David

De-Archiving: What Is It and Who’s Doing It?

De-Archiving I first heard the term “De-Archiving” a few months ago on a visit to a few studios in Hollywood. On that trip, I learned that approximately 500,000 feature length films exist in the world. As of 2016, Netflix had just 4,335 movies online, plus
Mitigating the Downtime Risks of Virtualization

Mitigating the Downtime Risks of Virtualization

Mitigating the Downtime Risks Nearly every IT professional dreads unplanned downtime. Depending on which systems are hit, it can mean angry communications from employees and the C-suite and often a Twitterstorm of customer ire. See the recent Samsung SmartThings dustup for an example of how

CONTRIBUTORS

A Look Beyond the Basics of Cloud Database Services: What’s Next for DBaaS?

A Look Beyond the Basics of Cloud Database Services: What’s Next for DBaaS?

Cloud Database Services When it comes to choosing the right database management system (DBMS), developers and data analysts today face ...
David

Egress Fees Don’t Work for Users – Unlimited Free Egress Is Here

Unlimited Free Egress All of the leading object storage vendors – Amazon, Google, and Microsoft – charge for egress (“egress” ...
Protect Against Network Failures

Five Things Organizations Can Do To Protect Against Network Failures

Protect Against Network Failures It is no surprise that whenever there is an outage in a public or private cloud, ...
How To Be Data Compliant When Using The Cloud

How To Be Data Compliant When Using The Cloud

Data compliant Companies using the cloud for data storage, applications hosting or anything else, have to carefully consider data compliance ...
Chris

Why Containers Can’t Solve All Your Problems In The Cloud

Containers and the cloud Docker and other container services are appealing for a good reason - they are lightweight and ...
Cloudification - Budgets are Shifting Toward a “Cloud-first” and “Cloud-only” Approach

Cloudification – Budgets are Shifting Toward a “Cloud-first” and “Cloud-only” Approach

Cloudification and the Budget Shift Gartner has recently predicted that by 2020, a corporate "no-cloud" policy will be as rare ...
Best Practices in Disaster Recovery and Business Continuity

Best Practices in Disaster Recovery and Business Continuity

Best Practices in Disaster Recovery Hope for the best, prepare for the worst, and expect to be surprised. While that ...
The Lighter Side Of The Cloud - Delegation

Viewing Digital Payments as a Boulevard of Commerce

Sage

Digital Payments

A boulevard is a wide street that runs in two directions and usually has a median in the middle. This is important to remember for anyone looking to build a strategy for payment and commerce in the mobile world, because it symbolizes an approach that is equally applicable to start-ups, small businesses, and established enterprises.

Once, the chief focus of payment was unidirectional, that is to say, the money travelled in one direction, from customer to vendor. In exchange, the customer received a product or a service. Even when financing or lending institutions were involved for larger transactions, the money trail was more like a one-way street. Any situation that required a return or refund often steered the customer to a separate place – the returns department or customer service department – where the complaint was to be handled, and the customer’s money was to be returned either as cash or as an in-store-credit.

This one-way street has now been replaced by a wide boulevard. Customers are far more empowered than they used to be and they know it. They carry a great deal of knowledge with them, primarily on their smartphones; this includes competitors’ prices – both other stores and online marketplaces, reviews, and alternative purchasing opportunities. Like a real-world boulevard, traffic travels much faster than it would on a one-way street, and most significantly, it travels in both directions.

Multidirectional

The capacity to provide refunds, to handle returns, and to basically recirculate money back to the customer is becoming an enhanced part of the commerce relationship. Here’s why: the technologies and techniques that enable payment are many and varied (this is something we highlight and quantify in our series, Go Beyond Payments: What’s Now and Next, in PCWorld – Click here to read). They include tap credit cards, Apple Pay, and Samsung Pay and mobile wallets, all of which enable one-touch simplicity and security that makes the customer purchase experience more convenient and secure. They also allow brick-and-mortar retailers to compete head-to-head with Amazon, by matching its “one-click” payment option, a technique that it held as a proprietary competitive advantage until only recently.

The speed and convenience of one-touch payment raises the bar of expectation for other areas of commerce, specifically returns and refunds. It is expected that the return of monies should be as convenient and effortless as the original transaction, not merely via a customer service department, but anywhere, and through any device.

Some merchants have already taken the step of building returns into their sales model. Trunk clubs, for example, send a selection of products, like shirts, to a subscriber, with the full expectation that the customer will choose one or two and will send back the rest. The return concept has been built into the marketing model. The costs of mailing and return delivery is being built into the overall marketing budget. It is not being borne by the customer.

The ease of instant return and refund makes up the other side of this high-speed transactional boulevard. But what about the middle? The reason to use a boulevard as the analogy, and not just a regular road, is because this middle section is very visible and very profound. In the world of commerce, this middle represents data.

Data Is King

Even when a store completely strikes out, with a customer asking for a 100 percent refund on every item they have bought (a rarity, hopefully), the retailer still wins. Why? Because the data remains. Data is used to build more accurate customer profiles, deliver more tailored and relevant messaging, and provide a far more personalized in-store customer experience. No matter which direction the money flows, the retailer ends up with a net gain, if it is astute enough to collect, process and redistribute customer data in real time.

The marketplace will continue to evolve. Chatbots will start to assist sales associates in building relationships with customers. B2B field agents will have access to every element necessary to support a sale, from catalogs to contracts. Traditional vendors will start to discover additional revenue streams, online, in the aftermarket and by offering everything-as-a-service. Tying this all together will be this three-channel thoroughfare: one side travelling to the merchant, the other travelling to the customer, and in between a fertile bank of priceless data.

Startups and small businesses are uniquely positioned to take immediate advantage of this boulevard mindset thanks to their agile management structure. It is much easier to embrace this new bi-directional money trail than it is for larger organizations, which face resistance and slowdown due to internal silos and long-established processes and obligations. Small businesses are used to keeping their senses sharp for opportunity and innovation, and startups, by their very nature, must enter a marketplace fully engaged in the realities of the moment.

Ultimately, the customer now owns the show, and data is the predominant currency of business. Organizations that recognize this are best suited to survive and thrive for the next few years at least.

This post is brought to you by Sage Payment Solutions and IDG.

The views and opinions expressed herein are those of the author and do not necessarily represent the views and opinions of Sage Payment Solutions.

By Steve Prentice

Steve Prentice

Steve Prentice is a project manager, writer, speaker and expert on productivity in the workplace, specifically the juncture where people and technology intersect. He is a senior writer for CloudTweaks.

View Website

Cloud Community Supporters

(ISC)²
Cisco
SAP
CA Technologies
Dropbox