As well as streamlining transactions, emerging smart payments platforms and connected technologies will generate massive amounts of data that businesses can use to personalise customer relationships.
This data, generated by an increasing number of networked devices dubbed the Internet of Things (IoT), will allow businesses to identify customers well before the point of purchase and give them the opportunity to make personalised offers.
Examples include in-store wireless networks that can track customer movements via their mobile phones, in-car modules that monitor driver behaviour, and in-home sensors that provide insights into power consumption patterns. Armed with the data generated by these devices, businesses will be able to customise marketing campaigns at an individual level.
According to the Commonwealth Bank of Australia 'The Future of Payments', 83 per cent of retailers feel a lack of quality data is proving a barrier to personalisation. At the same time, 74 per cent of retailers surveyed confirm personalisation is important to their future strategies.
Customer insights become even more valuable when collected information is combined with data from other sources. Past purchase histories and demographic data can be used to create a rich profile of each customer, further enhancing the ability to provide relevant targeted messages.
For example, a retailer will be able to see that a customer has visited a store on previous occasions, spent time in a particular department but then left without making a purchase. The next time that customer visits, the retailer could make a personalised discount offer designed to encourage a sale.
Demographic data can provide insights into the likelihood a customer who has purchased one item will also purchase a related product. A real-time personalised discount coupon could be sent to their mobile device.
This new level of digital interconnectedness, supported by the IoT and smart payment platforms, will assist businesses across many sectors.
A study by Britain-based research company Kantar highlighted how smart electricity meters can be used to send personalised messages to customers in real time. By monitoring the electronic signatures of different types of washing machines, electricity companies can determine the wash cycle being used and alert consumers if a more power saving option is available.
According to the CBA white paper 'The Future of Payments', other examples include how health insurance companies could offer real-time discounts to customers who regularly exercise, based on data collected from their wearable devices.
In the agricultural sector, drones and other devices can be used to collect information about soil conditions and crop health. Combined with data on customer demand in supermarkets, this can help farmers decide where to focus their efforts for maximum returns.
"By combining technology with creativity, organisations can overcome pain points and deliver more meaningful interactions based on a deeper understanding of the individual customer and their needs," says the discussion paper. "Platform-based integration and secure information sharing will be critical to success."
To see more on the future of smart payment technologies, please read this report from the CBA :
