Innovation

Deliver the Commerce Experiences Of Tomorrow

In the age of the customer, companies are still missing the mark on contextual and seamless commerce experiences with customers at the core. As an example, a vegan customer who decides to forego their weekly food delivery may visit the grocery store only to receive a loyalty and offers push notification for meat and poultry at check out. Alternatively, a loyal hotel customer arrives at a sister property expecting their room, dining and payment preferences will be honored, yet may be met with inconsistencies between the properties. With over 2.5 quintillion bytes1 (2.5EB) of data collected every day there is an abundance of information available to perfect the customer journey and provide richer experiences; however, too often companies are still falling victim to missed opportunities.

At the end of last year, Visa commissioned Forrester Consulting to create a study on how to “Deliver the Commerce Experiences Of Tomorrow2” which uncovers current issues around antiquated means of collecting customer insights, fragmented digital to physical experiences, and provides recommendations on key means to simplify and improve the customer journey through data and collaboration.

To offer contextual and individualized experiences, companies need to apply data insights. When surveyed, however, Forrester found that:

  • Less than 50 percent of participating companies felt their current processes were very effective
  • 50 percent of respondents don’t have sophisticated analytics and 52 percent say internal data is fragmented and disparate
  • Nearly half of respondents are collecting external data, but not using it

While companies have the right ambitions to deliver these individualized experiences, they do not have the right tools and partners to execute and gain insights from their data.

The study also discusses how partners can transform and augment a company’s ability to deliver richer customer experiences and how it is no longer necessary for companies to own the entire value chain. Instead, companies can partner with 3rd parties to drive data insights and co-create new customer experiences with APIs (application programming interface). The study highlights:

  • 72% of participating companies are looking for outside help with transforming customer insights into CX improvements, with the majority of them interested in doing so via APIs and other solutions.
  • Over half of respondents want to co-create new experiences via APIs and partnerships

APIs can enable companies to go to market faster, leverage data in new ways, and access 3rd party data. Through our Visa Developer Platform, we are able to work through challenges and help provide solutions that can change the commerce journey. For instance, in the Asia Pacific region, Pulse iD integrates with Visa APIs to offer geo-fenced targeting campaigns to issuing banks. These campaigns enable issuers to send push offer notifications to cardholders, through the bank app, when the cardholder enters participating stores—creating a personalized journey. Several issuers around the world are also using travel data and Visa APIs to prevent false declines, and providing data to cardholders such as foreign exchange rates to ease travel commerce experiences. 

See how CIBC did this here:
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1IBM. “2013 IBM Annual Report”
2”Deliver the Commerce Experiences Of Tomorrow,” a January 2018 commissioned study conducted by Forrester Consulting on behalf of Visa

Tag: Digital commerce