Black Friday was a success for many retailers, starting the 2011 holiday season off with a bang. At Seamless Receipts, we are always looking to glean insights about consumer purchasing behavior. We saw some interesting trends this year, especially when looking at the differences in behavior based on a user’s choice of mobile device, email provider, credit card, or web browser.
Below is an infographic from one of our reports. Feel free to contact us if you’d like to learn more.
*Disclaimer: Information in this report is based on data from Seamless Receipts, Inc. clients and may not reflect total retail shopping behavior. Information is gathered in an aggregate and anonymous form so that no personally identifiable information is present. There are mobile devices, credit cards, email domains, and browsers that we did not to display if occurrences were not frequent enough to be significant.
This post is the second part of a series that describes how IT, Marketing, and Retail Operations can make an eReceipt solution most effective. In working with retailers, we have found the below three recommendations to be most relevant to the Marketing group.
The world of retail is changing faster than it ever has before. Nobody had heard of flash sales, group buying, or NFC three years ago. One of the most exciting changes will be the adoption of mobile payments and eReceipts, which will combine to provide a paperless way to checkout and manage your expenses. But when mobile payments and eReceipts become widespread, who will own your purchase data and how will they use it? Here are some key points to consider.
We are in uncharted territory
Online advertising, email marketing, and eCommerce have become mature technologies with standard privacy practices (see the CAN-SPAM Act of 2003). Retargeting has recently thrown a small wrench in the system, but most people have accepted targeted ads on the web as routine and non-invasive. If I view Sneakers on Nike’s website and later get a Nike ad on espn.com, that’s not a big intrusion. However, digitally tracking purchases that are made in the physical world has a very different feel to it. Nobody wants to read the morning news and get targeted ads based on their recent pharmacy purchase. So how do consumers know what mobile payments and eReceipts actually mean to their privacy? The experience of getting an eReceipt instead of a paper receipt is new to everybody. Retailers, tech companies, and consumers are collectively learning how to implement a solution that works well for all parties. It is important to realize that these processes and technologies have not existed before and there will be road bumps (like Facebook’s beacon disaster), but ultimately it comes down to trust. People trust Apple so everybody loves when the Apple store provides eReceipts at checkout. Likewise, other top retailers are focusing on privacy and consumer trust when rolling out their digital solutions. Earning that trust first is what will ultimately make the technologies successful.
Technology moves faster than regulation
Government regulation will always be a step behind. The CAN-SPAM act came in 2003 even though spam and email marketing started long before that. Technology constantly creates dynamics that never existed before and governments have to play catch up. California’s recent law that prohibits brick-and-mortar retailers from collecting zip codes is a great example. Retailers are quickly adjusting and preparing for what comes next. When it comes to privacy and trust, you want to do the right thing for your customer and not push legal boundaries. Ethics and consumer privacy should be the driving force, not antiquated laws that didn’t predict a future where consumers pay with their phones while checking into Foursquare, claiming loyalty points, posting on Facebook, and Tweeting about their purchase. Who owns that data?
There is a fierce battle for the consumer
Retailers want to own the consumer. Mobile wallet providers (Google, PayPal, etc.) want to own the consumer. Wireless providers want to own the consumer. Everybody wants to own the consumer. The companies that maintain direct interaction with customers and get their explicit consent to a privacy policy will be in a strong position. Somebody will ultimately break down the business and cultural barriers required to digitally manage ALL of your purchases. We are still years from that happening, but the value is incredible and a mobile payments war has begun. The investment required to play on this turf is significant, so the ultimate winner will be a big player with a large consumer presence. En route to that outcome, consumers should read the privacy policies that come with new products. Consumers will ultimately decide which payments and eReceipt platforms are successful and therefore will choose their own destiny regarding security and privacy.
Transparency is the key to trust
The Internet and social media have brought an unparalleled level of transparency to the business world. People will find the truth whether you like it or not, so the best companies are embracing transparency and being open about their business practices, their values, and even their mistakes. If you tell people exactly what you are doing and why, you may not always be right, but nobody will doubt that your statements are true. This provides room for honest errors because you can own up to them, improve and move on. The days of old boys clubs that dominate business based on their exclusive access to people and information are waning. Information is open and you can either run from it or embrace it. Businesses that embrace it and provide transparency to their customers will be the ones who are ultimately successful. If you want to know what somebody is doing with your data from mobile payments or eReceipts, then simply ask. If you get a clear, consistent, human answer, that’s a good sign. If you get a fuzzy answer or messages are mixed behind cryptic legalese, maybe you should think twice. Transparency leads to trust and trust leads to long-term loyal customers.
