Retailers want better data for targeting customers, and partnering with payments providers may be a way of getting it, according to a new report from Colloquy.
The report, Ally in the Aisles and Online, surveyed hundreds of merchants and more than 1,000 consumers in the U.S., and found that 60 percent of merchants said they lack reliable data for finding the right new customers, and 85 percent are looking for ways to add value to their retail offerings beyond discounts, promotions and loyalty programs.
Half of the merchants in the survey reported that they use spending data outside of their own retail locations, and 79 percent agreed that understanding how customers spend with other merchants would be a useful marketing tool. And while 76 percent of merchants said a strategic partnership would make it easier to enhance their value proposition to customers, only 31 percent reported partnering with a payments provider. And of that 31 percent, 88 percent said they send offers to existing customers and 76 percent send offers to new customers.
A total of 48 percent of the merchants partner with outside brands (payments providers or others) to deliver discount offers to their customers.
“Retailers have to adapt to succeed and payments providers are ideal partners,” said Mike Passilla, CEO of Chase Merchant Services, which sponsored Colloquy’s report. “Banks and payments providers are on the forefront of innovation and can help merchants optimize the shopping experience for customers, such as implementing mobile technologies, ensuring secure payments and offering marketing insights.”
The survey also found that 61 percent of retailers use loyalty points or benefits to add value to customer relationships, but 83 percent said giving their loyalty members more reward options is important, and they want to ensure members spend rewards at their stores rather than redeem them elsewhere.
And 86 percent said a poor checkout experience, either online or in-store, is a competitive disadvantage, with 70 percent rating faster transaction speed as the most desirable element of an improved checkout experience.