Going digital is not an option anymore, even if it is the kirana store around the corner. Many merchants have taken baby steps towards “digital” but there is a lot more that can be done to help build a seamless merchant experience.
Let us understand the various components of a merchant and then dive deep into how "digital" can help in each one of those.
1. Customer Experience
3. Supply Chain
5. Store Management
6. Human Resource Management
This has become the biggest differentiator when it comes to a good store and a great store. Imagine if you walked into a store and if the store could somehow figure out that you are a loyal customer and offer you rewards, treat you differently from other customers, how would you feel. Intelligent stores are coming up everywhere to offer customers a differentiated experience. To make this happen, the store would need a simple system that captures basic customer data such as a customer identifier and start recording their purchases.
The same system can be used to:
1. Reward customers.
2. Communicate new product launches and offers to customers.
3. Handle service issues.
4. Enable online ordering.
Payments are an important component of going digital. Managing cash has become very difficult as costs of handling it, storing it, associated insurance cost and push from customers is pushing them to go digital. Aggressive cashback schemes and reward points from Wallets and card companies is incentivizing customers to transact. Merchants are finding digital payments, an option that they cannot refuse for they risk loss of business.
Innovations such as EMI on cards, Cardless EMI etc is also helping merchants convert a large number of prospects into paying customers, thereby increasing their sales and their reach as well.
Merchants must watch out for the following problems:
1. Reconciling with multiple payment options.
2. Varied settlement cycles with various
3. Various fraud policies
4. Inconsistent customer support
Merchants would benefit tremendously if they choose a payments partner that manages the turbulence in the payment industry for them and can seamlessly integrate with other systems.