How much businesses value their customers in this digital era reflects how they operate and secure customer data. A foolproof payments strategy is central to building trust with the customer.
We’re seeing an increasing demand for digital engagement in today’s economy. Consumers are steering away from traditional purchasing methods and gravitating toward E-commerce or digital commerce. According to the Pew Research Centre, the number of adults that regularly use the Internet will reach 93% in 2021. This number is even higher for internet access between the ages of 3 and 18. All this access to the internet results in much data from these people, which businesses use to promote their products and services. But the lack of trust is still an issue that restricts people from enjoying meaningful engagement in the digital space.
This article will talk about the issues surrounding security in the digital space and how the strategies adopted by companies can overcome them. We will conclude with the prospects of digital engagement, with a view on the brighter side of its effects.
COVID-19 and Digital Adoption
The pandemic has ensued an era of digital transformation forced on many businesses and people alike, with companies across industries witnessing an over 10% growth in digital customer base. Digital adoption has certainly simplified lives greatly, but it has also posed challenges in other respects, such as loss of privacy and monopoly of E-commerce companies. These issues have triggered a shift in consumer preferences that have evolved to suit their priorities. Here’s the lowdown on how digital commerce is changing the way people shop, pay for things, and interact with businesses:
- The concept of online transactions has become commonplace. Consumers can purchase almost anything from their couch with a few taps on their phone or tablet.
- Many consumers use mobile devices rather than computers as their primary method for searching for online products and services. However, it also stems from being able to conduct these activities at their convenience, which has led to a 37% increase in digital activity.
- Consumers have begun paying more attention to where they put their money and why they’re spending it there. As customers become more aware of what goes into making a product, they’re looking toward companies that offer environment-friendly choices. Which brands will receive future purchases is based on previous positive experiences working with those companies.
Modern Engagement Strategies
Businesses can also advertise on social media to connect with consumers.
Social media can be used to reach and engage consumers. It’s also a valuable channel for building trust among your customers and fostering deeper relationships with them. This means that social media is essential for businesses to have in their marketing arsenal. There are plenty of channels in the social media category, and the best ones are those used by your target audience the most. Having a sense of which channels to include in your digital strategy helps optimize costs for businesses and increase ROI as a result.
People nowadays tend to follow brands that address social issues and break stereotypes. They identify with the cause and idealize the brands for supporting it, instilling a sense of pride in their brand choice. Businesses need to realize the power of social responsibility and put effort into a sustainable future. With all the data available to companies, customers expect innovative offerings that serve a real purpose in their lives. Trust will go through the roof if businesses target valuable problem statements rather than just spreading consumerism.
Increasing Awareness Regarding the Benefits of Omnichannel Payments
The proliferation of touchpoints means that customers interact with businesses across multiple channels at any time. Today’s consumers seek consistent experiences across all channels to make informed decisions about who to do business with. Businesses should, therefore, work on building trust and improving engagement with consumers across the channels. The best way to do that is to be responsive and resolve customer queries swiftly. Customers need to be educated about the feasibility of an omnichannel payments system over individual online payment modes. It is more robust.
As consumers become more familiar with using digital channels to engage with brands, they are becoming more sophisticated about their expectations regarding how these interactions should work (or not). Suppose they cannot access information through their preferred mode of communication quickly and easily (or at all). In that case, customers will move on to find a company that can deliver those experiences better than yours. It has been seen that three out of four customers are ready to share more personal data with businesses that operate transparently. This is a crucial aspect of a multiparty payments system, as financial data is more prone to cybercrime.
Developing Trust in Contactless Payments
Consumers are citing security concerns as a reason for not embracing contactless payments.
In the wake of recent data breaches and privacy scandals, consumers have expressed their desire for businesses to be more secure, to have their data protected, and for their privacy to be respected. Suppose enterprises want consumers to trust their company with their personal information and become loyal customers—in that case, they need to develop a robust digital engagement strategy and deliver exceptional experiences while demonstrating dedication to security.
Payments companies have an opportunity to address the public’s uncertainty about contactless payments more systematically. However, many shoppers still aren’t aware they can use their wearables to pay for goods and services. Even if they do, there is improper information about the benefits of contactless over card payments. This leads to distrust among consumers who are reluctant to adopt new payment technologies. With an educational approach, merchants could become more comfortable supporting mobile wallets and wearables as a form of payment. Meanwhile, customers would also begin using them more frequently when they are sure of a frictionless payment experience.
Digital engagement has become vital
There is an adage that “trust is the foundation of any relationship,” but it’s especially true when you’re building your business in an era of digital transformation. That’s because trust is a key driver of engagement and loyalty, two important factors driving revenue, customer satisfaction, competitive advantage, and overall success. It’s how consumers choose their financial institutions, doctors, insurance providers, and government officials. In business transactions, trust enables people to transact online with relative ease and confidence in their transaction partners.
We believe that the future of digital engagement is in the hands of consumers. Businesses cannot force anything on the customers, and relationships that offer free choice based on the value provided—are more sustainable in the long term.
We can help you build similar digital payment experiences for your customers. Reach out to us to know more.