PCM MPE 2017 Special
This is a special issue created for the Merchant Payments Ecosystem event in Berlin 2017. This special issue focuses on various topic in the Payments & FinTech industry ranging from Loyalty to Emerging Markets and Risk & Fraud
This is a special issue created for the Merchant Payments Ecosystem event in Berlin 2017. This special issue focuses on various topic in the Payments & FinTech industry ranging from Loyalty to Emerging Markets and Risk & Fraud
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expert interview<br />
• Merchants can increase their<br />
revenue and profitability: a loyalty<br />
program engages customers and<br />
as a result increases their average<br />
basket, ticket size, and repeated<br />
visits depending on the various<br />
campaigns run and their objectives.<br />
• Merchants can manage their<br />
stock differently, running special<br />
campaigns and promotions on<br />
products they have not sold.<br />
<strong>PCM</strong>: What advice would you give<br />
to merchants who would like to<br />
implement a loyalty program?<br />
Pierre: For short-term impacts,<br />
merchants are better off to provide<br />
promotions. However, running a loyalty<br />
program requires some long-term<br />
commitment if the program is meant to<br />
run for several years.<br />
Some merchants will carefully consider<br />
a solution provider who can bring an<br />
agile, flexible and scalable technology<br />
needed to support a long-term loyalty<br />
program. Others, who have the right<br />
resources, will prefer to build their own<br />
solution.<br />
Retail banks also run loyalty programs<br />
and need the support from merchants<br />
to fund the rewards for their customers.<br />
Those banks face today a decrease<br />
of revenues that used to fund those<br />
programs in the past. Those interchange<br />
revenues are now limited as the<br />
interchanges fees are capped by the<br />
regulators.<br />
Therefore, some merchants could<br />
consider joining a loyalty program setup<br />
by a retail bank involving a network of<br />
merchants (coalition). It might be more<br />
interesting than to set up their own<br />
loyalty program. In that case, merchants<br />
will benefit from shared communication,<br />
shared data and shared infrastructure,<br />
but will also face their own competitors<br />
participating in the same coalition.<br />
Welcome Real Time<br />
Photo by Joe Loong<br />
Welcome Real Time is part of the<br />
Collinson Group, a global leader in<br />
shaping and influencing customer<br />
behaviour to drive revenue and add<br />
value for our clients. Through our range<br />
of proven and innovative payment<br />
based solutions, Welcome Real Time<br />
helps organisations run real-time<br />
loyalty and marketing programmes<br />
leading to improved customer<br />
satisfaction, retention and profitability.<br />
17
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