Merchants can go all the way round the houses working out the magic ingredients for an offering to enhance loyalty and drive checkout volume and value.
But do they overlook crucial aspects? Are wild assumptions made that ultimately don’t serve the customer at all?
Customers want well thought out options – it’s about offering informed choice.
According to third party research, 40% of EU consumers stated that they “will only remain loyal to brands offering embedded banking products like BNPL and cashback”.
And 72% of UK mobile wallet users have made purchases via a retailer’s embedded mobile app due to better UX.
Forty-three per cent of respondents to a recent Marqeta study “would consider getting financial services from non-financial providers”, including tech companies, social networks or retailers.
It also defines that 77% have no intention of changing their primary banking provider.
On face value this may seem a contradiction in terms, but actually it reveals a compelling reality in that trust and loyalty are still pervasive and new entrants have earned enough credibility to be serious contenders in what is now clearly acknowledged to be a highly competitive and dynamic market.
The trends mean that how financial services are integrated into the journey and how they help the customer achieve their goal are now key.
It is the shift from a product mindset to a journey mindset – a journey with trust at the centre.
Customers are ready to engage with retailers on a deeper level if they can avail of a reliable, secure, and linked-up system.
They want to interact not only in a way that suits them personally but also between the brands and platforms of their liking, and avail of options that are considered and context-driven.
Furthermore, offline events, such as applying for store credit, is where consumer behaviour and, hence expectations are really changing.
Interesting also because offline is where the majority of sales takes place.
The emergence of the so-called super app in other markets along with connected devices has elevated the possible proposition such that payments, products and services can be merged into one interface, organically.
At checkout, instalment and financing options have become ingrained, and are expected.
Consistency drives trust, which powers loyalty in a positive feedback loop. And the more familiar and uniform the experience is across different methods and channels, the more ubiquity is desired and brand loyalty is fostered.
But that’s not to say they should be taken for granted.
Trust is a fickle beast and users want to be reminded that they are in the driving seat with just the right touch of security friction.
For it is control, as opposed to convenience, that is king of the customer trust world. When they can switch fluidly between channels and across platforms with a uniform experience whereby they don’t even consider the mechanics, they can be your friend for life.
Download a free copy of “Embracing the Future of Financial Services – Insights into credit and payments for Merchants”, the new white paper from Visa.
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