Survey: Wal-Mart Appeals To Hispanic Consumers
ATLANTA–A new survey indicates that one-third of Hispanic consumers say they would be likely to use the kinds of financial services being introduced by retailers such as Wal-Mart.
The survey, part of the Hispanic Market Monitor from Synergistics Research Corp., said it found that one-tenth of Hispanic consumers report that they have already services such as check cashing, money transfers, bill payment, and money orders from Wal-Mart. Of concern for credit unions is that that further analysis revealed that three-in-10 Hispanic consumers who have financial accounts with a bank or savings institution say they would be likely to use the money services provided by Wal-Mart, with one one-tenth of these Hispanic bank customers say they have already done so. “Traditional providers should seriously evaluate the competitive threat of Wal-Mart, particularly with regard to the Hispanic market,” said Synergistics CEO William H. McCracken. “Not only do the money services being offered at Wal-Mart stores erode the ability of banks to earn revenue from these types of services, it reduces the contact banks have with these consumers which could lead to new relationships.”
For info: www.synergisticsresearch.com.
Purchasing Program Not A Great Deal For Suppliers
BOSTON–A new purchasing program introduced by U.S. Bank Corporate Payment Systems is a much better opportunity for the purchase than the supplier, according to an analysis by Aite Group.
The U.S. Bank Access Online Payment Plus “extends the value of purchasing card programs by allowing organizations to further automate their accounts payable business processes through diminishing paper, increasing controls, reducing risk and facilitating working capital optimization,” U.S. Bank said, adding the system accommodates payment for purchases with high control requirements such as purchase orders, receipts and invoices, and also leverages existing client systems, such as order, receipt, inventory, fixed assets and accounts payable, to generate approved payments that may then be placed on purchasing card accounts.
According to analysis by Aite Group Senior Analyst Nancy Atkinson, the new offering is a much better opportunity for the purchaser than the supplier.
According to Atkinson, the system only addresses the opportunity from the payer’s perspective. It likely cost the supplier that accepted the $1.55 million payment at least $310 to collect that payment, she suggested, adding that compared to what is the most expensive payment method, wire transfer, at $15-$30 per payment, the supplier paid an incredible amount to receive that payment.
* Most likely, a portion of the interchange fee paid by the supplier will be “rebated” (revenue shared) with the buyer, making this payment even more beneficial for the payer.
* Unfortunately, the supplier would have been better off had the payer wired the money to it. Availability would have been better (by a day or two) and the cost would have been lower.
* Given that the supplier accepted the payment, there may have been pricing adjustments (upward) or a longer term positive relationship impact that leads the supplier to accept this form of payment.
* P-cards have an important role in B2B payments, but the balance of value remains heavily weighted toward the purchaser.
For info: www.aitegroup.com.
How To Measure Impact Of ‘Engagement Actitivities’
SALT LAKE CITY –Allegiance has released a white paper aimed at helping CUs measure the impact of engagement activities on revenue titled “The Positive Economics of Customer Engagement.” The company defines engagement as the “emotional connection or attachment that a customer develops during the repeated and ongoing interactions with a company. Engaged customers demonstrate behaviors such as referring other people, buying more products more often, staying longer in a business relationship, and remaining loyal even when faced with poor customer service or a bad product experience.”
The paper identifies four of the top outcomes of customer engagement and shows how to measure them in actual dollars. These include:
1. Share of Wallet–Engaged customers buy more products/services, more often.
2. Positive Referral–Engaged customers persuade potential customers to switch brands.
3. Customer Churn–Engaged customers remain loyal and stay longer.
4. Feedback Response–Engaged customers give more feedback, which allows companies the opportunity to address concerns and save potentially lost revenue.
“These measurements work because they are easy to implement by almost any business out there today,” said Kyle LaMalfa, Allegiance best practice manager and engagement expert. “Loyalty and engagement professionals should have absolute confidence that their efforts have a positive impact on their organization, and these measurements help show that reality.”
For info: www.allegiance.com.
