How Banks and Merchants Can Drive Customer Digital Engagement

PYMNTS eBook, Banyan

In an environment where consumers are tightening their belts and rethinking brand loyalty, item-level data can be key for retailers, Banyan founder and CEO Jehan Luth writes in “What’s Your Plan? Payments Strategies for a Strong 2022 Finish,” a new PYMNTS eBook.

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    Merchants and financial institutions that make their customers’ lives easier through differentiated digital experiences will have an advantage, particularly in the current economic environment. That’s why, at Banyan, we’re focused on accelerating our technology and infrastructure growth to help merchants, hotels and banks offer digital experiences that save time, cut costs and make lives easier.

    Item-Level Receipt Data Is Key to Customer Digital Engagement 

    We’re excited about the network-capability investments we’re making around item-level receipt data.  They will enable financial institutions to increase customer engagement by delivering personalized digital experiences, and enable merchants to streamline the purchase experience and create new sources of sales revenue. In an environment where many consumers are tightening their belts and rethinking brand loyalty, item-level data can be a key for retailers to offer real savings leveraging strategic “aisle” budgets, while also managing inventory levels and efficiently driving sales retention.

    Item-level data gives more control to merchants to structure their card-linked shopping offers to move inventory at the category, brand and even product level. The efficiencies that come from these more precise promotional efforts can deliver greater savings for consumers, at a time when they’ll appreciate those savings more than ever.

    The recent “Tapping Into The Benefits of Item-Level Receipt Data” report (a PYMNTS and Banyan collaboration) reveals 67% of firms that are investing in data to advance their business believe the use of receipt data is highly likely to attract new customers and encourage them to switch from other companies.

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    Embracing Digital Innovation to Win with Customers During Economic Slowdown 

    With inflation hovering at a 40-year high and recession fears rising, consumers are feeling the bite. That’s why a current trend is “trading down,” migrating from a more expensive product to a less-expensive version. For example, 43% of grocery shoppers are now purchasing lower-priced generic brands to save money, according to Morning Consult.

    This trend is playing out in almost every industry and companies are trying various strategies to counter it. In the travel industry, where spending dropped after months of increases, companies are responding by cultivating customer loyalty through more personalized, frictionless, data-driven experiences that foster engagement and brand differentiation.

    One example of this is in the hospitality industry where hotels can enable small business clients and their traveling employees to streamline and even eliminate their business expense reports. How? A data infrastructure network, such as Banyan, can securely deliver item-level receipt data from hotel and merchant partners to payment card issuers and expense management providers. This results in faster, easier, more accurate business expense reporting and reconciliation for all parties.

    Final Thoughts

    In travel and every other industry, there are headwinds. All businesses must make smart decisions to manage through them. Firms that focus on growth investments and leverage data to deliver more efficient digital experiences will have the smoothest trip to better times.

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