How Order Management Systems Can Streamline eCommerce

Posted on by Jennifer Ryan
BORN Views
How Order Management Systems Can Streamline eCommerce

The Covid-19 pandemic has irrevocably changed eCommerce. By April 2020, the industry experienced ten years’ worth of growth in three months resulting from a shift in consumer spending habits.1 The unprecedented demand for online goods stressed supply chains and forced retailers to reevaluate their operations. As the online shopping trend continues, competition among online retailers has never been greater.

Brands must be resilient and agile to compete against retail giants like Amazon. To offset the difficulties caused by an online-only ecosystem, retailers must find new sales channels and marketplaces to broaden their reach. However, a larger digital footprint and increased sales channels result in a complexity that can be overwhelming when combined with already steep customer expectations.1 An order management system (OMS) is essential for a business to grow, embrace multi-channel retail, and compete with other online retailers while communicating effectively with customers.

What is an Order Management System?

An OMS is software that enables an eCommerce store to manage the order fulfillment process more effectively. It collects data such as order information, customer data, and inventory levels which allows for the management of critical business areas.2 An OMS streamlines the process by unifying data and making the fulfillment process as cost-effective and automated as possible. OMS systems allow operators to manage orders coming in from multiple sales channels and process them from multiple fulfillment points.2 An effective OMS can help with various processes and tasks to ensure a business stays in sync and fulfills its promises to its customers. 

Key Benefits of Using an OMS

OMS tools are critical because they are more than just a means for shipping orders. Most eCommerce brands cannot grow without an effective OMS in place.3 These tools keep critical business processes organized and running smoothly as a business grows. Having a good OMS in place will also reduce human error, an enormous time and money waster for businesses. Reducing manual tasks will create time for solving complex customer problems, focusing on big picture projects, and optimizing the brand experience.4 An effective OMS is essential for sustainable growth and a smooth customer experience. 

Customer Satisfaction

Customers have grown accustomed to personalized, efficient, and cost-effective order fulfillment. As a brand grows, systems will be tested, and inefficient processes can result in negative customer experiences and potentially lost profits.5 Since order management systems are automated and integrated across every step, brands can ensure a consistent customer experience across every channel. From logging orders to organizing fulfillment to managing invoices and returns, an effective OMS covers each step of the order process.6 The goal of the OMS is to get the product to the consumer as efficiently as possible. This is accomplished by managing the journey of each item in the customer’s order from the moment the product goes into the shopping cart until the product arrives on the customer’s doorstep.7 A good OMS will integrate with fulfillment centers to keep customers updated on the status of their orders.8 By optimizing each step in the process, an OMS reduces shipping and overhead costs and increases the quality of data collected. 

Managing Product Availability and Inventory Insights

Selling products across multiple platforms can make it difficult to unify sales data. An OMS can integrate with each platform, collect all sales data, and bring that information together in one accurate and accessible place. Over time, this can provide insights into customer behavior and identify popular products and SKUs.9 Based on the collected data, inventory management decisions like what to order from suppliers and which fulfillment locations need new stock are simplified. 

Other Considerations

The eCommerce landscape changes rapidly, so a good OMS should provide the flexibility and functionality necessary for a business to grow. It should be intuitive and easy to use by non-technical retail and marketing staff and integrate with existing company technology and infrastructure. Opening new fulfillment options, changing promotions and pricing, and setting up workflows should be straightforward.10 The ideal OMS will fit seamlessly with the eCommerce system to enhance customer experience and meet business sales goals. 

Order Management Systems are the way of the future in the eCommerce world. This innovative software can simplify and streamline every system and process within the supply chain by reducing human error, enhancing delivery speed, simplifying multi-sales management, and forecasting future trends. In the competitive world of online retail, an OMS that optimizes the speed and accuracy of order processing across channels can positively affect the customer experience and give your business an edge over competitors. A seamless order fulfillment process provides an opportunity to enhance brand reputation, provide a positive customer experience, and grow revenue.11 Adopting modern, integrated OMS software is the only way for businesses to keep up with the competition and customer expectations by streamlining the entire virtual business process.

