We’ve long known that one-size-fits-all doesn’t apply when it comes to small to medium-sized business merchants. As we lay the foundation for next-gen acquiring and help you tailor solution to your merchants, it is forever important to understand small to medium-sized merchants in the U.S. Our U.S. expert Victor Fenix, Business Development Director, Americas, will host a webinar (Register here) to dive into key facts uncovered in the Retail Innovation Readiness Index Report, published by PYMNTS and AEVI.
How did we deepen our understanding?
To this end we commissioned PYMNTS to carry out a series of research on our behalf. The objective was to provide current insight on new merchants’ needs in the U.S., and assess the gap between what merchant acquirers, ISOs and VARs currently offer to merchants versus what they actually need and want. From this research, we produced four reports looking at four different sectors and multiple merchant types:
PYMNTS conducted a survey, and gained around 400 responses back per report. We drilled down the sample to isolate: small and medium-sized merchants, with a physical location, with a turnover of less than $100 million.
We asked questions which looked at their readiness for innovation, their motivations for upgrading/innovating their systems, their primary needs both front of house and back of house, and their awareness of smart POS.
Maintaining a complex payment infrastructure, upgrading and recertifying devices, and working on customer retention creates a minefield of challenges. The competition for merchant loyalty is fierce, with new entrants benefiting from the flexibility of not having to support legacy devices.
What are the results?
In the retail space competition drives innovation – more than 80% of small businesses believe they need to innovate to stay competitive. For the majority of retailers, innovation is key to driving sales. 65.4 % of retailers innovate to improve customer loyalty. Health and Beauty merchants placed greater importance on improving customers’ in-store shopping experiences.
Accommodation merchants consider customer loyalty and business analytics improvements, while those for Food more commonly see innovation as a way to boost sales and revenues. Food and accommodation merchants have expressed less interest in adopting smart POS systems than health and beauty companies, but a significant share were still looking for new opportunities to remain competitive and boost sales.
Consumer service merchants lag behind other industries where innovation is concerned. They focus on excellent work execution and building personal relationships to their customers rather than concentrating on new technologies.
Whilst the health and beauty merchants scored most highly when comparing the four sectors readiness for innovation, all four surveys revealed many of these small medium business merchants recognize the value in innovative solutions like smart point-of-sale systems to help them serve their customers better. It gives an indication of the features and value-added services they are likely to be seeking in the future.
Join us for the Webinar
The reports shaded some light on the similarities and differences for each sector valuable for any merchant payment solution providers. We will be hosting a webinar on Thursday October 17th, so that merchant acquirers, ISO’s, VAR’s and the whole industry can benefit from our findings, and together we can we step into next-generation acquiring.
Join us as we delve deeper into our findings, analyzing the results as we provide our advice and guidance as you can best serve and develop services to meet the needs of the modern merchants and their constantly developing in-store environment.