My mission at Forrester is to help ebusiness executives transform the role of payments from financial utility into an engine for customer engagement, revenue growth and improved customer experience.
A barrage of new innovation and business models are upending how consumers and businesses make and receive payments. If merchants and businesses do not consider or implement these new innovations they risk losing customers and ultimately relevancy.
Customer obsessed businesses can turn payments disruption into business advantage. Success hinges on making technological and organizational shifts that turn the view of payments from customer transactions to an engine for customer growth.
Businesses must consider the following challenges if they want to turn payments into customer advantage:
Embrace mobile and emerging payments
Gain more customer relevancy through collected payment data
Provide new tailored customer experiences and services based at point of purchase
Reduce risk and secure the shopping experience from data compromise and fraud
Leverage payments for operational advantages
My role will be focused on how to make payments more operative and strategic through the lens of “Transforming the Customer Experience,” “Accelerating Your Digital Business,” “Embracing the Mobile Mind shift,” “Turning Data into Customer Insights.” I look forward to expanding the aperture of these topics and working with you to transform the role of payments in your organization.
Consumer usage of alternative payment methods like contactless cards or mobile payments is still very limited in Europe, and the majority of European consumers aren’t interested in using these services (yet). But attitudes vary across Europe. In the UK, where consumers are more familiar with the concept thanks to public transport schemes like London’s Oyster card, about 4% of the population use contactless payment cards, and a further 22% are interested in using one. In Spain and Italy, a third of consumers show interest in such a payment system.
But security concerns and a lack of need are holding consumers back. While early adopters will more likely overcome them, these concerns represent a serious barrier to mainstream adoption.
Consumers have little motivation to adopt a new payment solution if it is purely a one-for-one replacement. Digital wallets must instead increase the value of the transaction for both consumers and merchants. Winning solutions will bring this to life through greater convenience, contextual relevance, and a compelling purchase experience.
Over the summer, I asked you all whether we are finally headed toward a cashless society. Since then the battle for the digital wallet has certainly heated up. Well today, I am thrilled to announce the newest addition to Forrester's Consumer Product Strategy practice. Her name is Denée Carrington, and she will be joining us as a Senior Analyst, covering consumer payments, starting January 3, 2012.
To provide more specifics, here's a sneak peek at some of the coverage areas where Denée will be able to help Forrester clients with consumer payment strategy in the new year:
Defining the future of consumer payments
Managing a portfolio of payment products (e.g. credit, debit, prepaid, contactless, mobile, person-to-person (P2P), etc.)
The business models and profitability of these payment systems
Understanding the dynamics of customer (consumer and merchant) payment behavior
Understanding the payments needs of different markets
Sizing the different payments market opportunities
Driving customer (consumer and merchant) adoption of payments systems
Building and developing new payment systems
Optimizing existing payment products to improve security and increase convenience
These are exciting—and challenging—times for anyone who is responsible for developing, managing, and innovating consumer products. Why? Because digital technology is disrupting everything—the way we communicate with each other; the way we access, store, and share information; the way we purchase and interact with the products and services we use every day; and yes—even the way in which we actually pay for those products and services. Whether you like it or not, digital disruption is happening everywhere, it’s happening fast, and it’s accelerating.