The Mexican economy faced many challenges last year. Due to the illness, incomes of various companies decreased. Only vital businesses could be closed.
This topic brought up many questions, including the following: What makes a business indispensable? They are the ones that provide basic necessities.
If so, then why did clothing shops and restaurants have to shut down? Is it possible that food and clothing are not being sold to meet human needs? The decision to close or not open certain places would be a little arbitrarily. People who couldn’t keep their direct sales to the public open found another way to generate income.
National businesses show signs of improvement despite the fact the pandemic is still ongoing. The National Association of Self-service and Department Stores reported that sales of stores increased by 15.3% last July. Businesses can also continue operating after complying with sanitary measures like site disinfection or capacity control.
Experts were able identify a potential business opportunity after this difficult period for the Mexican economy. Mexico’s consumption rate increased by 35% from 2019 to 2020 through digital commerce. The Mexican Online Sales Association (AMVO), however, stated that digital commerce grew by 81% in the period of lockdown.
It is evident, with the rapid growth of the business model, that technology has become a key factor in the success and failure of every undertaking.
The new buyer not only changed the way they buy products but also how they shop. This new context made it more connected to technology. It also transformed it into a digital purchaser, which is a challenge to commerce. Sergio Villarruel was the General Manager of Fiserv Mexico during the webcast The new reality for shops: opportunities and challenges in sales strategies.
Omnichannel, the future for business
Omnichannel refers to a strategy for promoting products and services via multiple points of sales, digital or physical. It offers the same experience regardless of the channel or route through which customers access them.
This allows for more efficient communication and generates more sales than if it were done through one channel. An omnichannel strategy can help you be more competitive in your market.
We now know the importance of omnichannel and how to adapt it for our company. The goal is to make omnichannel work for you. Customers can view the product online, then buy it in person.
It is common for department stores to use the Click and Collect sales model, where customers pay online but then go to the physical store to pick up the product.
Another important point to remember is the ability to sell through multiple channels. For example, let’s take a look at a restaurant. It generates revenue from local consumption, as well as through various platforms like UberEats and Rappi. DidiFood also offers home delivery via phone. Orders can be placed by the app or the website.
Omnichannel also offers the opportunity to promote the company. The popularity of word-of mouth referrals is still a problem. You can now go online to see customer reviews and share their product purchases via their social media networks. Another reason to omnichannel is having an online presence and getting more recommendations if your product is superior than others. This will help you position yourself in the market as a stronger and more forceful leader.
Problems and Solutions
Entrepreneurs will need to adapt their business models in order to be compatible with the new sales modeality.
It is important to make technology more mainstream, no matter what line of business it is. We mean: What does this mean?
While it may seem like everyone has access to a smartphone with a computer, most people don’t know how to use omnichannel. The reality is that digitization remains a rare luxury. Many cannot afford to invest in app development, with an average cost of 80,000 to 100,000 pesos for a medium-complexity app. This problem can be solved by using public platforms such as Facebook Marketplace. Small entrepreneurs can set up and approve sales, and make full use of the omnichannel via a free channel.
Next, you need to build trust with your customer in order for them to give payment details. Digitization brings many problems. Fear of fraud, card theft, and data theft may make it difficult for the user to pay remotely. You must build enough trust to allow the client to share their information. A highly secure payment system can help to minimize incidents like those mentioned previously.
Villarruel points out that companies who have created an e-commerce site, and opened their doors to customers must also be able to use the technological tools available to make digital and physical payment easier. Fiserv is a payment processor that offers omnichannel services to its clients. This allows them to offer different options to pay, including physical and mobile payments, as well as checkout integrations, buttons, links, and buttons. Payments are just one example.
Our products are designed to work together. Merchants have the ability to accept foreign and national cards through one terminal. This allows them to offer a variety of payment options, so they can handle transactions using different methods. “We offer month-long interest free payments, electronic wallets, and vouchers that are protected by the most stringent security standards,” said Omega Garcia, Product Director, Digital Commerce in Latin America at Fiserv.
Publiated at Thu, 9 Sep 2021 18:27:45 +0000