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Usage of credit cards are mostly seen at department stores, more over card campaings and loyalty programs surround consumers to supersede cash payments and the competition between merchants and credit card companies encourages consumers to use credit cards
more. In this situation what will be the advantages of contactless cards. Speed? No, the average purchase amount is higher than 35-USD, the speed of contactless will not gain advantage to the consumers. But what about loyalty programs? I expect more interactive
merchant and credit cards campaigns will be delivered near future.
Suppose that a consumer enters a department store or has already entered and shopping. Imagine the advantages of offering personalized campaigns to push them buy specific products or extend purchase to targetted amount. I think it is quite easy to equip
the stores with interactive kiosk to make the consumers to tap their credit cards and see the special offer and the conditions to get the offer. Will it Work? As far as a see the kiosks at the shopping malls which are used for price check, product info, loyalty
program info do not work much. Is this conflicting with the thing I mentioned? If you do not surround with beneficial promotions, then Yea. But if merchants and the credit card companies some how provides more beneficial promotions to the consumers, than Nay.
I specifically advising for the department store businesses. For card companies; they need to enchance partnerships with the merchants to be able to run cross campaigns. Campaing servers and kiosks should be set at department stores and both parties should
be able to design campaigns to the consumers. And for the merchants; new business arrives. The competition between vendors is tremendous. Several ads and campaigns are served to consumers to make them choose their products. With the new kiosk technology, merchants
shoud be able to make the infrastructure to be used by vendors so that vendors will be able to make direct compaigns.
I won't go on with business cases, there will be several. What I say is, kiosks at the stores should be useful if they provide beficial offers and contactless cards would be preferrable if they are used for check-in or enrollment to those campaigns. Then
the new shopping concept that arrives is "interact with the consumers before they do the shopping"
19 Mar 2009
This post is from a series of posts in the group:
A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.