Amex Exec Says Payment Tech Will Drive SMB Customer Loyalty

Small- to medium-sized businesses (SMBs) must balance customer demand and seamless operation.

“It’s important that businesses make sure they’ve got the right technology in place to ensure that their front-end checkout experiences, as well as their back-end processes, are operating as efficiently and as effectively as possible,” American Express Vice President of U.S. Merchant Marketing Tessa R. Dooley told PYMNTS.

Adopting operational agility and cutting-edge payment technologies can help SMBs succeed, Dooley said. Offering customers multiple payment options is no longer a luxury; it’s a strategic imperative. According to the Amex Trendex: Digital Payments Edition, surveyed merchants estimated that one-third of their sales transactions are made using digital payment options like mobile wallets and contactless payments. Businesses should cater to this demand to stay competitive.

“Businesses should take a cue from these industry trends but also analyze their own customer data to tailor payment options that best meet their customers’ preferences,” Dooley said. “Offering different payment options to customers, especially during high sales periods like the holidays, can help give businesses a leg up on the competition.”

The rise of contactless payment options and mobile wallets, already adopted by most businesses, has reshaped consumer expectations for quick and secure transactions.

The Payments Advantage in Competition

Certain times of the year, such as the just-ended holiday shopping season, present unique opportunities for SMBs to capitalize on increased consumer spending while laying the groundwork for future success. Tools like digital payments, loyalty programs and operational automation can benefit customers and, in turn, help SMBs.

Flexible payment solutions, such as buy now, pay later (BNPL), are also customer favorites. Dooley said American Express’ own BNPL offering, Plan It, empowers SMBs to provide customers with installment payment options, enhancing accessibility and affordability.

Beyond payments, operational preparedness is critical during busy seasons. SMBs should streamline inventory management and simplify the returns process across multiple sales channels.

“Prioritizing tools to automate and streamline your payment processes helps to make [a busy] sales period manageable,” Dooley said. “It can help businesses to manage their cash flow, save employees time that they might have spent on more manual processes, and help ensure that transactions stay secure.”

American Express offers a range of resources to help SMBs, including its Business Savings Suite. Over the holidays, the company highlighted offers from brands that businesses could use to help improve their marketing, Dooley said.

Additionally, for the 15th Small Business Saturday and holiday season, American Express provided educational tools and resources to help SMBs maximize their holiday sales and beyond.

Building Customer Loyalty

Understanding customer behavior is another factor for success, she said. It’s a key area where data-driven insights can help SMBs develop effective loyalty strategies to retain existing customers and attract new ones.

“Insights from customer data can translate into effective loyalty strategies,” Dooley said, highlighting how targeted offers can amplify growth.

Businesses that use these insights are positioned to differentiate themselves in a crowded marketplace, and American Express’ Amex Offers platform can help. With Amex Offers, merchant advertisers can serve relevant, personalized offers to Amex card members based on how they spend, which can help drive business.

Payment technologies promise to remain a cornerstone of SMB growth. By prioritizing digitization and streamlined processes, businesses can free up resources to focus on their core strengths, such as product innovation and market expansion, she said.

“When businesses prioritize digitization and streamline their payment processes, they can spend more time thinking about how to innovate their product suite or how to connect with new customers,” Dooley said. “We’re passionate about seeing our merchants succeed.”

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