Small businesses can improve their prospects in the marketplace if they are able to provide easy access to information, frictionless payments, a simple returns policy, and personalised shopping options.
This is part of submissions in a Visa Consulting & Analytics (VCA) report titled ‘Accelerating the shift to eCommerce’, where it was reported 81 percent of customers indicated they are willing to pay more for a good customer experience.
According to Kemi Okusanya, vice president, Visa West Africa, small and medium-sized businesses (SMBs) that leverage eCommerce solutions, which provide an excellent online shopping experience for consumers, have the opportunity to benefit from high spending 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.
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 percent 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,” says Okusanya. “When a shopper abandons an online shopping cart due to checkout friction, the data shows that 67 percent end up leaving for a competitor or never complete the purchase anywhere, and 59 percent say they are less likely to shop with that same retailer again.”
It is, however, 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 its infrastructure and digitising their business.
“The VCA report highlights how the payment experience is a critical touch-point – a part of the customer journey, which requires special attention,” Okusanya further explains. “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.”
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.
