Reliable Feedback Loops: The Key to a Smooth Payment Experience
As the e-commerce industry continues its accelerated evolution after the pandemic, it becomes increasingly clear that customer feedback is essential when designing the ideal payment experience, according to sector experts.
An omnichannel strategy is becoming an essential part of the business strategy of major and minor retailers, explains Bernardo Bazua, Director of Omnichannel and Digital Strategy, Coppel. Omnichannel strategies increase and facilitate access. Companies must ensure that their customers have access to the channel of their preference when acquiring any product or service, according to Bazua. Retailers that offer certain products and services through some channels but not others have an incomplete offering.
“An omnichannel strategy means making products and services available through different channels so the client can choose the way they want to be supported,” said Bazua. Customers spend more when they feel they can choose their own way to get in touch with a company, without having to provide information several times. Customers want to know the service is available, even if they do not use it, said Bauza.
To achieve higher rates of customer retention, an omnichannel approach can also facilitate the gathering of feedback from current, past and potential customers, More channels to support customers also means more channels through which businesses can receive, analyze and process clients’ opinions on their purchase experience. Keeping feedback channels open and as broad as possible is essential to capturing as much information as possible, explained Armando Velez Médici, Head of E-commerce, OPPO.
While some believed that the growth of e-commerce over physical retail might make lower prices more important that payment experience, this has not been the case. Clients are favoring a smooth user experience (UX) over price, according to Erick McKinney, Mexico Country Manager, Adyen: "Over 39 percent of consumers favor experience over price when making a decision."
As the rhythm of digital purchases intensified throughout the pandemic, it became clear that the usual payment security protocols had to be redefined since in their pre-pandemic shape, they heavily hindered the payment experience, said McKinney. "Fraud prevention and payment experience impacted consumer experience during the pandemic, sometimes preventing clients from buying online.”
This concern for redesigning security gatekeeping not only applied to fraud prevention but also to the management of customer data, which must not become less secure but should be more agile. Companies need to generate new ways to use customer information to improve UX without making the information more vulnerable, according to Pablo Estevez, CEO, GUS.
“Companies have to be more proactive with the information they have from clients to make the user experience more unique and customized,” said Estevez. This can only be achieved through open and broad feedback loops through which companies can identify the points in the purchase experience at which the customer feels that they should not have to input additional information or repeat an input. Any friction embedded into the process needs to be identified and extracted, which is impossible without customer feedback.
Much of this friction can be concentrated in the specific point of payment, said Christian León, Latin America Regional Director, Signifyd. When a payment gets declined, a lot of data can be salvaged to determine how those declinations can be avoided in the future, thus increasing customer retention rates. “It is very important to understand the reasons why clients' payments get declined when buying something. We recommend investing in technology to optimize lead conversion and minimize desertion,” said León.
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