Footnotes

1)https://www.bigcommerce.com/blog/order-management/#what-is-ecommerce-order-management

2)https://richpanel.com/blog/order-management-system/

3)https://www.bigcommerce.com/blog/order-management/#what-is-ecommerce-order-management

4)https://kibocommerce.com/blog/order-management-system/

5)https://www.bigcommerce.com/blog/order-management/#what-is-ecommerce-order-management

6)https://paperform.co/blog/order-management/

7)https://www.bigcommerce.com/blog/order-management/#what-is-ecommerce-order-management

8)https://www.brightpearl.com/ecommerce-order-management

9)https://www.shopify.com/enterprise/order-management-system-oms

10)https://www.smartsheet.com/content/order-management

11)https://paperform.co/blog/order-management/

What’s Causing The Supply Chain Breakdown And Why eCommerce Should Care

Posted on by Jennifer Ryan
BORN Views
What’s Causing The Supply Chain Breakdown And Why eCommerce Should Care

Supply chain disruptions are causing price increases and a growing shortage of goods as the global economy attempts to deal with the ongoing Coronavirus pandemic. Retailers must navigate an unprecedented set of challenges as they contend with delays, stock issues, and customer expectations.1 As lockdowns lift, extraordinary demand for goods has outpaced supply. Consumers are ready to spend money they saved during 2020 and 2021 and are accustomed to readily available goods and nearly instant gratification.2 Unfortunately, the global supply chain bottleneck has resulted in record shortages of once easily accessible products, such as household items, electronics, and automobiles. 

What Caused The Supply Chain Crisis?

The pandemic disrupted nearly every aspect of the global supply chain. It placed enormous strain on the usually invisible manufacturing, transportation, and logistics pathway that delivers goods where needed. The supply chain bottleneck led to PPE shortages such as N95 respirators, gloves, cleaning supplies, and other critical care items needed in medical settings, which threatened our ability to fight the COVID-19 threat.3 The supply chain is like an ecosystem with each part playing an essential role and one unfortunate event can result in repercussions downstream. As the world closed down in response to COVID-19, consumers discovered the safest way to buy products was through eCommerce retailers. Skyrocketing demand for products combined with limited supply led to unprecedented delays worldwide.4 The shipping industry did not have the technology or processing ability to cope with the extreme shift in consumer behavior, and items became backlogged. The disruptions stemming from the pandemic combined with economic issues, such as energy shortages, production shortages and issues at key shipping ports have all contributed to the supply chain problems eCommerce businesses face today.

Chip Shortages

COVID-19 mitigation strategies reduced the production of goods and services as many factories entered lockdowns. Workplace shutdowns in chip manufacturing companies in countries like China, Japan, Taiwan, Vietnam, and South Korea have resulted in a global shortage. This shortage affects the production of electronics like laptops, phones and webcams, appliances, and new cars in which chips are vital components.5 Currently, production of these items remains severely limited, while demand remains high.  

Labor Shortages

Much of the world is facing labor shortages. As companies struggle to find workers for their warehouses, production has struggled to keep up with demand. In August 2021, 4.3 million Americans quit their jobs, and the warehouse industry recorded 490,000 job openings.6 The labor shortage forces companies to go to great lengths to attract workers. Companies are increasing wages to keep up with rising prices, and in some cases offering incentives like free college tuition. Even with these attractive incentives, many potential workers have difficulty reconfiguring their post-covid work futures and are reluctant to return to work as the risk of COVID-19 infection persists.

The Energy Crisis

In countries with manufacturing economies, energy shortages and power cuts have forced productivity to slow in factories, threatening already stressed supply chains. Natural gas supply has failed to meet post-pandemic demand as the energy sector has recovered more quickly than anticipated following a year of reduced coal, oil, and gas extraction.7 Over 20 Chinese provinces are rationing electricity to meet energy efficiency and pollution reductions targets.8 However, there is insufficient renewable energy to replace natural gas, and a coal shortage worsens matters. Global prices for goods and resources produced in China, such as steel and aluminum, will significantly increase if factories contend with widespread power shortages. 

Transportation and Logistics Challenges

A global shipping problem is compounding the supply chain crisis by making it difficult for sellers to obtain needed goods, even if they are available. Transportation bottlenecks at ports such as Los Angeles, Long Beach, and Oakland have increased wait times for ships to unload cargo.9 A robust trade of goods strained the available supply of shipping containers, ships, and port operations worldwide. 

When the pandemic halted international trade in April 2020, empty containers were no longer collected and redirected for reuse. Over a year later, shipping companies are still trying to get containers to ports where they are needed most. In response, the cost to ship items has risen by 480%, which makes some international trade no longer profitable.10 To complicate matters, a shortage of dockworkers and truck drivers prevents goods from being offloaded and reaching their destination in a timely fashion.11 The lack of these critical components results in more scarcity in the supply chain, leading to even more shortages and price increases. 

What eCommerce Retailers can do to Mitigate the Impact of the Supply Chain Crisis?