Customer experience trumps all
At Seamless Receipts, we work with a variety of high-end retailers and brands. The most successful ones think about customer experience first and view it in an all-encompassing way. When a customer visits your website, walks into your store, makes a purchase, gets an eReceipt, or talks about your brand on Facebook, these are all touch points in an ongoing customer experience. Your brand is represented by every step along the way and doing the right thing for your customer is doing the right thing for your business. When it comes to mobile payments and eReceipts, providing a convenient and simple solution is part of the customer experience. Retailers should create an operational flow that makes sense for the sales associate and the customer. Retailers should also send a clear message about privacy and data usage. Every sales associate should give the same, simple answer when asked.
Launching eReceipts often involves coordination between IT, Marketing, and Retail Operations. This post is the first part of a series that describes how each of the three organizations can make an eReceipt solution most effective. In working with retailers, we have found the below recommendations to be most relevant to the Retail Operations group.
1. Tell your customers a consistent message
It is important that your customers understand what you plan to do with the email address that they provide for an eReceipt. Whether you intend to use the provided email for an eReceipt only, or to send additional communications, your cashiers and sales associates should know your policy when communicating with your customers. Distributing an eReceipts one page FAQ guide to your sales associates has proven to be an effective technique to drive consistency. Another effective method is to leave small ‘post cards’ by the point of sale, letting customers know that they can now request eReceipts.
2. Going ‘green’ is up to your customers, not you
Many retailers like eReceipts for the ‘green’ aspect. A ‘paperless world’ is our vision as well, and there are several things you can do to move closer to that goal. Most consumers are still not ready to walk out of the store without a receipt, and offering your customers an eReceipt in addition to the paper receipt is the best path to going ‘green’. Once customers are used to the experience, they frequently will not request a paper copy. If the technology allows, deliver the eReceipt in real time (while the customer is still at the store) to enhance the eReceipt experience.
3. Make it easy for your cashiers and sales associates
Cashiers and sales associates are ultimately the ones that make the eReceipt concept work, so make their job easier. Decrease the amount of screens they have to visit on the Point of Sale system by bringing the email fields to the main screen. If possible, have a popup that comes up at the end of the transaction to collect the customer’s email. Make the popup simple, with huge fonts, and specific instructions to reinforce training. Perform email validation to discover any typos and reward cashiers with high eReceipt counts and accurate emails.
Seamless Receipts recently presented at the L2 Emerging Platforms Clinic in NYC. The clinic provided a forum to discuss social media platforms, their role in the marketplace and how retailers can navigate the various opportunities. We noticed three major themes:
1. Customer engagement is about connecting offline and online experiences
The major challenge for brands today is connecting the in-store experience to a profitable and dynamic online relationship. Bridging the gap between offline and online was a continued theme and Seamless Receipts discussed several ways retailers can use eReceipts to achieve success. By emailing the receipt for an in-store purchase, the customer experience gets immediately transferred to the web. The Seamless Receipts solution enables customers to instantly share their purchase, “like” the retailer on Facebook, shop online, or provide feedback. eReceipts create a seamless link between the customer’s in-store experience and the retailer’s online presence.
2. Facebook is top priority
Facebook remains the focal point for social networking and branding. The personal relationship users have with their Facebook community makes it the most valuable place to engage customers. Facebook is reported to represent 10% of Internet traffic and Seamless Receipts is seeing Facebook buttons get higher click-through-rates on eReceipts than any other promotions.
3. With so many options, picking the right platforms is difficult
Social media is competitive and constantly changing. This presents a variety of challenges and opportunities to brands. Which platform will provide the best return on investment? How do we know what customers really want? At Seamless Receipts, we use eReceipts to help answer these questions. An eReceipt provides the customer with the ability to interact with the brand on the platform of their choice, be it Twitter, Facebook, YouTube, or others. We track real-time engagement and user activity so that brands can easily make decisions about where to focus. eReceipts also provide the opportunity to effectively segment customers based on purchases, interests, and level of interaction. Engaging in-store customers after a purchase is critical and Seamless Receipts is excited to help retailers make the most of that opportunity.
Seamless Receipts Press Release: February 11, 2011
Seamless Receipts, a marketing platform for retailers to deliver eReceipts and personalized communications to their customers, has raised its second round of venture funding. Investors include DFJ Gotham, Polaris Venture Partners, GRP Partners, Tekton Ventures, Social Leverage, David Shen Ventures, David Cohen, and other individuals. Seamless Receipts is based in New York City and will use the funding to grow sales and accelerate product development.
