How Data Security Can Improve Customer Experience
Where there is valuable data, there are criminals who want access to it. According to a report by Statista the number of data breaches has steadily been on the rise in the last 13 years, with 668 million breaches and 22.41 million records exposed in the first half of 2018.
It is vital that customer card data not be stored on the Point of Sale. Such solutions as Point to Point Encryption, End-to-End Encryption and Tokenization are commonplace in today’s processing world to keep card data safe, with tokenization pulling ahead and proving to be increasingly more valuable.
The security benefits of Tokenization have been published across the web from card brands such as Mastercard and Visa to business magazines such as Forbes. However, there are also some additional advantages to tokenization beyond its security purposes, that can help merchants grow their businesses and improve customer experiences.
- Card-on-file Functionality – With the ability to securely store tokenized card data merchants can begin to offer the ease and simplicity of a card-on-file experience, with the assurance of secured data.
- Cross-Location Compatibility – If a business has multiple locations then it is possible to securely share tokens between business branches. This further expands card-on-file functionality giving customers an even more seamless interaction with a merchant’s brand.
- Schedule Now – Pay Later Capabilities – When paired with an intelligent and powerful scheduling API, schedule-based businesses such as those in salon, spa and health verticals can make further use of a card-on-file feature by enabling customers to give their card data once and then benefit again and again.
- Upsell Opportunities – The ability to delay payment via a stored token creates positive opportunities to upsell as well. Customers are far more likely to add items to their purchase total, especially after a service, if they never have to touch their wallet. It’s all part of a seamless and more natural social interaction.
- Increased Loyalty – Positive interactions like these generate a sense of goodwill towards those merchants that offer such options. The ease, simplicity and security of card-on-file technology makes customers more likely to return to those merchants again and again.
According to a report released by Bond Brand Loyalty, 95% of loyalty program members want to engage with brands through new and growing technologies, including card-on-file functionality. Additionally, among those loyalty programs already using card-on-file, 85% of their members report that their experience has improved.
- Consumer Behavior Mapping – The merchant-customer relationships that are begun with a token at the point of sale can continue to grow and strengthen in relevant and meaningful ways. With an integration to the right type of marketing platform customer behavioral data can be used to intelligently communicate with a given customer based on their unique interactions with the business (spending trends, favorite items, frequency of visits etc.).
In fact, LoyaltyOne released a report revealing that 76% of customers felt it was important and preferable to receive personalized discount offers based on their purchase history.
Keeping customer data secure is a given in today’s technological environment, however that security comes with some incredibly valuable advantages that every merchant should be using to grow and improve their businesses and customer relationships.