures can drive traffic, Pokémon only show up in a 10-15 ft. radius of the lure.
The ability for businesses to label themselves as a Pokéstop or gym is currently not available in the application. Young said "word on the internet" is that the ability to sponsor locations and designate Pokéstops or gyms will be coming in the "semi-soon future." This function may drive the marriage of Pokémon and marketing to a new level.
Niantic Labs, the developer of the application and a former internal Google start-up, has made available a process for individuals to appeal for a business to be turned into a stop or gym. They also noted only businesses are allowed to request this addition, not residential households; another positive note for those worried the application would eventually lose its reliance on users walking around and exploring.
Vibrant's CU's Rose is also looking forward to additional marketing tools through the app.
"We are definitely going to embrace it and try to utilize to the best of our ability," she said, "CUs are sometimes afraid of change and fun things like that – I think they need to embrace it."
Of course, luring Pokémon players into the branch was one thing – turning them into members is an altogether different challenge. This could be achieved through catching Pokémon in the branch or using the gym mechanic to the benefit of bringing in more people and incentivize products through achievements in the application.
"If we wanted to have a sort of separate promotion we could do something as simple as if you caught a Pokémon in our branch and you open an account right now, we will give some sort of money incentive," Young told Credit Union Journal.
New Ways to Drive Branch Traffic
There is a consensus among CUs participating that, if nothing else, engaging with the growing Pokémon crowd can promote awareness of a credit union's services and locations. It also creates an "entry point" in the lives of millennials, who rank among the game's most enthusiastic players.
Pokémon Go is actually a relaunch of an earlier smartphone game called Ingress, which experimented with the idea that retailers could pay for sponsorships within the app that would drive players to visit a specific store.
Credit unions long struggled to use mobile apps to drive traffic. Many are experimenting with geolocation and Bluetooth beacons, which can sense when a customer is near and provide targeted offers and other rewards. Ultimately these efforts can include payments as well, but few can claim to have motivated consumers to visit their branches the same way Pokémon Go — an app reportedly on more phones than the dating app Tinder — has energized its audience in a few short days.
The Next Level?
Although in terms of mobile payment apps more broadly, getting to the next level would require some incentive for the customer to stay engaged and keep the user experience fresh.
Incidentally, "Pokémon Go" has been raking in $1.6 million daily just from iOS users in the U.S., according to data from SensorTower, a mobile app analytics platform. Compare that to the 5% of mobile users worldwide who make in-app purchases. Their spending comes to about $9.60 per app, per month, according to mobile attribution and marketing analytics platform AppsFlyer.
Brand loyalty is a significant factor too, and it's another kind of emotional connection. The game hits a very large user demographic. Its youngest generation is helping spread the game virally (parents are playing too, with or without them). There's also the 20-to-30-year-old group that grew up with Pokémon and now have the buying power to enjoy it on a different platform, said Jordan Edelson, founder and CEO of Appetizer Mobile.
People are more prone to make in-app purchases in Pokémon Go because they trust the brand, grew up with it, believe in it and want to interact with it using a different medium than they did in the past, he said. And now, they can be less discretionary, if they like, with their income.
"These are mobile payments that people are willing to spend and it doesn't matter what method it is, as long as they can get that reward or that incentive and buy into brands that are familiar and they trust," Edelson said.
But it's the gaming aspect of it that keeps users engaging with the app for longer periods, compared with an app a customer might download to send a couple of payments over, but not really come back to otherwise.
"It's another page in the chapter of invisible payments," said Deborah Baxley, partner at PayGility Advisors, who says Pokémon Go's business model is "similar to in-app payments like with Uber, so that gamers can seamlessly purchase powers, toys and accessories."
