Visa Report: Ecommerce Key to Unlocking Merchant Revenue Growth During The Festive Season
If small businesses can provide easy access to information, frictionless payments, a simple returns policy, and personalized shopping options, they are likely to have an immediate advantage in the marketplace.
This is according to Visa Consulting & Analytics (VCA) report titled Accelerating the shift to eCommerce, where 81% of customers indicated they are willing to pay more for a good customer experience.
“Small and Medium-sized Businesses (SMBs) that leverage ecommerce solutions; which provide excellent online shopping experience for consumers ;have the opportunity to benefit from high spend periods like Black Friday and the coming festive season compared to businesses who have not mastered the importance of holistic back-end design of the customer journey” says Kemi Okusanya, Vice President, Visa West Africa.
The move to increased online shopping comes on the back of most retailers driving their customers online due to different lockdown restrictions that affected in store foot traffic. Visa’s Covid 19 Impact Tracker, released earlier this year showed that up to 68% of consumers were going to grocery stores less often. As the retail sector looks to driving recovery, the approach to periods like Black Friday has also evolved and further necessitated safer, better online payment experiences.
“The impact of a bad payment experience can be devastating. When a shopper abandons an online shopping cart due to checkout friction, the data shows that 67% end up leaving for a competitor or never complete the purchase anywhere, and 59% say they are less likely to shop with that same retailer again,” adds Okusanya.
It’s encouraging that most small businesses (60%), according to the VCA report, have taken bold steps to prepare for the seasonal sales activity that kicks-off with Black Friday. The preparation includes changing their infrastructure and digitizing their business.
“The VCA report highlights how the payment experience is a critical touchpoint – a part of the customer journey, which requires special attention. Each time a potential customer reaches the checkout page, they have a moment to reflect on whether the effort needed to make the payment is equal to the value they get from their purchase. To win prospective and repeat customers, SMBs need to have a digital presence during the discovery and evaluation stages of the customer shopping journey”, concludes Okusanya.
Digital payments provide a convenient and secure way to pay for customers. For businesses, they reduce the friction arising from handling money, limit customer queuing, grow their customer base as a result of enhanced experience and eventually improve sales and profitability. As online shopping becomes the norm for consumers and businesses continue on the road to economic recovery, digital payment and in particular frictionless e-commerce experiences, will become a competitive advantage for small businesses.