Shopping and payments: Evolution-Revolution

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SHOPPING AND PAYMENTS: EVOLUTION-REVOLUTION? WEBER SHANDWICK & PRIME 19 th of September 2014 Future Forum 2014 Gent, Belgium Communicating about payments, shopping, loyalty and new innovative products ?

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We are becoming more digitalized, however the basics of loyalty are the same – such as convenient location, product assortment, best prices and customer service is still key. There are however different needs around the world when it comes to retail, in Europe (click and collect) compared to the US (buy online and have product shipped home). Globally convenient scheduling is more important than speed.

Transcript of Shopping and payments: Evolution-Revolution

  • 1. SHOPPING AND PAYMENTS:EVOLUTION-REVOLUTION?Communicating about payments, shopping,loyalty and new innovative products ?WEBER SHANDWICK & PRIME 19th of September 2014Future Forum 2014 Gent, Belgium

2. BASICS OF LOYALTYWe are becoming more digitalized, however thebasics of loyalty are the same such asconvenient location, product assortment, bestprices and customer service is still key.There are however different needs around theworld when it comes to retail, in Europe (clickand collect) compared to the US (buy online andhave product shipped home). Globallyconvenient scheduling is more important thanspeed. 3. FUTURE OF ONLINE RETAILThe online retail sales inEurope are forecasted togrow with over 12% thenext five years.European online retailsales are expected toreach 233.9 billion by2018.About half of the onlinesales are forecasted to bedone from mobile devicesin 2018. 4. DIGITAL AND PHYSICAL SPACESOnline and physical stores are merging into one especially in mature markets.More and more want the convenience of onlinetransferred to the store. Brands need toincorporate virtual stores into the physicalsettings, access top-list, reviews from previousbuyers or make it possible to check availabilityof products across channels.In-store tech wouldencourage a thirdof UK customersaged 14-34 tospend moreWebbrooming isbecoming morecommon thanshowrooming.Researching aproduct onlinebefore trying it onin-store. 5. BRIDGING THE GAP WITH MOBILE47% of UKcustomers are likelyto use e-wallets50% of the globalshoppers wants toaccess servicesvia mobile devices Mobile the way of bridging the gap between offline and online. It allows the retailer to follow theconsumer from online to the physical store. Increased focus on Omni channel within retail, commerce services need to adapt to that. Make moreof the store as an experience center and combat online fatigue30% of the UKcustomers wouldlike to receivemessages fromretailers on theirphone when instore 6. Americans aretwice as likely tocarry a phone thancash..CONSUMER BEHAVIORS6 billion peopleworldwide haveaccess to mobilephonesthose aged 18-34 are four timesmore likely to dothis. Mobile payments are becoming more andmore popular, between 2012 and 2013mobile payments doubled to 1 billion dollars. Over 4 million iPhone 6 pre-ordersduring first 24 hours compared to600.000 pre-orders for iPhone 4. Case: PayPal partnering with UBER 7. Americans are twice as likely to carry a phone than cash ..or a wallet 8. PERSONALIZATION About 50% of the global shoppers are willingto provide retailers their personal data, aslong as it results in personalized offerings.Merchant centricBig DataGeneric discountsConsumer centricYour dataPersonal rewardsand offers 9. Cardholder empowerment to let big data becomeyour dataWrapp partnering with Mastercard launching theirnew app together with a physical card.Wrapp puts you in charge of your own data and letsbrand compete for your next purchase. No moreunwanted spam and advertising from brands youdo not like based on your personalized shoppingdashboard.An app with acard, not a cardwith an appPERSONALIZATION|CUSTOMER PERSPECTIVE 10. PERSONALIZATION|MERCHANT PERSPECTIVEIzettle and Square.Mobile point of sale tools for small businessesthat allows them to accept credit cards.Provides the merchants data on the top-sellingproducts and returning customers.The evolution to mobile payments for maturecard-markets. 11. CONSUMER CENTRIC EMPOWEREMENT Consumers will control their relationship withthe brand in a larger extent. They will decideon what data that is shared with whatbrands. Focus on simplicity, retailers have to createan effortless shopping experience andremove unnecessary friction when shoppingand paying. Its about making more of the store andcombatting online fatigue 12. BEACONS, PERSONALIZED & SIMPLIFIED Beacons using Bluetooth low energy to send signals to smartphones inorder to simplify the payment process. It also allows a more precisetargeting of customers, based on their geographical location. Case: Regent Street in London that have introduced new smartphoneapplication that uses location-aware beacons that are being installed in thestores. 13. SO WHAT ARE THE IMPLICATIONSFOR COMMUNICATING ABOUTINNOVATION & PAYMENTS? 14. INNOVATIONS WITHIN PAYMENTS Different consumer behaviors on different markets. The ideal formula ? Cash,cards, checks, mobile or contactless ? Security issues when paying. Curation and data protection : Use purchase data to personalize offers. Who will bein control of the data? How to track customer data when they use several differentphones and tablets? 15. No one solution fits all; pending on maturity of themarket, cultural sensitivities Northern Europe cards. Bangladesh cash and mobile. US credit cardsand checks.on 16. One payment category brand voice beneficialto avoid confusion among consumer and smallretailers, especially when multiple (competing)payment innovations are launched at the sametime Stichting Bevorderen Efficient Betalen inthe Netherlands ? Fruitful payment category ecosystem noegosystem (source : UL TransactionSecurity) Authentic, peer to peer communications mostrelevant Focussed on consumer centric empowerementand data protection 17. Food for thoughtHow to use thepayment innovationfor the good of societyHow to engage the leftbehindsand vulnerable groupsin the (e)volution &revolution discussion