The global supply chain is a fragile and highly interconnected ecosystem. When unprecedented issues occur, they produce a ripple effect that eCommerce retailers can feel on the other side of the world. Businesses will need to be proactive in their approach to managing these effects. Optimizing operational performance and prioritizing efficiency at every leg of the supply chain is essential to ensure the best use of existing capacity. Retailers should consider implementing productivity improvements such as redesigning warehouses and investing in lean operations to increase productivity and mitigate the risk of disruptions caused by labor shortages.12 It is imperative retailers understand precisely how their supply chain functions. It can be helpful to locate and work with alternative suppliers to ensure a steady flow of necessary parts and materials.13 It is tempting for retailers to concentrate the majority of their business with one supplier in pursuit of volume discounts, but fragmenting the supplier base can help to ease capacity constraints and create new opportunities for sourcing materials as demand for products continues to fluctuate. 

If a business can source more of their needs locally, that can also be helpful. Though adding new suppliers is not an easy solution and may result in a higher cost of sourcing materials, it can help a business mitigate risk and avoid disruptions to production.14 Additionally, eCommerce retailers should consider allowing double or triple the lead time for ordering stock due to potential shipping delays.15 It’s essential to stay ahead of seasonal curves when consumers are more inclined to make purchases. Finally, retailers should maintain customer expectations of quality while being honest with their customers and communicating any potential delays.16 Customer expectation management is critical when it comes to protecting brand reputation. 

1)https://abcnews.go.com/Politics/whats-causing-americas-massive-supply-chain-disruptions/story?id=80587129

2)https://cnet.com/features/you-shopped-like-never-before-the-supply-chain-couldnt-handle-it/

3)https://abcnews.go.com/Politics/whats-causing-americas-massive-supply-chain-disruptions/story?id=80587129

4)https://www.bloombergquint.com/gadfly/supply-chain-disruptions-almost-too-many-reasons-to-count

5)https://www.bloombergquint.com/gadfly/supply-chain-disruptions-almost-too-many-reasons-to-count

6)https://abcnews.go.com/Politics/whats-causing-americas-massive-supply-chain-disruptions/story?id=80587129

7)https://www.bloomberg.com/news/articles/2021-09-27/europe-s-energy-crisis-is-about-to-go-global-as-gas-prices-soar

8)https://blog.edesk.com/resources/us-supply-chain-crisis/

9)https://www.nytimes.com/2021/10/22/business/shortages-supply-chain.html

10)https://blog.edesk.com/resources/us-supply-chain-crisis/

11)https://info.waxie.com/blog/key-factors-responsible-for-supply-shortages-in-2021

12)https://www.mckinsey.com/industries/retail/our-insights/ten-steps-retailers-can-take-to-shock-proof-their-supply-chains

13)https://www.mckinsey.com/business-functions/operations/our-insights/risk-resilience-and-rebalancing-in-global-value-chains

14)https://blog.edesk.com/resources/us-supply-chain-crisis/

15)https://www.modernretail.co/startups/dtc-briefing-how-supply-chain-shortages-are-impacting-e-commerce-operations/

16)https://blog.edesk.com/resources/us-supply-chain-crisis/

17)https://blog.edesk.com/resources/us-supply-chain-crisis/

Why Retailers And Consumers Are Embracing The Buy Now, Pay Later Trend

Posted on by Jennifer Ryan
BORN Views
Why Retailers And Consumers Are Embracing The Buy Now, Pay Later Trend

As the popularity of online shopping continues, buy now, pay later (BNPL) platforms are becoming a popular way for businesses to offer their customers flexible payment options. Though larger companies traditionally used this service, BNPL is becoming increasingly popular with companies of all sizes.1 Providers like Klarna, Affirm, and Afterpay enable shoppers to purchase products online from participating merchants and pay for them through a series of installments, often interest-free.2 This app-based hybrid version of layaway and credit is growing in popularity with retailers and consumers alike as brands like Amazon, Walmart, and Target offer installment plans to increase sales.

Buy Now, Pay Later is Gaining Momentum 

The continued growth of online shopping resulting from the pandemic has catapulted BNPL into the mainstream. While BNPL was gaining popularity leading up to the pandemic, BNPL deals exploded when retailers were forced to close brick and mortar stores. Covid-19 produced a shift in consumer spending habits as an increased number of consumers spent more time at home and embraced e-commerce.3 BNPL generated almost $100 billion in transactions in 2020 as millions of shoppers financed their purchases.4 The pandemic left millions of consumers out of work and in need of greater flexibility with their purchases, which increased the demand for easy online financing options. Unlike credit cards which were intended to be used multiple times, BNPL solutions are applied to individual transactions, which appeals to consumers wanting to make less of a financial commitment.

