Discover some effective ways that your payment data can not only be put to good use in your business, but also delight your customers as well.
The way we shop is rapidly evolving. Today, we expect to move seamlessly from a retailer’s store, to its app, to its website, with a consistent experience across every touch point. As a result, retailers are consolidating their sales channels in order to support seamless shopper journeys.
The key to this is the centralization of your payment data. This makes it easy to build a 360 degree view of your shoppers across all sales channels, and build a deeper understanding of their needs. Furthermore, with all data collected in one system, it becomes possible to track evolving trends, and optimise to ensure the best possible result for every transaction.
Here are three of the most important ways that payment data can be put to good use in your business.
- Blur the lines between your sales channels
Once your physical store, app and website are running from the same system, it is easy to support cross-channel shopper journeys like:
– Buy online, collect in store (or click and collect) –Not only is this convenient, but it produces the positive side effect that customers (32 percent according to one survey1) buy additional items while in-store. One global apparel brand saw an increase in sales close to 5 percent by supporting click and collect.
– Cross-channel returns – Allowing your shoppers to return an online purchase in store addresses a significant pain point for customers, and removes another barrier to purchase. It also brings online shoppers back in-store, providing another opportunity for further sales.
– Endless aisles – Losing shoppers because their preferred size or colour is out of stock is a huge drain on revenue. The endless aisle addresses this issue by giving shoppers access to the entire inventory via an in-store tablet. Overall, businesses have found endless aisles to increase sales by up to 14 percent.
- Personalise your customer service
The ability to recognise your shoppers across sales channels makes it easy to provide a hyper-personalised service. This is particularly valuable for high-end luxury retail, where experience accounts for so much. For example, a seasoned online shopper might walk into a store for the first time, and be recognised at the checkout by their credit card. This could then trigger an alert to the cashier to offer a loyalty reward, or offer to ship the items free of charge.
By using technology such as tokenization, it is also possible to securely capture shoppers’ payment data during an initial transaction, and replace it with a token, that can be used to charge for subsequent transactions. This means repeat shoppers can pay with a single click (or a tap in the case of mobile). Delivery details can also be saved, so an item can be purchased and arranged for delivery in a matter of seconds.
- Fight fraud while increasing card approval rates
Fraud is a costly threat at both the point of sale and online. But with the widespread use of EMV making card present transactions less vulnerable, fraudsters are increasingly moving online. Fortunately, with in-depth payment data, retailers can identify and track known fraudsters, even as they move between cards, IP addresses and emails. As a result, retailers can hone in and block fraud, while leaving legitimate shoppers unhindered by additional security checks.
Another important use of payment data is at the ‘second checkout conversion’. This is what happens when your shopper hits ‘pay’ and the card scheme responds with either an approval or a decline. There are many factors that influence the result, such as insufficient funds, or suspected fraud, but there remains a 5 percent global average that is declined for no other reason than a glitch in the system. The good news is that, with visibility into the reason behind these declines it is possible to dynamically adjust the format of each request, based on specific issuing bank preferences, to maximise the chance of an approval.
With these more sophisticated means and awareness of your payments data, you will be able to increase approval rates – and in turn boost your overall revenue, while improving customer relationships.
- Drapers Multichannel Report