Digital options retailers can choose to solve payment challenges, meet customer expectations

Digital transformation has been the main talking point of every business discussion in the last five years, and even more frequently in the year 2020. It is becoming a top priority for every organisation, especially for retailers, due to two reasons - customer satisfaction and enhancing ways of doing business.

Tech-savvy consumers are shopping online, making cashless payments via SMS Pay (a handy payment method offered by Yes Bank), scanning QR codes, engaging with retailers through social media, and using loyalty and reward programmes. Since they are already aware of digital tools, now they expect businesses to integrate these tools for greater ease of payment, deliver on-demand products and services in less turnaround time, and roll out options for trial and buy.

According to a report by Deloitte, 71% of Indian shoppers use digital before their purchase journey, and around 70% of Indian consumers want to compare prices, obtain product information, etc., on devices.

Retailers also want to overhaul their operations and use different technologies to meet the evolving expectations of their target audience and acquire new customers. They want to bring agility to supply chains, solve vendor payment issues with less back-and-forth, track inventory, bring end-to-end transparency, network with peers, beat competition, innovate and launch new products and services.

Many large retailers are already providing advanced technologies to their customers, using contactless payment options, reconciling vendor payments, and much more. However, when it comes to the MSME sector, there is ample room for digital adoption to be accelerated and broadened.

There are small businesses that are not wholly aware of the far-reaching possibilities of a digital-first approach in streamlining operations. Many micro retailers are also yet to exploit the full range of benefits of Point-of-Sales (POS) machines, or deploy UPI and QR codes for payments.

It becomes crucial to demonstrate to these micro and small retailers that the benefits of digital tools extend beyond just simplifying customer payments. For example, a POS system offered under YES MSME can help business owners in consolidating all vendor payments on one interface. It also provides data on receivables and payables, receipts, date of purchase, etc. The POS machine also enables them to keep a stock of inventory, manage salaries, and simplify cash management.

For instance, a chemist can track which medicine is running out of stock on the POS terminal without physically counting the boxes and maintaining a register. Likewise, with a QR code scanner, they can offer more options to customers for payments.

To adopt digital methods and practices, MSME retailers can forge greater partnerships with banking institutions and enhance their capabilities in the financial as well as non-financial domain. Banking institutions are addressing these needs of the business owners and have started reaping the benefits of initiatives like YES MSME to add value to their relationship.

Digital transformation is not limited to big stores anymore. Small enterprises will have to hop on the tech bandwagon to sustain businesses, delight consumers, and bring their offerings on an e-commerce platform for greater visibility. To create digital enterprises of tomorrow, they will have to begin today.

This is a partnered post.