Advantages for Consumers

Consumers are more likely to make significant purchases if they can pay for them in installments rather than the total price upfront. Popular among people under thirty with tight finances and less available credit, consumers welcomed the ability to delay payment for goods and access financing.5 Many consumers see BNPL as an appealing alternative to racking up another high credit card balance. BNPL services claim they are a better alternative to traditional banking and credit cards because it is easy for consumers to get approved for this type of loan, even with a low credit score.6 Provided consumers stick to the payment terms, BNPL offers the chance to pay in interest-free installments. Though BNLP offers many advantages to all parties involved, consumers should ensure they understand the repayment terms. Late payments have the potential to affect an individual’s credit score, and customers who default on their payments may be banned from future purchases.7 BNPL is a loan, and consumers should plan their purchases with their income and expected expenditure in mind. 

Advantages to eCommerce

Just as BNPL is a preferred payment method for many consumers, it can also be useful for businesses. By integrating BNPL, companies can attract new shoppers, improve customer relations, and increase sales. It is important to provide many different payment options to give customers their preferred choices and appeal to as many potential first-time shoppers as possible.8 Consumers increasingly utilize BNPL platforms, which means companies willing to work with BNPL providers will appeal to a new set of customers. Millennials and Gen Z are more likely to use BNPL platforms when shopping online than any other age group, so if a business is interested in attracting these age groups, they should strongly consider using a BNPL platform.9 Additionally, customers are more likely to return to a business that offers BNPL options, and with so many companies providing this service, it is essential to remain competitive. 

BNPL delivers a quick and straightforward payment process and is a viable alternative to traditional payment methods. BNPL platforms allow a business to get paid in full immediately, while the consumer has the instant gratification of receiving the product directly at a low upfront cost. In exchange for providing interest-free loans to customers, these platforms take only around 5%-6% of the purchase cost from retailers.10 If the customer does not make the payment on time or the payment is not collected, businesses do not have to worry about lost revenue. 

Why Buy now, pay later platforms can be a valuable tool for both businesses and consumers. The potential for BNPL platforms to drive sales and increase income with no risk to the company is an appealing prospect, and customer demand for this payment method is high. While consumers must be mindful of their purchases and not spend beyond their means, BNPL can be a great way to finance items if used responsibly. With research from Kaleido Intelligence estimating that online consumers will double the amount of money they spend using BNPL to $680 billion by 2025, there is a massive opportunity for businesses to profit.11 BNPL is here to stay for the foreseeable future.

Footnotes

1) https://www.paymentsjournal.com/buy-now-pay-later-what-businesses-need-to-know/

2)https://www.wsj.com/articles/when-to-buy-now-pay-later-and-when-to-just-pay-now-11631957401

3)https://www.cnbc.com/2021/09/21/how-buy-now-pay-later-became-a-100-billion-industry.html?utm_term=Autofeed&utm_medium=Social&utm_content=Tech&utm_source=Facebook#Echobox=1636972847

4)https://www.forbes.com/sites/ronshevlin/2021/09/07/buy-now-pay-later-the-new-payments-trend-generating-100-billion-in-sales/

5) https://www.paymentsjournal.com/buy-now-pay-later-what-businesses-need-to-know/

6)  https://www.investopedia.com/buy-now-pay-later-5182291

7)https://www.wsj.com/articles/when-to-buy-now-pay-later-and-when-to-just-pay-now-11631957401

8)https://www.paymentsjournal.com/buy-now-pay-later-what-businesses-need-to-know/

9)​​https://www.cnbc.com/2021/08/07/why-millennials-and-gen-zs-are-jumping-on-the-buy-now-pay-later-trend.html

10)https://gocardless.com/en-au/guides/posts/how-does-buy-now-pay-later-affect-your-business/

11)https://www.businesswire.com/news/home/20200922005066/en/Buy-Now-Pay-Later-Digital-Spend-Led-by-Klarna-PayPal-Afterpay-to-Double-by-2025-Reaching-680-Billion—Kaleido-Intelligence

Recommerce: Exploring Reselling Within eCommerce

Posted on by Antony
BORN Views
Recommerce: Exploring Reselling Within eCommerce

The resale market is getting a makeover. Companies are finding ways to take back used consumer goods and repurpose or resell them to interested customers. Recommerce refers to the buying and selling of previously owned items and is set to grow at a rate of 11x that of regular retail.1 Consumers are keen on the idea of recycling and repurposing and have been increasingly buying secondhand goods. In response, the number of online resellers has exploded to keep up with consumer demand for affordable and sustainable alternatives to buying new. While the concept of reselling goods is nothing new, the way that consumers and sellers are coming together is currently evolving.2 Recommerce platforms have enabled peer-to-peer transactions to increase. Even high-profile brands recognize the opportunity resale has to offer, and have created their own recommerce marketplaces. Recommerce is more than just a cost effective way to achieve sustainability; it is a business opportunity rooted in circular economic principles.

