The influence of mobile technology on retail in this century has been truly astounding. By 2003, 95 million people around the globe made a payment via their mobile device. By 2015, there were 500 million users making 50 billion transactions for a total volume of 610 billion USD. With mobile wallet growth on the rise, could it be the next subset of mobile commerce to reap the benefits of a mobile hungry populace? Over the last five years, m-commerce has enjoyed a 30% compound annual growth rate (CAGR) that is showing little sign of slowing down. If brick and mortar retail is still king, what will it take to bring mobile wallet adoption out of the hands of early adopters and into the hearts and minds of shoppers worldwide?
Almost half (40%) of shoppers said delivery is the single most decisive factor in the shopping experience. Yet, delivery issues could cost retailers $333 million this holiday season, not including an additional $1.5 billion in potential lost revenue from shoppers who won’t return after a poor experience.
Brands constantly look for new channels to engage with consumers and mobile wallets are often underutilized—yet promising—tools that can do just that. People use physical wallets to hold their rewards cards, gift cards and more—and expect the same capabilities from their mobile wallets.
But until a mobile wallet can provide the same functionality as a physical one, there’s no reason for consumers to leave their leather billfold at home. Mobile wallets that don’t bridge this gap are less likely to be used to their full potential because they don’t provide consumers with added value that eliminates the need for a physical wallet—causing brands to miss out on engagement opportunities.
Customer loyalty is no longer the powerhouse that it once was. In the digital age, consumers expect top-notch customer service, and the ability to buy what they want, anywhere, and anytime, through various channels, offline and online. With brick-and-mortar stores seeing fewer and fewer purchases while online sales continue to enjoy meteoric rises, retailers must face the music, and it’s a whole new dance card.
The human touch is important, and many business leaders equate great customer service with a customer’s ability to reach an actual person quickly. But company leaders who aspire to deliver excellent customer support should be aware that today’s customers increasingly demand the tools and resources to resolve problems themselves.
Keeping customers engaged with your rewards program can be tough. In order to keep them interested, your customers need to be constantly reminded of your program’s benefits. Otherwise, they might forget why they joined the first place, potentially costing you business and having a negative effect on your bottom line.
Around 80% of consumers use mobile phones inside a physical store to check product reviews, according to a recent study by website design firm Outerbox, underlining the advent of the omnichannel shopping era.
Combine this with the growing spending power of the notoriously choosy Millennial generation and it is easy to see why some commentators have branded the concept of customer loyalty as dead.
It is clear from the study that consumers want speed, convenience and timely communication for a better BOPIS experience. Currently, a small portion of total purchases are completed through click and collect, but it is growing in use, with 49% of Americans trying it for the first time in 2016.
Retailers can benefit from creating a winning in-store experience — 59% of buyers expect to purchase additional items at least some of the time. Retailers should explore if they can provide incentives to convert the 41% of customers who are not likely to purchase additional items.
It is interesting to note that 77% of shoppers did not want to be dragged all the way to the back of the store to pick up their items. Businesses should balance their financial motives to upsell patrons entering their stores to pick up their items with the speed and convenience that they expect.
Retailers should focus on creating a winning in-store experience by enabling what matters most to click and collect consumers: speed, convenience and timely communication.
In sector after sector, companies are asking how they can adapt to the digital world—how they can build more digital capabilities, create more digital offerings, and even become “digital first” organizations.
But for institutions that have served customers for decades in person and over the phone, digital too often falls short. After the debut of a new app, for example, a jump in sales may not be as big as expected, while hoped-for operational efficiencies—such as a reduction in expensive call-center and in-store customer-support requests—hardly materialize.
Executives naturally wonder why: aren’t customers demanding digital? Without question, they are. But not to the exclusion of other channels, which remain critically important.
According to the study, 60% of retailers consider Amazon at least somewhat of a competitor. These companies also continue to grapple with free shipping, email communications and better access to customer data to mimic what Amazon does best: provide highly personalized and convenient experiences for customers.
Specifically, 63% of retailers believe free shipping for loyalty program members is one of Amazon’s most impactful consumer-facing technology initiatives. Yet, only 10% of retailers have significantly increased investment in technology to better compete with Amazon. Meanwhile, 29% of retailers haven’t even changed their data collection and analysis processes as a result of Amazon’s influence.
Millennials, born 1981-1997, now number greater than 75 million and have become the largest living population, according to recent estimates from the U.S. Census Bureau. Needless to say, they are a very important retail segment.
Retailers need to pay special attention to this group and even consider new marketing tactics as Millennials differ quite a bit from prior generations in terms of making purchase decisions and developing brand loyalties.
Research from Vantiv gives some insight into what millennials look for in a retail experience. Here are a few tips to start building relationships with and selling to this important demographic.
Calgary, AB—May 17, 2017—POPcodes, a startup focused on improving consumer, merchant and acquirer experiences, has been selected to compete against some of Canada’s most innovative FinTech, PayTech, AI, and RegTech startups. The FinTech Cup, a collaboration between Payments Canada, 500 Startups, The Digital Finance Institute and sponsored by Paysafe and CIBC, is intended to foster innovation and talent in the payments ecosystem and drive awareness and funding for the finalists.
POPcodes, a startup focused on improving consumer, merchant and acquirer experiences, has been invited to compete in the Payments Pitch-Off and E-Pay Innovation Award at this year’s Transact 17. The winner will earn $25,000 in prize money and the 2017 E-Pay Innovation Award.
POPcodes has been a member of the ETA almost since its inception. As such, POPcodes is thrilled to have been selected to be a part of the Payments Next Zone. "We could not be more pleased to have been selected to stand up next to such industry leading startups as Womply or Adyen. Though we may be newer to the industry, we believe our product will complement the offerings of companies such as these, and we can work together to change the face of retail."
-Gregg Aamoth, POPcodes CEO
POPcodes is pleased to have been featured in an episode of This Week in Location Based Marketing. In their weekly podcast Asif R. Khan and Aubriana Lopez discuss POPcodes Proof @ POS and how it impacts both the payments and the SMB retail sectors.
Have a listen here: https://www.thelbma.com/podcasts/331/this-week-in-location-based-marketing-episode-312/
"Consumers are increasingly turning to their mobile devices to answer product-related questions, like price and availability, while they shop," said Jason Purcell, CEO and co-founder of Salsify. "This year's research again demonstrates just how critical it is for every brand and retailer to have a systematized approach to maintain robust and relevant digital content to retain shopper attention and win sales."
That the retail world has changed very quickly and fundamentally in the last several years is no longer up for debate. The digital age has spawned customers that are incredibly knowledgeable about — and always connect to — commerce. The number of potential touchpoints a retailer has with consumers has increased exponentially over the past decade — and the dawn of the era of the connected device is set to expand it even further.
The good news for payments and commerce players is that this evolution has been an excellent catalyst for innovation and improvement — particularly in the pursuit of a better customer experience. The more challenging news is that delivering on that potential is a lot of work and typically requires a series of separate but connected efforts to produce one unified experience.
“Traditional brick-and-mortar merchants are realizing they need both a strong digital and social presence,” POPcodes CEO Gregg Aamoth told PYMNTS in a recent conversation.
CHARLOTTE, N.C. - March 28, 2017 - PRLog -- POPcodes, a startup focused on improving consumer, merchant and acquirer experience, participated in TestTrack 2017 at the Northeast Acquirers Association conference in Charlotte on March 20th, 2017.