On-demand payments are a significant shift in the way that consumers prefer to shop and buy and the way that merchants push the payment process into the background.
New research identifies how card-on-file solutions have been given a new lease on life and are now the primary consumer method for making payments via mobile devices.
The report – From Card-on-File to On-Demand Payments: New Payment Model and Strategies For Payment Providers – by Mercator Advisory Group describes several examples of third-party solutions that enable consumers to better control and manage their payments.
Examples are also cited in the report indicating how card issuers have responded to on-demand payments in a tactical way but have so far failed to grasp the strategic implications of this model.
“Sometimes changes in technology and consumer adoption occur so slowly that both the nature of the change and the magnitude of the change are misjudged.” said Tim Sloane, VP, Payments Innovation, and author of report.
“On-demand payments may appear to be a simple extension to traditional card-on-file solutions, but nothing could be further from the truth. On-demand payments are a significant shift in the way that consumers prefer to shop and buy and the way that merchants push the payment process into the background. With the issuer’s brand almost invisible at the point of purchase, issuers need to identify new strategies to remain relevant to consumers,” notes Sloane.
Startups should consider the impact of on-demand payments and look for growth opportunities that exploit this trend in consumer shopping preferences. Technology changes and consumer adoption play big roles in the shift toward this new way of paying for purchases. The advisory groups report offers insight into other possible reasons for the shift.
- Evidence that the on-demand payments model is the primary driver of the explosive growth in digital payments volume, further displacing cash and check transactions
- Issuers should move from the tactical efforts in place today to a strategic response required to remain relevant with cardholders in the long term
- Industries once thought to be impervious to disruption are now being radically reshaped due to smartphones and on-demand services
You may have heard that Big Data has become the big thing that is propelling companies large and small. Thanks to the constant innovation in technology, the collection and storage of vast amounts customer information has never been easier than it is right now and it’s only going to get quicker and simpler.
Also, the world of tools analysts can utilize to make sense of this info is growing at a rapid pace. Vicky Byrom, Senior Analytical Consultant at Aquila Insight, shares her perspective on the issues facing analyst.
There are now mountains and mountains of new data being produced everyday from a variety of interesting, worthy and valuable sources. Alongside this there’s the avalanche of shiny digital toys with which to slice, dice and interpret all this information. However, this leads to the big concern about data quality.
There have always been problems with data integrity. But now there’s just a whole lot more data to clean up before we can get to the insight. The 2015 Experian Data Quality benchmark suggests that, on average, US companies believe 32% of their data is inaccurate. That’s right, there’s just shy of a third of all data produced which we should be approaching with caution.
This poor data impacts how effective we can be as analysts. We have to spend more time ‘cleaning’, making approximations or just simply ruling out data sources. If customer data is captured inconsistently or incorrectly, analytical insights can be misleading.
In auto-adapting models, the risk is even more significant as the computer brain, unless instructed to do so, may not see how unreliable the captured information is and could direct customers down the wrong contact strategies. It comes back to the age old saying, “Garbage in = Garbage Out”.
So where is it going wrong? There are some data integrity issues that are too big to fix, inherent from legacy systems. We’ve all encountered the aging, patched up systems that have had work around after work around just added to make sure business as usual can continue.
These systems require large scale overhauls, and major investment in data governance. Fixing them is going to be expensive, time consuming and will need buy in from the guys at the top or it’s just never going to happen.
But there are areas where we can improve and influence change. For starters we can advocate, enthuse and generally shout about the third party solutions that are out there. Ready made packages that can go over the top of those unwieldy existing legacy systems.
They cost a fraction of the price in both time and money compared to fixing what is there or building from scratch and will eliminate that errant one third of the data. We should also be looking to make improvements in the processes where data is captured manually, like in most call centers. As analysts we should have the courage of our convictions, step up and champion the promotion of better, cleaner and more reliable data whenever we can.
The Cost of Poor Data Quality
It often feels like we analysts are the only ones who see just how much potential value is lost from poor and unusable data. It is frustrating when we know how it could benefit businesses in terms of targeting the people we should be talking to, at what price and when we should be doing it.
We need to start talking to many more departments in our organizations to emphasize the real value of data capture. We need everybody that touches the data, directly or indirectly, to realize that it is a monetizable asset and that it’s worth is devalued if it’s not captured correctly.
We need to show stakeholders how they can help us understand and improve the information we capture, get them involved in shaping the analytics to turn data into insight that benefits the whole business and our customers.
The upside of all of this is that with better, more reliable data, analysts can spend more time building new, exciting and most importantly, meaningful models for stakeholders, which becomes a win for everyone.
source: Vicky Byrom, Senior Analytical Consultant, Aquila Insight.
The age of real-time analytics and social media, makes true customer engagement easier to measure but harder to achieve. A solid content marketing strategy is even more important to engage customers. The average consumer has become an adept multi-tasker, capable of flitting between multiple devices and services at the same time.
Combine this with the growing use of ad blocking technology and despite today’s hyper-connected digital landscape it’s become much harder for brands to reach consumers through a combination of traditional marketing and digital advertising.
Fortunately, there’s light at the end of the tunnel in the form of data-driven content marketing – a new approach that’s capable of cutting through the oversaturated media environment to reach target audiences with a message that’s both interesting and relevant to them on an individual level.
The role of social discovery in social media
Social media is painted as a challenge to marketing today due to its attention-stealing nature, but it’s the very concept of social sharing that brands should be taking advantage of. Brands are investing heavily (both time and money) into digital channels like Twitter, Facebook, and Instagram, but they’re not taking advantage of the core value proposition these networks offer – social discovery.
From a content marketing perspective, the use of social discovery is a powerful yet non-invasive way to target potential new customers while also maintaining interaction with existing customers that are already engaged.
With more content now available online than ever before it’s become crucial for brands to be present where the customer is, and where conversations are taking place, in order to take advantage of this trend and integrate social discovery into their overall marketing approach. By doing so, they can introduce new products in a far less aggressive and more engaging way.
Social discovery and the future of content marketing
It’s clear that social discovery has an important role to play in the future of content marketing, but for brands to truly stand out they need to introduce a data-led approach to their efforts. Where a data-led approach differs to traditional content marketing efforts is in creating a new way of interacting with consumers on a personal level. Creating content based on what’s most likely to be shared over social media will generate the biggest buzz and greatest number of interactions.
By applying data-driven insights to content marketing, it’s not only possible to accurately predict which pieces of marketing collateral will have the greatest success, but also to A/B test variations of the same content to ensure the biggest possible reach is achieved.
Trialing and testing content before releasing it will also help brands gain a reputation for generating content people seek out and share, rather than block. With this in mind, all brands should use data to inform their content marketing approach; to personalize their efforts for different demographics in ways that haven’t previously been possible, and to target consumers based on their individual preferences.
The value of great content
For audiences, great content is still great content. Video, text, or images that drive passionate conversations and fierce loyalty, even in today’s oversaturated digital world, are far more valuable than those that do not. Introducing data-led content to a marketing strategy opens up the opportunity for brands to get closer to their target audience than ever before. By focusing efforts on creating newsworthy, sharable, and actionable content that’s underpinned by data, it’s possible to dramatically increase consumer engagement.
source: Juliette Otterburn-Hall, Chief Content Officer, Beamly