New Data Identifies Challenges Faced by Modern Retailers Competing for Customers
December 17 2014 - 11:00AM
Business Wire
COLLOQUY’s report, sponsored by Chase Merchant
Services, finds partnerships with payment providers are a missed
opportunity
Retailers facing intense competition to win and maintain new
customers can gain an advantage by leveraging partnerships with
payments providers, according to new research released today by
COLLOQUY.
The report, sponsored by Chase Merchant Services and titled,
Ally in Aisles and Online, is available as a free download on
COLLOQUY.com and features polling data from both retail
representatives and consumers. It reveals the biggest challenges
facing retailers seeking to provide a seamless and secure
experience to customers. This includes giving customers relevant
offers, delivering value without increasing funding rates and
converting sales through the checkout process.
“Retailers have to adapt to succeed and payments providers are
ideal partners,” said Mike Passilla, CEO of Chase Merchant
Services, the global payment processing, merchant acquiring and
offers business of JPMorgan Chase & Co. “Banks and payments
providers are at 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.”
Key findings from Ally in the Aisles and Online, an analysis
examining what consumers demand and what retailers need to provide,
include:
- Sixty percent of retailers admitted
they lack reliable data to support effective targeting of new
customers for acquisition purposes.
- Eighty five percent of merchants are in
search of ways to add value to their retail offering outside of
discounts, promotions and /or loyalty programs.
- Seventy six percent of merchants
believe a strategic partnership would provide opportunities to
enhance their value proposition to customers, however, only 31
percent reported partnering with a payments provider.
“Businesses need tools and resources beyond what they alone can
provide,” said Jeff Berry, research director for COLLOQUY. “The
pressure on retailers to gain customers by offering an experience
that is attractive yet doesn’t break their budgets is high, and
what many businesses do not realize is that payment providers can
be part of the solution.”
Providing Customers With Relevant Offers
Many retailers fail to reach customers because they have access
to limited data that doesn’t paint a full picture. While 50 percent
of merchants reported using spend data outside of their own retail
locations, 79 percent agreed that understanding how customers spend
outside their locations/properties would be a tremendous marketing
tool. The benefits of having that type of data are clear: Of the 31
percent of retailers that partner with banks or credit card
issuers, 88 percent send offers to existing customers and 76
percent send offers to new customers.
Delivering More Value While Controlling Costs
Sixty-one percent of retailers reported using points or benefits
through the company’s loyalty program as a means of adding value to
the customer relationship. However, 83 percent said that giving
their loyalty members more reward options is important and want to
ensure members spend rewards at their stores rather than redeem
elsewhere.
The data again found partnering with payments providers
underutilized by retailers. Only 48 percent partner with other
brands to deliver discount offers to their customers, yet 76
percent agree that strategic partnerships with complementary brands
would provide them with more opportunities to enhance their
respective value propositions without significant extra cost.
Offering Seamless Checkout Experiences Across All
Channels
Getting a customer to a store or website is the first step, but
ensuring the visit results in a sale is just as important.
Eighty-six percent of retailers believe a poor checkout experience,
either online or in-store, can be a competitive disadvantage,
especially versus their strongest competitors.
With security becoming an increasingly important factor and new
technologies enabling mobile payments gaining popularity, payments
providers are ideal partners capable of providing solutions to
retailers that meet customers’ expectations.
About the Survey
Two online surveys were performed in October 2014: a retailer
survey and a customer survey. The retailer survey was conducted
among 234 middle-and-upper-management corporate employees from U.S.
retailers with annual revenue of $20 million and above, while the
customer survey was conducted among a sample of 1,001 respondents
that are nationally representative of the U.S. population.
About Chase Merchant Services
Chase Merchant Services is the global payment processing,
merchant acquiring and offers business of JPMorgan Chase & Co.
and a leading provider of payment, fraud and data security, capable
of authorizing transactions in more than 130 currencies. The
company’s proprietary platforms enable integrated solutions for all
payment types, including credit, debit, prepaid stored value and
electronic check processing; as well as alternative and mobile
payment options. Chase Merchant Services has combined proven
payment technology with a long legacy of merchant advocacy that
creates quantifiable value for companies large and small. In 2013,
Chase Merchant Services processed 35.6 billion transactions with a
value of $750.1 billion. More information can be found at
www.chasepaymentech.com.
About COLLOQUY
COLLOQUY® is a publishing, education and research practice that
brings together loyalty practitioners from around the world. The
go-to resource for loyalty intelligence since 1990, COLLOQUY
engages and educates loyalty marketers with its magazine, weekly
e-newsletter, and timely and comprehensive loyalty-marketing
website, colloquy.com. In each issue of the magazine, the “COLLOQUY
Recognizes” feature highlights excellence in loyalty. COLLOQUY
delivers industry-leading loyalty benchmarking reports and
educational workshops, webinars and speeches. The COLLOQUY Summit
is the premiere annual loyalty event. Advertising, sponsorship and
publishing opportunities are available via the COLLOQUY Network, a
global partnership of loyalty service providers. COLLOQUY is an
independently operated division of LoyaltyOne. To learn more, visit
colloquy.com.
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20141217005926/en/
Media contacts:Chase Card & Merchant ServicesEdward Kozmor,
302-282-7170edward.kozmor@chase.comorCOLLOQUY PRTim Sansbury,
513-231-5115tim@forza-marketing.com
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