How should retailers prepare for cashless shoppers?
In the past few years there has been a change in the way consumers purchase, with the UK Cards Association noting just over one billion contactless transactions were completed in 2015. More and more retail customers are using contactless technology, if this continues to rise cash could soon be a thing of the past.
Pippa Glucklich, chief executive of media agency Starcom says: “Retail brands that lead the way in a cashless society will be those who tackle the concerns and issues as well as seeing the positive side of a contactless world.”
The main obstacle retailers will need to overcome in a cashless world is integrating technology effectively into their businesses.
“Many mainstream retail brands have already embraced the new technologies that enable contactless payments, and have provided many customers with a clear path to purchase,” says Glucklich.
“However, local and smaller independent retailers will be most exposed in the future as going cashless will ultimately require investment into new technologies, meaning all new retailers must build this into their business model from the outset.”
Glucklich argues that retailers could also use the change in payment behaviour as an opportunity to build deeper brand engagement with customers. For example, retailers could identify their most loyal customers and provide them with credit to use in store or online by debiting accounts automatically.
“This not only encourages customers to return but also shows how businesses can use the digital economy to their advantage,” she says.
No comments yet