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How Card-Based Installments Are Shaking Up the E-Commerce Industry

How Card-Based Installments Are Shaking Up the E-Commerce Industry

Burgeoning financial technology is reshaping the way people all around the world, from all walks of life, make their purchases. The modern customer typically prefers to have an increased number of options from which to choose — including but certainly not limited to cash, credit, PayPal, Bitcoin, Venmo, Apple Wallet, and more.

Merchants who offer their customers a variety of these payment methods can expect a greater number of completed purchases. In fact, one poll found that 56% of online shoppers expect to be offered a variety of payment options upon checkout, and this expectation was third only to free shipping options and a guaranteed date of delivery.

Benny Yanay

The Rise and Benefits of Card-Based Installments

One trend that’s beginning to gain steam in the e-commerce industry is the rise of interest-free, card-based installment payments. Merchants that adapt installment technologies that allow their customers to make an installment agreement upon purchase with their existing Visas or MasterCards will have an edge. This permits the buyer to pay a set monthly rate for the purchase at hand, rather than adding the whole price to the customer’s existing credit card debt.

The option to sign up for installment payments empowers customers on several fronts, allowing them to stick to their budgeting goals, making their purchase more affordable, and permitting them to build a better credit history without being burdened by sky-high interest fees. On the merchant’s end, the inclusion of the interest-free installment offer works to encourage purchases and augment conversion rates.

The average e-commerce shopping cart abandonment rate is at a whopping 65%, with a puny conversion rate amounting to a little over 2%. While online users may abandon the cart for a number of reasons, such as high shipping costs, uncertainty about the item, or a sub-par user experience, providing them with the option to make installment payments immediately gives the shopper an extra incentive and mental encouragement to go through with the purchase. It would be in any merchant’s best interest to offer such incentives to enhance the online shopping experience by adapting to the user’s preferences and purchasing capabilities.

A Welcome Alternative to the Traditional Credit System

The credit card industry is riddled with high fees and interest rates, complex rewards programs, and other obstacles that can make having a credit card more of a hassle than it’s worth. It’s becoming increasingly easy to get behind on payments and fall into debt, an issue that plagues many, often with life-changing consequences.

Only six countries in the world currently offer interest-free installment payments via credit card: Brazil, Mexico, Argentina, Greece, Turkey, and Israel. Even though its presence is rather small on a global scale, merchants and customers alike benefit from the installment method.

In fact, 10% of Brazilians use Crediário, which offers millions of people the ability to pay for goods and services of varying prices over 48 monthly installments. Furthermore, the trend towards this payment model increases significantly in the realm of online payments, with 80% of all e-commerce transactions made in Brazil adhering to the installment method. This figure is substantial given that Brazil boasts the fifth largest digital market in the world, and Brazilians account for 40% of all Latin American internet users. Given that Brazil also has the most mature e-commerce market in Latin America, it’s clear that other countries should take heed of their installment offerings and note the success it’s had in the region.

Moving Forward with Card Installment Payments

The payment industry is taking steps toward rolling out the installment initiative, with MasterCard testing out pilot programs across Europe over the past year. Discerning industry leaders understand that consumers are more likely to make purchases and even spend more at the point of sale if a variety of options are readily available.

E-commerce retailers (in addition to brick-and-mortar stores) would be wise to jump on the bandwagon with card-based installments, and could see a significant improvement in conversions and profits if they meet the customer on middle ground; a win-win situation is certainly possible for merchants and consumers alike.

Forget the Data: Start with a Relationship-Based Marketing Strategy

Forget the Data: Start with a Relationship-Based Marketing Strategy

I don’t think I’m alone when I say my life has been completely altered by data.

When I wake up in the morning, the first thing I do is check my customers’ social media accounts. Are we seeing increased activity on LinkedIn? How’s that Facebook ad campaign rolling along?

From there, I turn on Spotify, which has created the perfect playlist for me by tracking my listening preferences. Around 10:00, I’ll check my Fitbit Charge to find some motivation deep within to get moving.

Data is what establishes strategies that pay off, what allows us to investigate the past to plan for the future, what creates targeted campaigns with the precision of a Japanese Ginsu blade, and what helps our clients crawl inside their customers’ brains.

But here’s a confession: I think the industry’s obsession with metrics, segmentation, and algorithms often leads in the wrong direction, one that pushes marketers further from the ultimate goal of building lasting and meaningful relationships with customers.

Big data will only take us so far, and at some point, a human perspective needs to join the effort. “Big Data and Beyond” – Tyler Douglas

Don’t get me wrong. I understand that collecting, analyzing and correlating relevant data is key to building strategies that work.