The World of Recommerce is Changing

Once confined to brick and mortar stores, sites like eBay and Etsy now provide a platform that allows buyers and sellers to purchase and sell items in a thrift-like marketplace. However, a plethora of online startup recommerce brands like Poshmark, Mercari, Tradesy, ThredUP, and The RealReal have allowed the industry to grow to new heights.3 While eBay and Etsy allowed for sellers to list just about anything for sale, these newer sites have boosted transactions by building online communities and using data to learn which brands are currently trending. Poshmark’s annual report revealed consumer buying habits depend greatly on generation. Baby Boomers favored well-known, higher-end brands, like Coach and Michael Kors, while Generation X preferred more mid-priced goods like Tory Burch, Kate Spade and Patagonia. Millennials are most likely to purchase goods from brands that would typically be found in an American mall, like Nike and Antrhopologie, and Gen Z purchased secondhand items from across the spectrum. Their top Poshmark brands are Gucci, Adidas, and Brandy Melville.4 

Recognizing the success of recommerce among peer-to-peer platforms, large companies, particularly clothing retailers, are seizing the opportunity to connect with consumers like never before. For example, buy-back campaigns create incentives for recycling and strengthen the relationship with consumers by offering a way to address concerns over sustainability.5 In moving towards a circular economy, companies can generate profits and eliminate waste by keeping materials in use for as long as possible. The cost effectiveness of recommerce combined with the ability to strengthen the bond between retailer and consumer makes it an appealing strategy for businesses.

Recommerce is Gaining Traction

An emphasis on conscious consumption has grown in the past few years, but changes in attitudes and actions have increased significantly in response to the pandemic. Consumers are concerned about the effects of their purchases and are re-evaluating their priorities and choices. By changing their buying habits, consumers can continue to shop while still caring about sustainability, and resellers can earn extra money, save space and avoid waste.6

Already gaining popularity pre-pandemic, recommerce websites received a huge boost when COVID-19 forced many stores to close their doors and individuals to tighten budgets.7 With more free time, reliable internet (5G), and a desire to escape the pandemic, shoppers discovered an endless aisle of secondhand goods to browse on the internet. Despite decreased disposable income, retail therapy continued to thrive as recommerce websites connected shoppers with affordable goods without ever leaving home. To make the situation even more appealing, apps like Poshmark accept almost every form of payment including credit or debit cards, Affirm, Apple Pay, Google Pay, PayPal, and Venmo.8  All of these factors encourage shoppers to visit recommerce marketplaces and contribute to the growing recommerce economy. 

Benefits of Recommerce

Both individuals and large companies can benefit from recommerce. While individuals have much to gain from peer-to-peer platforms that allow for an easy exchange of goods, large companies are finding different ways to capitalize on the recommerce industry. Consumers are concerned about the negative impact of their purchases on the environment and are looking for ways to reduce their consumption. In response, retailers are developing creative solutions to source and reuse materials for new products so that consumers can feel better about buying their products. 

Upcycling, the act of converting a used product into something new,9 is a concept that is being adopted by many notable companies such as Timberland, Adidas, Zara, and Patagonia to name a few. Timberland is reusing rubber from used tires for the soles of many of its boots. Similarly, Adidas has produced nearly 6 million pairs of shoes using recycled ocean plastics, and Zara is producing a line of denim made exclusively from recycled denim waste.10 Programs that provide customers with incentives for recycling such as Patagonia’s Worn Wear initiative encourage customers to return used goods to be refurbished and sold in exchange for credits towards future purchases once received.11 All of these measures are cost effective means of sourcing materials. 

Recommerce is Here to Stay

Many notable companies are embracing the concept of recommerce as a way to reconnect with customers. There is a changing consumer mindset regarding ethical and environmental issues. Younger consumers care deeply about the environment and will continue to demand accountability from companies.11  According to a study conducted this year by Green Print, an environmental technology company, 75% of Millennials and 63% of Generation Z are willing to pay more for an environmentally sustainable product.13 In many cases, younger consumers prefer secondhand products because they are more affordable and better for the environment.

Recommerce offers an avenue for retailers to acquire new customers who might not have previously purchased full-price items in the past. For example, Levi created a buy-back and resale program where customers return their used denim in exchange for a gift card. Levi then sells the used clothing at a fraction of their original cost on the store’s website. This allows Levi to reclaim and authenticate its goods at a low cost to them, and turn a profit on an item that they have already sold once. This is a win-win as shoppers know they have made a sustainable purchasing decision, and Levi can earn additional profits, protect the authenticity of their brand, and strengthen the relationship they have with their customers.14

There is real consumer demand for sustainable recommerce models. Consumers will seek products from brands that align with their values and will expect retailers to offer transparency regarding how they source materials and manufacture goods. Through the implementation of recommerce initiatives companies can save resources, restore value to used items, improve brand image and generate profits. With increased pressure on the retail sector to act more socially and environmentally responsible, recommerce offers an opportunity for businesses to succeed in the post-pandemic world. 