The Seamless Receipts solution replaces paper receipts with branded eReceipts and allows retailers to deliver personalized marketing messages to customers. With Seamless Receipts, stores can provide a great customer experience, drive offline customers online, and engage customers after they leave the store.
Retailers are finding that consumers quickly embrace eReceipts and respond well to personalized promotions. Seamless Receipts sees a future where eReceipts replace paper receipts completely. “Consumers love getting eReceipts,” says Keith Cowing, Seamless Receipts’ CEO, “and we are leveraging that shopping experience to help retailers personalize their interactions with customers.”
Danny Schultz of DFJ Gotham expresses enthusiasm as well: “We’re very excited about Seamless Receipts. Since we seeded them two years ago, they have successfully launched what was then just a vision. The timing is right, the market response has been excellent, and they’ve brought in great new partners in Polaris, GRP and the other new investors.”
About DFJ Gotham Ventures
DFJ Gotham Ventures is an early-stage venture capital firm based in New York City focused primarily on investments in information technology startups based in the Northeast U.S. and Israel. DFJ Gotham partners with extraordinary teams of entrepreneurs to build strong and successful businesses. DFJ Gotham is part of the Draper Fisher Jurvetson Global Network, the largest venture capital network in the world.
About Polaris Venture Partners
Polaris invests in seed, early stage, and middle market companies in high growth industries. As the lead or co-lead investor, they take an active and long term role in helping management teams build highly successful businesses. Polaris has over $3 billion under management and current investments in over 90 companies.
About GRP Partners
Since 1982, the partners of GRP have invested in some of the leading global brands including Costco, Starbucks, Overture, and Bill Me Later. GRP Partners manages over $1 billion on behalf of more than 150 limited partners in North America and Europe. With professionals in Los Angeles and London, GRP has a global perspective when serving portfolio companies and seeking investment opportunities.
Seamless Receipts is proud to announce its partnership with Canadian Retail Solutions (CRS): http://www.prleap.com/pr/164222/
“Canadian Retail Solutions (CRS) specializes in Point of Sale (POS) Systems for small to mid-sized Canadian merchants operating in multi-store environments. On August 23, 2010, Seamless Receipt announced their integration with Retail Pro and have already seen a significant response from the Retail Pro user community. With the quick installation of a simple plug-in, Retail Pro users can instantly access Seamless Receipts web service and begin issuing email receipts to their customers. Already live in 22+ stores in Canada, this plug-in makes Retail Pro integrated with Seamless Receipts an “off the shelf” product for Canadian retailers that can be efficiently rolled out in a retail environment in preparation for the busy holiday shopping season.”
Seamless Receipts and Fitzgerald Analytics have partnered to create data-driven analytic services for retailer operations. FA’s Analytic services, combined with Seamless Receipts technology, create opportunities for retailers to turn ‘data into dollars’.
Seamless Receipts works with a variety of retailers and helps them email receipts to their customers directly from the point-of-sale. In addition to digitizing receipts, some retailers use our Email Receipts product to extract transactional data that is ‘trapped’ inside their POS. Once this data has been extracted, it can be used in a variety of ways.
Retailers use this capability as a better alternative to implementing a traditional loyalty card program, where the shopper’s email is used to track, reward, and encourage repeat purchases. Email Receipts can also be used to enhance existing loyalty programs, offering card holders the added convenience of automatically getting their receipt as an email. When given the option, 25-50% of shoppers choose email receipts, which gives retailers the ability to engage these customers in new ways.
Many retailers have also expressed interest in going one step further to analyze their data. Seamless Receipts works with Fitzgerald Analytics to maximize profits retailers generate by using Email Receipts. In collaboration with Seamless Receipts, FA has created a series of high-impact, pre-built models which use shopper data to improve marketing decisions and sales results. These models allow retailers to efficiently benefit from:
If you are interested in learning more about Email Receipts, please visit our Products page and take a look at our demo.
Let’s face it. Paper receipts are horrible. They mess up expense reports, disappear when we need them, fill our pockets with clutter, and generate tons of waste. Worry no longer. Seamless Receipts is leading the movement to a world of digital receipts. We have several solutions running with retailers now and have exciting new products on the way. We get lots of feedback about how we can make your life easier. So we created the Seamless Receipts Facebook page to consolidate people’s thoughts and conversations.
We’re approaching our initial launch goal of 100 stores and will be in dozens more next year. Stay tuned to hear about exciting new products. We will change the way you think about receipts. In the meantime, let us know how digital receipts can help you and send us your creative ideas. Join the conversation.
