Mobile phones have become a fundamental part of the in-store shopping experience.
Mobile payments represent a large opportunity for merchants, and according to The Guardian mobile technology is the “next big thing” for in-store consumption. But high street retailers need to be doing more to push mobile use or else they risk being overshadowed by advanced competition. How can merchants make the most of this growing channel?
Consumer Choice
Most shoppers are using their phones to compare prices or read customer reviews while in the store. The Guardian refers to this activity as “showrooming.” Showrooming accounts for 6 percent of all shoppers globally, and nearly half of all online sales. It is a growing trend that retailers must embrace.
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The payments industry has high hopes for mobile payments, but still merchants should keep in mind their target audience. Other variables such as financial stress and stagnant incomes should be considered when deciding if your customer prefers to use cash or credit over mobile payments. If your target consumers pay primarily in cash, then don’t force mobile payments technology onto them.
Customer Education
New technology is often confusing and it is important for retailers to instruct customers on how to use new products—otherwise mass adoption is unlikely. The British Retail Consortium reported that 40 percent of registers in the UK are NFC-enabled, however only 2 percent of total transactions have been done with NFC payments. This highlights the important need for merchants and staff members to be briefing customers on how to use mobile payments.
The Customer Comes First
The Guardian suggests that the most valuable part of mobile payments is the power to access big consumer data. The technology allows merchants to retrieve helpful information that can help them personalize promotions and promote increased brand loyalty.
Mobile is now a loaded word, and more companies are taking on new initiatives like the mobile wallet, which include loyalty card schemes. It is integral that retailers are preparing to embrace mobile technology as a part of their loyalty programs if they want to keep up with competitors. Such tactics can help stores improve customer service and sales by offering relevant products to the right customers.
To read the full article at The Guardian click here.
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