Footnotes

1. https://www.greenbiz.com/tag/recommerce

2. https://www.liebertpub.com/doi/full/10.1089/sus.2020.29178.ers

3. https://nymag.com/strategist/article/recommerce-apps-changing-online-resale-depop-poshmark-real-real.html

4. https://superposher.com/blog/top-poshmark-brands/

5. https://www.zerowastescotland.org.uk/content/what-are-circular-economy-business-models

6. https://www.easyship.com/blog/rise-of-recommerce

7.  https://support.poshmark.com/s/article/284791087?language=en_US

8.  https://getshogun.com/learn/what-is-recommerce

9. https://www.liebertpub.com/doi/full/10.1089/sus.2020.29178.ers

10. https://www.zara.com/us/en/z-join-life-mkt1399.html

11. https://www.easyship.com/blog/rise-of-recommerce

12. https://www.businesswire.com/news/home/20210322005061/en/

13. https://www.forbes.com/sites/niallmurphy/2021/02/17/theres-a-quiet-revolution-underway-with-recommerce/?sh=7b2c9a405bfc

14. https://www.forbes.com/sites/niallmurphy/2021/02/17/theres-a-quiet-revolution-underway-with-recommerce/?sh=7b2c9a405bfc

Exploring The World Of Online Payments

Posted on by Antony
BORN Views
Exploring The World Of Online Payments

The saying “cash is king” is still true today. However, the use of physical currency is declining as more online payment options become available. The physical dollar, euro, pound, yen, and others are being used less in transactions. Instead, businesses are enabling customers to pay through digital payment processors. Why are businesses making the shift from accepting physical currency to digital payments? In the past, it was commonplace to see a sign on many storefronts reading “cash only.” During the COVID-19 lockdown, most storefronts shut down and converted their business online, eCommerce was booming. Now, with most storefronts opened back up to the public, many are opting to stick with digital payments. It makes sense to use online payment options because we live in a global economy, and digital transactions can help businesses reach consumers worldwide. However, online transactions don’t come without concerns, and some skeptics believe they could pose security risks. Luckily, different payment options are available that can help mitigate the overall risks. 

Digital Wallets

According to Investopedia, a digital wallet securely stores users’ financial information through a software-based system. Digital wallets can be adapted by financial institutions and payment processors, such as PayPal.1 Banks can use digital wallets through mobile applications that allow users to deposit checks, transfer funds and pay bills. Payment processors make it easy and secure to pay and get paid through online digital wallets. For consumers, many payment processors offer buyer protection to help combat fraud, and businesses can invoice customers worldwide in all currencies with a click of a button. Most smartphones also have a digital wallet feature that allows users to store their credit and debit card information securely, so there’s no need to carry a physical card.

Cryptocurrencies

Cryptocurrencies are becoming increasingly prevalent worldwide, and many countries are considering ways to include them within local economies. An article from the Atlantis Press discusses how cryptocurrency uses technology that secures transactions making it difficult to falsify. This is accomplished through online transactions that include unique encrypted algorithms. Many countries, including Indonesia, are searching for ways to replace conventional money with cryptocurrency. Unlike traditional money, cryptocurrency is not created by a central bank or government, which prevents interference from the state.2 This is particularly useful for the developing world or unstable governments. For eCommerce, cryptocurrencies provide a secure way for consumers to purchase goods worldwide. The true potential of cryptocurrency has yet to be seen, but with online payments increasing, it’s bound to be a top contender.

Blockchain

Often blockchain is referred to when talking about cryptocurrency, but this digital transaction system can be used for so much more. So, what is blockchain? According to Forbes, blockchain can help prevent hacking and cheating because it uses identical copies of its database with each transaction. The blockchain digital ledger can store data from online payments, NFT ownership and smart contracts. Unlike traditional databases, blockchain is entirely decentralized.3 Blockchain can be used in many digital transactions, including cryptocurrency, traditional currency (dollar, euro, etc.) and asset transfer (inheritance, real estate, etc.).

Online payments aren’t going anywhere. The growing global eCommerce industry depends on having reliable and secure digital transactions for consumers. This is the time for businesses to expand their online payment options. Whether primarily brick and mortar or exclusively eCommerce, adding the ability to pay with cryptocurrency or through a digital wallet and blockchain will provide opportunities to attract new customers.