But what I worry about is our increasing dependence on computer-based algorithms to make decisions regarding carbon-based organisms. While the deep insights culled from data can help build bridges and foster connection, marketers often miss the forest for the trees. Data becomes the bottom line, a goal unto itself–and customers wind up as mere metrics.

Ultimately, we should aim for a strategy where the right usage of the right data at the right moments lets customers know they are really being understood. The key to real relationship-building is to strike a balance between people and metrics so that they work with and enhance, one another. Here’s what I’ve learned from my own experience:

“Realize that big data and analytics will only take you so far and that ‘soft’ data that comes from activities like customer immersion, observation and direct conversations is where many organisations will find the sort of insight that will really help them stand out.” Adrian Swinscoe

Use data as part of your strategy 
Many analytics tools today do little more than adding additional complexity to the already complex challenge of understanding your customers. Businesses are collecting hoards of customer data–but most of it is just extraneous noise.

This noise will only distract you from building genuine relationships with your customers. Sure, analytics shouldn’t go neglected. But when it comes to your business strategy, it should be just one small part of engaging with your customers.

Know that numbers don’t tell the whole story. 
According to a recent Adobe study, 64% of companies have separate teams for handling online and offline data. While it may seem like an efficient business strategy, this common practice fails to take into account a holistic picture of a customer.

Ultimately, the result of our dependence on data is that we make conclusions about our customers that simply aren’t true. While it’s important to understand customer behaviors and habits to create effective campaigns and strategies, we often mistake correlation with causation when we rely on data alone.

A few companies serve as good examples of more holistic approaches to customer data analysis. Vision Critical’s Sparq, for instance, asks customers for input so that they can create broader and more human customer profiles. Getting customer input is essential for learning about customer needs and preferences and marketing your products to them accordingly.

Customer survey tools like Surveymonkey also come in handy here, because they provide customer information that’s critical when it comes to engaging with your customers on a personal level. Don’t be afraid of bad customer reviews; just as positive reviews help us by telling us what aspects of our product to maintain and even enhance, negative responses guide us in changing our products or business strategy to better suit our customers.

For small and medium-sized businesses, reaching out to customers brings more value than just their data: It also shows that you care and, in doing so, encourages ongoing customer loyalty.

Big data is here to stay, as it should be. But let’s be realistic: It’s an important resource for anyone analyzing data, not a silver bullet.- Gary Marcus, NYT

Empower your decision makers
Harnessing data should make it easier for your teams to make timely decisions. But when teams are afraid to make moves until they have analyzed “the data”, they overlook opportunities for human-to-human interaction with customers.

Consider Zappos: They’re known for their acts of kindness, like sending down-in-the-dumps customers oversized flower bouquets. The alpha-bouquet–a bouquet and card that Zappos sent immediately to the grieving daughter of a deceased customer– was an impulse so raw and authentic that it couldn’t have been scripted. If that Zappos customer service rep had to stop to read “the data” before taking action, the world would have lost out on a perfect example of deepening connections with customers.

The idea of hyper-engaging one’s customers is becoming a trend, and other companies are jumping onboard. Optimove, for example, has a real-time hyper targeting tool that helps predict customer behavior by allowing teams to pre-craft those spur-of-the-moment experiences. The end result? Your customer feels personally engaged and understood.

In order to successfully grow your business, it’s important to put in the effort to deepen your understanding of your customers. When your customers feel that you, as a business, genuinely care about their needs, they’ll feel empowered–and will keep coming back.

Use interactions to make big data human
Just as it was worth investing in your data mining toolset, it’s worth investing in sales reps who will make customers feel valued and important.

Customer relationship management (CRM) platforms are one tool that helps companies communicate more directly with customers. When sales and marketing teams have access to real-time customer data and updated product information, they can communicate with customers about their most relevant needs. Pepperi‘s mobile platform, for instance, enables salespeople to more easily address customer questions and concerns by providing them with full access to customer sales data, alongside a fully functional product e-catalog, even when they are on the road and offline.

Customer data is nothing without customer engagement. Whether you’re just starting your business or have been in the industry for years, it’s essential to interact with customers so that they feel empowered, appreciated, and committed to your brand. Otherwise, all you have is a lifeless pile of data points leading your efforts astray.

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Enterprises Without IOT Strategies Are Already Behind

Enterprises Without IOT Strategies Are Already Behind

The Internet of Things (IoT) is already transforming the way information is processed and communicated in such a rapid way that enterprises without a powerful IoT strategy are likely to find themselves lagging behind.

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Gartner recently predicted that by 2020, almost half of companies’ revenue will come from IoT. They also expect 25 billion “things” to be connected to the Internet by then, inevitably making our lives more interconnected and our devices more aware than ever. This prediction, alongside the fact that IoT is now prevalent in our everyday lives, means that enterprises without IoT technology are looking for solutions. Interestingly, they are looking to startups for help.

