Happy Friday! We’re bringing you the latest roundup of industry news. This week, we’re looking at the retail industry’s comeback, new research into the issues of PSD2 regulations, how the cost-of-living crisis is threatening hospitality and the WFH model, and Unilever’s newest partnership.
Key news
- UK inflation has hit 10.1% – the highest rate in 40 years. This is the first time it’s exceeded double digits since the ‘80s.
- Twilio’s investigation into their recent phishing attack is ongoing. The attack stole employee credentials to gain access of customer data. 125 customers have since been contacted to inform them that their data was compromised.
- Authenticx has launched a quality management solution in the healthcare sector. This analyses call centre conversations to expose areas for improvement.
- NICE have expanded their partnership with Microsoft to deliver CXone. This agent provides full contact centre controls and synchronises Teams contacts and presence information, overall creating a more frictionless and personalised customer experience.
New M-Cube data into developments to retail and the in-store shopping experience
A new survey by M-Cube has investigated marketers’ determination to attract customers back to high-street shopping. New findings have revealed that 27% of retail leaders believe, and hope, that consumers will return to the high street fully.
The high-street shopping experience is one that has suffered fatally due to closures and pandemic restrictions, alongside the rise in e-commerce. To get people back inside their favourite shops, 67% of marketers are determined to invest in engaging in-store experiences. However, 53% of respondents won’t be reducing e-commerce investment to prioritise their in-store engagement.
Another rising concern to the retail sector comes from the cost-of-living crisis – will customers still have the disposable income left for shopping trips? 16% of survey respondents predicted that this issue would impact physical stores more than those that are online.
“This research reveals that brands are shifting away from the online focus that has polarised retail in recent years, and investing more than ever in engaging in-store experiences. It’s an exciting time and a chance for rebirth for the retail industry”
Alexios Blanos, UK Business Director of M-Cube
This information also comes with over a quarter of survey respondents believing that in-store shopping will come back bigger than ever. There are arguments that the high-street will be busier than the pre-pandemic age. Once the in-store experience is back up and running, customers may feel the decision between shopping in person and online to be as tough as it once was. It’s time for them to weigh up the options again.
New research into PSD2 reveals gap in the e-commerce security regulation
Second Payment Services Directive (PSD2) regulation focuses on additional layers of security authentication for e-commerce transactions. PSD2 was published in 2015 along with Strong Customer Authentication (SCA) to require multi-factor verification when a debit or credit card is absent.
A new study commissioned and conducted by Riskified and Forrester Consulting respectively has assessed the role of PSD2 on e-commerce and online businesses. This comes seven years after the regulation’s initial release, and has found that businesses aren’t responding to it as planned. The regulation came into full enforcement in the UK back in March of this year.
A key finding from this research has revealed that 45% of UK and European-based e-commerce merchants are struggling with this payment regulation. Those included in this percentage are either following the minimum requirements of PSD2, or still trying to resolve issues related to it. These issues include technical and integration troubleshooting.
PSD2 was rolled out in attempts to reduce fraudulent behaviours and actions to make online payments safer for customers. However, 39% of merchants’ fraud rates have actually been negatively affected by these extra security measurements. Fraudulent chargebacks have increased, this study has found.
How can this be fixed? The survey offered some solutions to help merchants comply with PSD2:
- 65% asked for more transparency in payment processing fees, and the strategy system of PSD2 regulation
- 61% requested regular market performance updates
Security measurements for online payments are, without a doubt, a necessity. But a previous CXM article found that “over half of UK customers would stop their purchase if the checkout process is too complicated”. Multiple layers of security authentication may point back to this concern for customers.
Rising energy costs are posing threats to the end of WFH and hospitality sector
Energy bills have been predicted to top £5,000 within the next year – a 300% rise. It is looking to be a challenging winter ahead to stay warm and stay out of dept. This poses a risk to the thousands of employees working from home, either permanently, or on a hybrid working model.
Bloomberg has proved that Londoners will be better off to return to the office. By working from the office instead, workers may be saving up to £200 from just January’s energy bills alone.
This comes as leaders have been calling for a return to office work, anyway. Currently less than half of banking workers are working from their office, and 18% for insurance sector employees. Where money may be saved from reduced heating and electricity bills, workers will now have to spend on commuting instead.
Energy costs during this crisis are also posing a threat to the hospitality industry. Pubs, bars and other entertainment venues are now being warned of closures. Energy bills are resulting in these facilities being too expensive to keep open.
This is a hard hit for the sector to face on top of supply chain issues, inflationary pressures to increase their prices, and staff shortages. These new issues could threaten even more jobs, with thousands of people’s employment on the line.
Andy Machen, the landlord of The Faulkland Inn pub near Bath, has revealed this grim new reality the crisis is creating:
Unilever partnering with TripActions to better their travel programme
The global provider of consumer goods, Unilever, has announced its work with TripActions to modernise and optimise their global travel programme. This comes after Unilever determined their previous solution was no longer fit for purpose.
This travel programme will make simpler the travel experience for its employees – with meaningful and personalised experiences. The move by Unilever also aligns with their goal to empower employees and their work lives. This decision was enforced by the Unilever Employee Experience team. The partnership is hoping to “adapt to the impact of evolving technologies and ways of working.”
A key reason for Unilever partnering with TripActions is their awareness of CO2 impact from travelling. Therefore, they aim to ensure each trip is purposeful and worth the global impact. Unilever are currently aiming to achieve net zero emissions by increasing their sustainability efforts.
There’s many things that organisations can take from this news. Firstly, to look into the employee experience carefully where travel is concerned. Are you making your employee’s travel experience is seamless? Also, bigger efforts towards sustainability and achieving net zero. This is a huge consideration all businesses should be considering and acting on for the sake of the world’s future. With Unilever being such a widely-known name, for them to make these moves is hopefully one which may encourage others to follow. Are you doing enough for sustainability practices?
Thanks for tuning into CXM’s weekly roundup of industry news. Check back next Friday for the latest updates of the week!