___

Footnotes

  1. https://www.investopedia.com/terms/d/digital-wallet.asp
  2. https://www.atlantis-press.com/proceedings/iclave-19/125937703
  3. https://www.forbes.com/advisor/investing/what-is-blockchain/

The Next Growth Frontier: Reimagining Telecommunications in the Digital Age

Posted on by Antony
BORN Views
The Next Growth Frontier: Reimagining Telecommunications in the Digital Age

Telecommunications has always been an important Industry in contemporary economies, but with the COVID-19 pandemic unfolding, society has relied even more on interconnectivity to access essentials of day-to-day life, As a result, telcos today are looking into their business & operating models with a new lens, creating a strong foundation for digitalization with a potential value of US $2 trillion through 2025;

As the digital revolution unfolds, the telco ecosystem has opened up to an immense opportunity to move up the value chain to explore new revenue levers. BORN’s own Aditya Basu, Head of Corporate Strategy and Marketing in APAC and MENA, notes

“Today the telco ecosystem represents an increasing competitive pressure on core business and an immense opportunity to move up the Value-Chain to explore new sources of revenue levers. To excel in today’s ever-changing market dynamics and customer needs, telco needs to build agile, modular, customer-centric & intelligent platforms that leverage their own & partner’s services.”

Key-Value Drivers & Market Levers in Telecom

Telcos over the past decade have seen revenue growth stagnate, despite exponential growth in bandwidth usage, forcing them to contemplate upon the new age growth drivers. Even today, telcos are more prone to diversifying their revenue streams but margin management still remains a challenge. Some of the key pain points & opportunity drivers for telcos across the pivots of business, operations, customers & services can be seen in the graph below.

Hence the key value drivers & focus areas for telcos across the globe should be:

  • Omnichannel Experience: The ability to provide an omnichannel experience by enabling the front (digital) to quickly adapt to market realities without having the backend (BSS systems) undergo major changes.
  • Modular new-age scalable platforms to onboard and bundle new partners and their offerings quickly and consistent product & services information across channels.
  • The ability to track consumer behavior across channels and achieve personalization at scale, thereby providing a superior customer experience.
  • Expanding product portfolio from Core to Complementary and beyond, thereby increasing channels & digital touchpoints to reach a larger audience.
  • Building and participating in ecosystems to collaborate and create economic value.

Now coming to niche focus areas of digital levers in the telecom, “Network of the Future” is a term telecom operators should swear by when developing their business models. Virtualizing current legacy Infrastructure promises to fundamentally change the basis of future service, as it can create self-optimizing and safe zero-touch networks. Expanding the product portfolio from core to complementary and beyond is another key driver. The increased digital transformation presents the telecom industry with opportunities to extend revenue streams beyond connectivity through IoT solutions, consumer and enterprise digital services across digital touchpoints, and reimagined digital communication models leveraging augmented reality/virtual reality and smart mobile advertising. Lastly, to win the race for customer loyalty and wallet share, telecom industry players should focus on providing superior customer experience and building and participating in ecosystems to collaborate and create economic value and exciting digital experiences.

Customer Experience Management in Telecom: What, Why,  How?

We can break down the elements of a telecom value chain as follows; Network convergent technology and infrastructure, Products and services, Partner and ecosystem, Enterprise technology, and Customer Experience Management(CXM) form the core of it. 

Drawing our expertise in CXM, we define CXM in Telecom as the amalgamation of the ‘system of records,’ ‘ system of intelligence,’ ‘system of engagement’ & ‘system of things’ for an end to end digital transformation across the customer lifecycle. Essentially, it means mapping customer interactions across touchpoints & channels and optimizing customer journey by delivering personalized experiences with Integrated technology & services. However, the needs and expectations of the partner ecosystem are always changing. Telecom providers will be facing discrepancies in consistent brand & omni-channel experience, and contextualizing personalization to align with the customer demands.

The need & expectations of our core partners and customers are changing rapidly and some of the key challenges in delivering a best in class experience are 

  • Consistent Brand Experience & Engagement – Customers expect the brand’s value proposition to be delivered consistently across their customer journey. Currently,  there is a value leakage across the  customer journey due to channel  proliferation & inconsistent interactions  across touchpoints
  • A Holistic customer profile – Organizations & brands should strive for having a single source of truth on customer’s interactions, channels,  purchasing behavior, experiences &  social interaction to create an integrated & unified communication strategy.
  • Omnichannel Experience – Omnichannel experience is one of the biggest challenges for organizations. An  integrated channel experience is highly  desirable, but hard to achieve
  • Contextualizing Personalization – Every customer wants to be treated as a  valued individual. Hence businesses should be able to chalk out relevant user persona and optimize their touchpoint management.

