Proper use of data is important to offer better and more personalized experiences to the consumers. Based on this data, Walter Lironi, Senior VP and Head of Visa Consulting and Analytics CEMEA at Visa spoke at the 8th RLC MENA Summit that took place in Riyadh, about the new reality that the pandemic brought as well as the changes in consumer behaviors that are expected to stay and should be taken into account while looking at the future.
Consumers are becoming more demanding
According to Mr. Lironi, there is a 30% probability of losing a customer at any single touchpoint if it doesn’t work properly, while 86% of buyers are willing to pay more for a better customer experience. As he characteristically said, “if we look at Gen Z, they are much more willing to pay a premium for mobile experiences, for having fun in the interaction with the brand, for the company loyalty, and for having a brand that they can really trust.”
Loyalty is about the ecosystem, new services, and leveraging data
Customers demand efficiency, and convenience, but also a friendly service. They talk about up-to-date technology, but also human interaction. Regarding that, Mr. Lironi added “We are operating in an ecosystem that is becoming more and more competitive. While we maximize the value of today’s business, we need to think about longer-term and be open and ready to engage with customers in new ways. The new front line is about efficiency, automation, and a new meaningful role for the store.”
We need to think about longer term and be open and ready to engage with customers in new ways. The new front line is about efficiency, automation and a new meaningful role for the store.
Metaverse: a virtual world with a real digital economy
As for the buzzword metaverse, he noticed that you can actually buy things, you can sell things, and even malls are being built in this virtual world. A new frontier that you should consider is crypto as it is a key enabler of this nice concept of metaverse. Thinking about your capability of attracting digitally savvy Gen Z type of clients going forward, this is definitely something you should consider as a competitive advantage.
Diversified payment options
Buy now, pay later is a fast-moving trend, and Mr. Lironi revealed that there is more than 20% growth in the merchants accepting the buy now, pay later solution. More than 90% of card payments now are contactless. At the same time, there is a reduction in the interest of paying with cash.
Building sustainable business models for our consumers
Concluding his session “Maximizing the Known Navigating the New”, he highlighted: “We run the risk of creating too much indebtedness for our consumers. And I believe many regulators in multiple jurisdictions are working to make sure that consumer protection remains at the top of priorities for all companies.”