Interview • 21.10.2015

"The customer needs to receive consistent information and services at each contact point"

Interview with Mirko Hüllemann, CEO of Heidelpay

Mirko Hüllemann: In order not to lose interested customers during the checkout...
Mirko Hüllemann: "In order not to lose interested customers during the checkout process again, it is crucial to determine payment methods on an individual basis."
Source: Heidelberger Payment GmbH
Invoice, PayPal, direct debit und instant transfer are the preferred methods of payment of German customers in eCommerce. Several studies over the past few years have also shown: offering convenient payment methods has become an especially important service aspect for customers. Mirko Hüllemann, CEO of payment service provider Heidelpay, knows the right methods of payment for the respective choices. 

Mr. Hüllemann, how important is it for the brick-and-mortar and online retail sectors to provide a variety of payment methods? 


In light of the fact that studies revealed that a large portion of potential customers literally abandons the shopping cart during the checkout process because their preferred payment method is not being offered, presenting a variety of payment methods is crucial for online retail. While customers have the option of paying cash for the items at the checkout in brick-and-mortar businesses, the only choice they have on various online channels is to search for the same product at a competitor’s site. This needs to be prevented by offering a wide range of payment methods – both at the point of sale at a brick-and-mortar store and in online retail. However, the idea is not to offer as many payment methods as possible but rather to filter out the most important ones. 

What methods of payment are imperative for which sales channel? 

A variety of different factors plays a role in the payment methods retailers should choose for the respective sales channel. It is, therefore, absolutely essential for example to factor in the respective customer preferences , target groups, the product to be sold, the distribution channel and country-specific factors when you set up the mix of payment types. 

In order not to lose interested customers during the checkout process again, it is crucial to determine payment methods on an individual basis based on the underlying business model. To do this, many online retailers resort to the expertise of payment service providers. Popular payment methods in German omnichannel commerce include purchase on account, PayPal, direct debit, and instant transfer, whereas European eCommerce prefers national and international credit and debit cards.

The offer of different payment methods is diverse - the right payment method is...
The offer of different payment methods is diverse - the right payment method is what matters.
Source: Heidelberger Payment GmbH
How do payment services need to be designed for the various channels? 

Consumers increasingly expect fast and at the same time secure payment processes that can be conveniently completed regardless of the device. Simple checkout processes should also ensure a smooth and easy ordering process irrespective of the channel and location. To ensure this, it is essential to configure the checkout pages using responsive design. Thanks to automatic adaptation to the output medium, all contents can be optimally presented. 

Omnichannel also means to seamlessly link all of the different channels. After all, a purchase often doesn’t just take place via a single channel. Customers buy online for example and pick up the merchandise at a brick-and-mortar store – or vice versa. This places increasing demands on the payment process. 

Customers don’t want to pay for the merchandise with cash at the checkout but at a POS terminal with the typical online payment process, such as PayPal or payment by invoice and subsequently have the product delivered to their homes. It is crucial to offer customers a consistent user experience, proven payment methods and the convenience they are used to – regardless of the sales channel they choose. 

Additionally, a professional omnichannel payment solution should offer the chance to review and monitor all payment processes with just one back-end system regardless of the chosen sales channel and payment process.

The new Euronics online marketplace uses a payment solution from Heidelpay....
The new Euronics online marketplace uses a payment solution from Heidelpay. Customers can order products from various retailers of the buying group through the platform - even with mixed baskets they only need to go through one checkout process.
Source: Heidelberger Payment GmbH
How can retailers implement a truly comprehensive omnichannel payment system? 

Today it is no longer sufficient to provide services on different sales channels, for instance at the retail store, the online store and via a mobile app. It is also essential to integrate these channels intelligently so that the customer receives consistent information and services at each contact point. This also applies to payment processing: customers always want to be able to use the same payment options – regardless of whether they buy at a stationary point of sale, the web store or their mobile devices. 

This is why a good portion of retailers utilize the know-how and the experience of eCommerce service providers such as payment service providers (PSP). Aside from integration, they also take over payment processing. If the PSP is also authorized as a payment institution, retailers don’t need to acquire their own licenses to provide payment services in a time-consuming process since the payment service provider already holds the respective licenses. When you collaborate with payment partners, you need to make sure that their array of payment procedures and services is also available for all other channels like mCommerce or the point of sale aside from eCommerce. Thanks to standardized integration processes, plug-ins for all popular store systems and interfaces to downstream systems such as ERP for instance, a professional payment solution seamlessly and within a short time blends into the existing processes of an online store. 

What role does the payment aspect play for customer satisfaction – compared to other services that omnichannel retailers offer today? 

