If the Covid-19 pandemic has taught merchants anything, it’s that they need to take a radically wider sales approach to engage with customers online and offline, across any device, argues a new report from payments provider Square Inc.
Coupons are proving an effective tool for enticing consumers, the report says. In August, 78% of coupons sent through Square Marketing, which enables merchants to quickly create, send, and track email marketing campaigns, were redeemed within a week of being sent, up from about 50% in January.
In addition, online coupon redemptions increased by 40%, and in-person redemptions by 37%, during that period. The increase in redemptions across the online and in-person channels underscores a need for merchants to give consumers options for where they can redeem their coupons, Square says.
Loyalty programs are another tool merchants have been leveraging. Nearly 50% of loyalty messages sent by merchants enrolled in a Square Loyalty rewards program resulted in points being redeemed, with 15% of loyalty points being redeemed within a week of a message being sent.
“Today, we simultaneously live online and offline and there’s no longer a separation between the two,” says Saumil Mehta, general manager of customers, for Square.
The Strawhecker Group (TSG) and the Electronic Transactions Association (ETA) surveyed over 500 U.S. SMBs in April to understand how the COVID-19 pandemic is currently impacting SMB operations and payments acceptance, and how the market compares to April 2020.
Download the full 35-page report. The report helps the payments industry understand how to best support the SMB community as they continue to manage the pandemic, while moving towards a goal of greater recovery.
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