In A Decade of Digital Transformation in 12 Months, 46 C-suite executives spoke with PYMNTS for its Q2 eBook on what the world will look like as recovery rolls on and the next iteration of normal rolls out. In this excerpt, Tim Joslyn, chief technology officer at Pollinate, explores how COVID-19 created the opportunity for merchant-acquiring partners to offer deeper digital experiences for small businesses and to leverage data to help SMBs succeed.
Read the entire eBook here.
The COVID-19 crisis caused a lot of digital transformation to occur at a faster pace than usual. Businesses – particularly small businesses – had to swiftly learn and implement new digital sales and communication channels in order to simply survive. The few remaining cash-only businesses had to find merchant acquiring partners for payment terminals to start accepting card payments, as consumers’ use of cash changed in fear of transmitting the virus.
There is now an opportunity for those merchant-acquiring partners to offer deeper digital experiences for small businesses, and to use the wealth of data at their fingertips to level the playing field between SMBs and their larger counterparts. Through FinTech partnerships, banks can blend issuing and acquiring data to better serve their small business customers and offer them new products, as well as spot things like cash flow problems in advance to build a better relationship with businesses.
One way banks can leverage SMBs’ digital transformation and drive it forward is by democratizing data insights and enabling SMBs to offer loyalty programs to consumers beyond simple stamp cards. Research has shown that over half of consumers want small businesses to offer loyalty programs, and these SMBs could be missing out on roughly 277 million shoppers across the U.S., the U.K., Australia and Brazil. With consumers trusting their transactional data with banks 2.5x more than with Google, Apple or Facebook, banks have an opportunity to support SMBs in delivering loyalty schemes – a sentiment shared by 72 percent of consumers interested in using a small business’ loyalty program.
By blending the issuing and acquiring data to offer loyalty programs, banks are able to identify when a consumer makes a purchase as well as what that purchase may be, and enable merchants to offer rewards based on consumer shopping habits. Merchants can take full ownership of the program, offering the rewards they choose based on transactional value or the volume of a consumer’s purchase. Through an app offered by the bank and linked to a debit card, consumers can collect points to redeem when they make a purchase at any of the merchant partners.
By closing this “loop” between the bank, merchant and consumer, but retaining privacy for all, everyone gets the best of both worlds. Consumers get relevant offers and rewards from the local merchants they care about the most, merchants get more customers and business insights that were previously only available to large retailers like Amazon and Tesco, and banks become the key player in all these relationships – enhancing business customers’ experiences and unlocking more value and new products and services.
While small businesses have had to undergo digital transformations quicker than they may have planned, it is now up to banks to help them deepen this, and build a “stickier” relationship between banks and merchants as they grow.
The pandemic didn’t kill the movie theater, but it did make people fall in love with streaming services. To remain competitive, the entire movie and streaming experience is undergoing an epic, Marvel superhero-like mutation.
Immersive film experiences that simulate reality have come to lure you away from your comfy couch and deep into the stories of your favorite movies.
We’re not just talking about 3D glasses or IMAX here. These cutting-edge experiences incorporate virtual reality (VR), augmented reality (AR) and interactive elements to create a multi-sensory adventure. You don’t just watch a movie — you seem to live it, breathe it and maybe even taste it.
Yes, attempts at Smell-O-Vision, such as the 1960 film “Holiday in Spain” (aka “Scent of Mystery”) were decidedly less than successful, but technology has evolved light years since then and industry insiders believe immersive movies could be the key to revitalizing the theater industry in a post-pandemic world.
“Immersive experiences tap into our innate desire for novelty and excitement,” says Sarah Chen, a media analyst at TechVision Research. “They provide a sense of adventure and discovery that appeals to audiences seeking new forms of entertainment.”
Think of it like a combination of playing make-believe when you were little and a Universal Studios theme park ride.
For example, Particle Ink’s “Speed of Dark” in Las Vegas offers a mixed-reality experience where guests interact with the physical environment and view live performances, blurring the lines between reality and fiction. Want to be Bond, as in James Bond? There’s a company that will help you do that in style, as well as with other film favorites.
And don’t think for a second that the streaming services are just going to sit on the sidelines and watch this happen. Netflix recently launched its “Stranger Things: The Experience” in select cities. Fans can explore recreated sets from the popular show, interact with characters and solve puzzles in a live, immersive environment.
And don’t forget about “Bridgerton” and its live concerts, teas and the Queen’s Ball experiences hosted by select cities including New York, London, Chicago, Atlanta, Los Angeles and Minneapolis. You may just want to spill a little tea at one.
PYMNTS Intelligence data also shows consumers love experiences, whether when traveling or shopping — and brands are noticing. A report last year, which drew on a survey of 4,285 U.S. consumers, showed that the highest earners are the most likely to splurge on experiences.
Brands and retailers, including Nike, Mattel, Target and Nordstrom, are also getting in on the experience craze, hosting live events and interactive experiences.
Speaking of phenomena like “Stranger Things” and “Bridgerton” that made us stay home to be entertained, “Imagine transforming your living room into a virtual theater [with VR and AR technologies]. The possibilities are limitless,” says Chen.
The technology driving these experiences can drive filmmakers to up their game. Eugene Chung, the director of the acclaimed VR film “Allumette,” said, “VR allows us to create worlds where viewers don’t just see the story unfold — they feel it.”
But let’s be realistic; there are some very big obstacles to widespread adoption of immersive cinema experiences. They’re expensive to produce, and some projects will need specialized venues. You can’t exactly fit a dinosaur-infested jungle in your local multiplex. Plus, there’s always the risk of motion sickness.
And there will be critics who argue that overly immersive experiences detract from the art of traditional storytelling. But who needs plot and character development when you can have explosions so intense that you feel the heat on your face?
As the line between audience and participant in the cinematic plot continues to blur, one thing is clear: The movie-going experience of tomorrow may be vastly different from what we know today.
Who knows? In a few years, you might be able to star in your own blockbuster, defeat the villain, and save the world — all before dinner time. Just remember to silence your phones, keep your hands and feet inside the virtual reality at all times, and whatever you do, don’t feed the digital monsters.
