Wednesday, November 25, 2020 / 06:00PM / Visa Consulting & Analytics
(VCA) / Header Image Credit: Visa Consulting & Analytics (VCA)
If small businesses can provide easy access to information, frictionless payments, a simple returns policy, and personalized shopping options, they are likely to have an immediate advantage in the marketplace. This is according to Visa Consulting & Analytics (VCA) report titled Accelerating the shift to eCommerce, where 81% of customers indicated they are willing to pay more for a good customer experience.1
"Small and Medium-sized Businesses
(SMBs) that leverage ecommerce solutions; which provide excellent online shopping
experience for consumers; have the opportunity to benefit from high spend
periods like Black Friday and the coming festive season compared to businesses
who have not mastered the importance of holistic back-end design of the
customer journey" says Kemi Okusanya, Vice President, Visa West Africa.
The move to increased online shopping comes
on the back of most retailers driving their customers online due to different lockdown
restrictions that affected in store foot traffic. Visa's Covid19 Impact Tracker,
released earlier this year showed that up to 68% of consumers were going to
grocery stores less often. As the retail sector looks to driving recovery, the
approach to periods like Black Friday has also evolved and further necessitated
safer, better online payment experiences.
"The impact of a bad payment experience can
be devastating. When a shopper abandons an online shopping cart due to checkout
friction, the data shows that 67% end up leaving for a competitor or never
complete the purchase anywhere, and 59% say they are less likely to shop with
that same retailer again2,"
adds Okusanya.
It's encouraging that most small businesses
(60%), according to the VCA report, have taken bold steps to prepare for the
seasonal sales activity that kicks-off with Black Friday. The preparation includes
changing their infrastructure and digitizing their business.
"The VCA report highlights how the payment
experience is a critical touchpoint - a part of the customer journey, which
requires special attention. Each time a potential customer reaches the checkout
page, they have a moment to reflect on whether the effort needed to make the payment
is equal to the value they get from their purchase. To win prospective and repeat customers, SMBs
need to have a digital presence during the discovery and evaluation stages of
the customer shopping journey", concludes Okusanya.
Digital payments provide a convenient and
secure way to pay for customers. For businesses, they reduce the friction
arising from handling money, limit customer queuing, grow their customer base
as a result of enhanced experience and eventually improve sales and
profitability. As online shopping becomes the norm for consumers and businesses
continue on the road to economic recovery, digital payment and in particular
frictionless e-commerce experiences, will become a competitive advantage for
small businesses.
Footnotes
1. https://preferredpayments.com/importance-providing-great-easy-online-customer-experience/
2. 451 research Three key
payments observations from National Retail Federation 2020.
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