Omnicommerce: The Member Data Dilemma
Originally posted on Vantivâs Blog.
Guest post written by Lorena Harris, VP of Corporate Marketing, Vantiv. In the third part of this three-part series, Lorena discusses how providing a consistent customer experience across channels is a critical component of omnicommerce.
Lorena is presenting the "Mobile Payments and the Omniconsumer of the Future" featured session at NAFCU's 2014 Technology and Security Conference, February 11â13. Save $150 with code HOLIDAY; expires January 10. Register today »
As merchants develop their omnicommerce capabilities, they will be interacting with customers in more ways across more channels. That means that they will have access to a much wider range of information about consumers to use in their marketing efforts. But with power comes responsibilityâ¦
Merchants today know how to run discount and promotion programs, but more data means more opportunity to enhance those programs. Such incentives are already an effective way to modify consumer behavior: In recent Vantiv/Mercator research, more than four out of ten respondents said that they would switch from their current preferred payment type to another type if it meant getting a discount on a purchase or a reward. Having more consumer data to work with will let merchants target those programs with increased precision.
But merchants need to be careful about how they use this data. About three-fourths of consumers told researchers that they worry about getting too many inappropriate or irrelevant offers or messages via email or text. More than two-thirds worry about being inundated with too many offers as they shopâeven if theyâve asked for those offers. So merchants must balance the number and quality of communications. They should also use geolocation and analytics tools to provide relevant messages to the right customer at the right timeâand to find ways to develop deeper customer insights without being too intrusive in the collection and usage of data.
Finally, donât forget that other players are interested in this data as well. Merchants will need to find ways to avoid being disintermediated by apps providers whose intent is to gather point-of-sale data for their own marketing efforts. In the age of omnicommerce, maintaining control of this data asset will be key to owning the customer relationship.
Survey Methodology
The survey results contained in this report are from the 2013 Vantiv Insight Series research. Each January, a representative sampling of 1,200 U.S. adults are surveyed about their payment practices and preferences, and Vantiv makes key findings available to Vantiv merchants and financial institutions seeking to understand payment trends. For more information about the Vantiv Insights research, visit vantiv.com/research.
Vantiv is the NAFCU Services Preferred Partner for ATM, Debit Card & Gateway Processing; Credit Card Processing & Servicing; Merchant Services.
Also available: Top 10 Payment Processing Trends for 2013 (Recorded Webinar) »