IoT Transcends Industries

Traditionally, technology was categorized by industry, application or type. Startups with innovations in telecommunication tested their technology with telecommunication enterprises; start-ups operating in the BI world test their technology with BI enterprises, and so on. Since IoT transcends industries and traditional categories, many enterprises lack the infrastructure to test new technologies in their existing ecosystems.

IoT technologies have been developed and integrated into nearly every industry from transportation to agriculture. Even healthcare is getting in on the action – there are now medicine boxes that can remind patients to stick with their prescription regimen. But without standardization and security, enterprises are apprehensive and reluctant to move forward with start-ups. Testing technology in IoT is still one of the leading challenges they need to overcome.

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Who’s Afraid of $5 Branding? – The Future of the Creative Industry in the Age of Automation

Who’s Afraid of $5 Branding? – The Future of the Creative Industry in the Age of Automation

Those of us in the branding industry have seen several emerging trends that appear destined to integrate permanently into the way we do business. These trends are as far-reaching and diverse as businesses embracing purposeful brand activism, to the ever-growing rise of artificial intelligence in branding strategy and execution.

Friend or Foe? Artificial Intelligence and Branding

New developments in AI, such as automation and machine learning, have already creeped into the world of brand strategy and design. Through a quick analysis of user preferences and tastes, people are using AI to analyze a user’s design style and suggest appropriate fonts and logos. It’s not hard to see the appeal: automated branding takes minutes rather than days, and costs a fraction of what a human designer would charge.

Some now fear the next stage–that using machines to design and implement branding will put human designers out of work. This sort of debate isn’t new. But, despite similar protests in the past, today all sorts of automated services, from self-checkout counters at grocery stores to electronic toll booths, are commonplace.

Conversations as well as services are becoming increasingly automated; even Facebook has introduced bots that can book you a car and order you food, and Amazon’s popular Echo can automate basic tasks in your home. Given this trend, should designers be worried?

Not really. While concern in the business world may have some merit, the use of artificial intelligence for branding is decidedly different from typical examples of machine labor. While it’s true that self-checkout counters might eventually replace human cashiers, automated branding does not replace designers, nor is it likely to. Instead, automated branding opens up doors for startups and small businesses that otherwise wouldn’t have the budget for good design. And as automated branding fills this niche, designers–who could incorporate AI into their own design strategy–could benefit.

The Democratization of Branding

Well-designed branding should not be the exclusive domain of the biggest and most successful companies. Both the gig economy and the automated creative industry are now providing opportunities for small players to get a leg up in their respective fields. As is the case with hiring freelancers from sites like Task Rabbit and others, automated design providers allow humble businesses to enjoy quality work with limited budgets. Considering the kinds of expenses new businesses face, anything that helps them achieve financial independence is a good thing.

And startups aren’t the only businesses that will benefit. Automated branding companies like Tailor Brands service everyone from soccer moms making logos for team uniforms to kids who create branding for gaming clubs. They also service freelancers, dog walkers, and people pursuing their dreams after work. Sure, machine-created logos are used for traditional marketing purposes. But, they’re also amping-up your neighbor’s hobby baking business or social media profile. It’s likely these are things that users wouldn’t have hired a professional designer to do anyway.

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Why Interest Free Installments Will Boost Your Business

Why Interest Free Installments Will Boost Your Business

As participants in the e-commerce rat race, you know better than anyone how necessary it is to set yourself apart and get ahead, and now is the best time to do just that. The holidays are your outlet to not only reel in the customers, but also convince them to become loyal ones.

Credits: comScore, PR Newswire

Credits: comScore, PR Newswire

After all, online spending during the holidays was expected to increase by 18% this year alone. Throw in the general competition that permeates the market at any given time of year, and you can either spend this next month falling short or winning big. Assuming that winning big is your goal, new ways of thinking will help get you there.

Benny Yanay
This brings us to a new tool available in the marketplace – interest-free installment payment programs.

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Revenue Hack/Growth Hack: The Secrets to Selling Online

Revenue Hack/Growth Hack: The Secrets to Selling Online

In a competitive business world of big ideas and small attention spans, it is a challenge in and of itself to compel onlookers to turn into customers. What a lot of industries fail to recognize is that by giving these onlookers subtle, but very real, incentives to buy your product or service, you are substantially increasing your odds of converting sales. Below are 5 ideas as to how you can, and will, do just that:

Limited Time Offers

By pushing a limited time offer onto your potential customers, you apply a sense of pressure (but nothing invasive) to viewers who are on-the-fence about your product or service. Simply put, people feel compelled to meet deadlines, especially when there is the notion of scarcity. In this case, time is of the essence. For example, the world renowned Air Jordan sneakers have seen time and again the lengths people will go to get their hands on a limited product.

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