Only a consistent shopping experience is reflected in complete customer satisfaction. If one component fails, potential shoppers feel insecure and stop the purchase. This applies especially for the checkout processes and payment processing. Whereas many services are “nice-to-have” features in omnichannel commerce, professional payment systems are indispensable: when potential customers don’t find their preferred payment method or struggle with technical issues during the checkout process, they cancel the transaction. Only in very rare cases will customers try to shop at the same platform again. 

Interview: Daniel Stöter, iXtenso.com

related articles:

popular articles:

Thumbnail-Photo: Computer-generated imagery: better and faster product photography for...
12.04.2019   #online trading #digital marketing

Computer-generated imagery: better and faster product photography for online stores

David Wischniewski on the possibilities of product visualization

Product photography is essential to the success of any online store. Unable to provide haptic feedback, retailers are tasked with inspiring their customers to buy. This can be an expensive endeavor in the long run. Digitally created renderings of ...

Thumbnail-Photo: 2nd World Retail Forum, Amsterdam
07.03.2019   #event #artificial intelligence

2nd World Retail Forum, Amsterdam

The latest developments in the industry

World Retail Forum is a platform for retail professionals from across the globe to come together, share experiences and learn from top industry leaders and retail gurus. ...

Thumbnail-Photo: Implementing new ideas: Design thinking in the retail world...
29.04.2019   #customer satisfaction #trend research

Implementing new ideas: Design thinking in the retail world

Focus on customer expectations

It may be uncomfortable at times – but a change in perspective can help businesses to implement new ideas and successfully complete ongoing processes. Design thinking is a customer-centric approach that can help in this endeavor.“What do ...

Thumbnail-Photo: Footwear market expected to grow rapidly
15.03.2019   #trend research #brand management

Footwear market expected to grow rapidly

Application insights, latest trends, developments, and forecasts to 2021

Global Footwear Market is expected to grow at a significant CAGR in the upcoming years as the scope and its applications are rising enormously across the globe. Footwear is a garment worn on the feet to protect and comfort against adversities of the ...

Thumbnail-Photo: Post-purchase communication: Well-informed customers are happier...
21.05.2019   #customer satisfaction #customer relationship management

Post-purchase communication: Well-informed customers are happier

Shipment tracking options and convenient returns management solutions

Harald Mösel from b.telligent asserts that retailers can set themselves apart from the competition with positive, unique post-purchase experiences. In this interview, he illustrates how companies can utilize post-purchase communication to ...

Thumbnail-Photo: Holistic POS solutions in visual communication...
12.02.2019   #digital signage #Trade fair special EuroCIS 2019

Holistic POS solutions in visual communication

Product presentation and brand presence through signage

The effective placement of products at the POS is becoming increasingly difficult today due to the broad diversity of brands and the struggle for presentation area that goes along with it. Striking POS solutions are thus all the more important. ...

Thumbnail-Photo: The Guinness Storehouse in Dublin – a powerful customer magnet...
14.03.2019   #customer satisfaction #customer relationship management

The Guinness Storehouse in Dublin – a powerful customer magnet

Brand advertising with taps, creamy whitecaps, and hashtags

Just in time for Saint Patrick's Day, we turn our attention to arguably the favorite drink of the Irish: the iconic Guinness beer. Or, more precisely, the home of the stout: the Guinness Storehouse opened its doors in 2000 right in the heart of ...

Thumbnail-Photo: Award-worthy product presentations – Point of purchase displays...
08.05.2019   #pos marketing #displays

Award-worthy product presentations – Point of purchase displays

The 2019 POPAI Awards finalists in our photo gallery

This year’s POPAI Awards finalists prove that retail displays can do more than just grab the attention of consumers.Today’s displays not only reflect the overall customer journey, but also focus on storytelling and digital elements.The ...

Thumbnail-Photo: Good news for brick and mortar retailers
08.03.2019   #brick and mortar retail #in-store marketing

Good news for brick and mortar retailers

71 percent of shoppers are spending more in-store than online

Both men and women are spending significantly more in-store than online during a typical shopping visit according to a new report, by First Insight, Inc. The company, which recently surveyed consumers on shopping habits, purchase behavior and ...

Thumbnail-Photo: Designer Outlet Croatia as hybrid retail destination...
04.04.2019   #customer counting #shoppingcenter

Designer Outlet Croatia as hybrid retail destination

Building footfall and counting shopper traffic

Designer Outlet Croatia, majority-owned by Ingka Centres has enhanced shopper traffic performance by adding an aspirational, 'hybrid' retail destination to the existing IKEA Store in Zagreb supported by the implementation of a traffic ...

Supplier

Westiform GmbH & Co. KG
Westiform GmbH & Co. KG
Kinzigtalstrasse 2
77799 Ortenberg