Aditya Basu further notes,

“Enabling telcos to measure customer experience by creating a differentiated experience across channels will be a major competitive advantage and will enable combat some of the bottom-line pressures “

Walking the Talk Leadership: Enabling Telco Transformations Across the Globe

BORN built a commerce platform for a leading telecom player in Malaysia that delivers an exceptional customer experience. One of the hallmarks of the solution was the implementation of the headless commerce architecture with a common commerce platform providing unified catalog, Payments, Order Management, and Fulfilment capabilities across all channels. As a result of the solutions implemented, over 3.5 million users were registered across digital channels in 8 months since launch. There has been a 150% increase in the number of transactions on web channels, a 300% increase in conversion rate, a 30% reduction in bounce rate with a 10% increase in average web session duration.

We were also approached by one of the global leaders in Communication Technology, to create a fully integrated solution that could deliver advanced services to 3.5 million businesses across six continents. We implemented a diverse range of technology improvements, including new feature development, integration of multiple updated applications, and development of automated workflows. The company saw an improved user experience with a 5 point NPS improvement while the bottom line improved with a 70% reduction in the manual intervention. Our solution combined insight-driven CX and strategy frameworks to deliver the best outcomes. The accelerator methodologies used, delivered a customer-centric approach at speed. The company was able to apply a catalog of behavioral nudges to review their current user journeys.

Behavioral Sciences in Branding

Posted on by Antony
BORN Views
Behavioral Sciences in Branding

It is essential for any designer to understand customer psychology in building a solid visual brand and digital experience. While design aspects such as typography, imagery, and color scheme play a huge role in branding, it’s also important for brand’s to gather data revolving around a customer’s online experience – including what pages they visit, the ‘digital routes’ they may take, and so on. By reviewing visual identity, behavioral maps, and behavioral science, we can get a clear idea of how to create effective branding for any consumer.

Visuals can make or break the customer experience

Color schemes, shapes, typography, fonts, and other design elements are integral to a company’s visual brand. Effectively communicating a brand’s message through visuals is helpful in multiple ways. It allows customers to get a sense of what to expect from the brand, highlights a brand’s uniqueness, and educates consumers on where the brand fits in a larger market. 

Visual identity comprises a brand’s logo, imagery, typography, colors, and creative design. A brand’s logo should be simple, communicative, and reinforce a positive brand image constantly. A good logo strikes emotion – the classic Nike Swoosh does an excellent job invoking a memorable connection. It represents triumph, victory, motivation, and optimism1. Seeing the Nike Swoosh at the end of a commercial or promo video often leaves the audience feeling encouraged and inspired. 

A strong visual identity leaves a powerful first impression on its audience. BORN Group’s design approach and content guidelines speak to the ever-changing global market. We focus on keeping our visual aesthetic in tandem with our tone and voice, reflecting our values in innovation, transformation, and strength. The marriage of compelling images with insightful content represents our branding, leaving a sophisticated first impression on our audience and potential clients.

Behavioral Maps

To truly follow a user’s journey on a site, a brand needs to think from a user’s perspective and  understand complex user behaviors. It is a common mistake for brands to get caught up in their own presumptions and neglect users’ real needs and pain points. In such cases, a behavioral map can be an effective solution.

A behavioral map focuses on a certain action performed by a customer that is deemed as ‘successful.’ Mapping exactly how the customer gets to the desired action will give us insightful information on how to keep users engaged and entice more users to complete the same action. Examples of helpful behavioral information include most-viewed pages, CTA or filters toggled, the engagement time spent on certain content modules, and the digital routes taken to an action, etc2.

To design a seamless user experience, a brand should identify key behaviors and reduce any obstacle a user may face to achieve said action. Utilizing behavioral data will help brands convert first-time users as well as increase ROI in the long term. 

Pictured above is a simple example of a user’s behavior map on Klick, a digital healthcare hub3.

Choice

Behavioral science, as opposed to cognitive or social psychology, deals with the processes and heuristics of decision-making4. Personal preferences, purchasing power, and economic climate all have an impact on a consumer’s buying habits. Being able to identify product value propositions and occasions of purchases will also provide marketing professionals insightful information on building a successful brand5. 

Design elements, consumer behavior, and user experience are integral to a brand’s digital strategy. Leveraging natural human instincts and user behavioral data will improve users’ digital experiences and elevate the overall storytelling and brand identity to a new level.

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Footnotes

  1. https://www.brafton.com/blog/graphics/visual-branding/

2. https://www.mindtheproduct.com/how-to-design-products-using-behavioral-science/

3. https://www.klick.com/health/news/blog/insights/using-behavior-and-surveys-for-patient-journey-mapping/

4. https://www.ipsos.com/sites/default/files/ct/publication/documents/2019-04/external_ipsos_besci_advising_-_vf.pdf

5. https://www.omniconvert.com/blog/consumer-behavior-in-marketing-patterns-types-segmentation/