Consumer Expectations and the Great Transition

Consumer Expectations and the

Great Transition: Understanding

What Consumers Really Want In

Payments

Jill Gonzalez

Bank of the West, Senior Vice President of the Card Services Division

Shelly Belvill Vice President, First Data

Christopher Bumcrot

Partner, Applied Research & Consulting LLC

Copyright 2013 First Data Corporation. All Rights Reserved.

This document contains unpublished, confidential and proprietary

information of First Data Corporation. You may not disclose, copy or

use any part of these materials for any purpose without the express

written consent of First Data Corporation. All trademarks, service

marks and trade names used in this material are the property of their

respective owners.

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What do you do first thing when you wake up in the morning?

25% 20% 16%

11%

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PAUSE: Smart Phone Addiction!

Copyright 2013 First Data Corporation. First Data Universal Commerce Consumer Tracker.

CLIENT

EMPATHY CONSUMER

EMPATHY

UNDERSTANDING INNOVATION

4

Approach


MUST BE

EASY

TO USE

PERCEIVED

AS SECURE

PROVIDE A BENEFIT

5

What Works?


FIRST DATA

UNIVERSAL COMMERCE

CONSUMER TRACKER

Wave 2

6 Copyright 2013 First Data Corporation. First Data Universal Commerce Consumer Tracker.

How are real consumers

dealing with all

the changes happening

in payments and money

management?

US TOO.

That’s why we’ve been doing

some very interesting research to get

into the lives of our target audience.

60 consumers…

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Ever Wonder…


EARLY TECH ADOPTERS &

SAVVY SHOPPERS


Called OVER THE SHOULDER

to ride along with them on their

smartphones for

2 weeks to see…

Then they joined us in person…

plus we refreshed our quant data

to support what we found

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…Used a Clever Little Tool

• Who they are & what they’re about

• Their personal approaches to interacting with money

• The ‘tools’ they use during their day

• How they pay for things & think about money

Make a 60-second video that shows us your diagram, explains why you sketched it together the way you did, and how you FEEL about it.


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The Skinny…

• ON = OFF

– Consumers blur online and offline shopping and banking.

• BEYOND THE TRANSACTION

– They want more than just a transaction. They want an experience –

to be recognized for their loyalty, to have a personalized experience,

to best utilize their time (in and out) and to get a good deal.

• CONTROL ISSUES

– Consumers actively manage their money and expect real-time information

wherever, whenever.

• MOBILE TIPPING POINT?

– Mobile’s role in shopping and banking continues to increase,

as do the expectations.


38% Want

seamless

experiences

21% Want to start

online or offline

and finish on the

other… easily!

41% Received

eReceipt from

in-store

purchase

12% Remote deposit

checks sometimes

or frequently

55% Use smartphone

in-store to

comparison

shop

64% Have retailer apps

on phone;

typically use

<4 frequently

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OFF = ON


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OFF = ON


video 11-28-12/OFF_Equals_ON V3.wmv

CONSUMER UCOM HIGHLIGHTS 10-22-12/OFF=ON V2.wmv

Beyond the Transaction

• Let’s Make a Deal • Like Me Back • Know Me • Make it Easy


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Let’s Make a Deal

APPROXIMATELY 1/2 SEEK A GOOD DEAL

• Active coupons/deal user

(54% of smartphone users)

• 33% receive coupons/offers

near store today…

• BUT 56% want to receive

offers/coupons on phone

near store


video 11-28-12/Deals V3.wmv

43% Banks should reward/

recognize me

81% Carry 2+ loyalty/rewards cards

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Like Me Back


video 11-28-12/Loyalty V3.wmv

64% Expect bank to consider my

circumstances

44% Expect bank to offer products/

services to match lifestyle

40% Want tailored ads/offers

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Know Me



55% My time is valuable – speed up

shopping and checkout

47% New technologies should empower me

to be a savvier shopper

50% If technology is not easy the first

time, I stop using!

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Make it Easy



81% Expect real time access

47% Use bank app on smartphone

55% 18-34 year olds

82% Expect online banking

32% Expect app

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Control Issues


Control Issues


MOBILE TIPPING POINT?


s

28% Interest in Mobile Wallet

(up from 19% March ‘12)

Use Mobile Phone to Make Purchases

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5 in 10 Smart Phone Owners


5% Not Concerned

17% Neutral

77% Concerned

1% Don’t Know

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Mobile Wallet Security Concerns

Remain the Same from Wave 1


72% Payment info could be stolen by

someone hacking into phone

59% Worry about losing their phone

with payment information

Don’t Know

Interesting: Millennials also worry about security – but as savvier phone users also worry about everyday technical glitches

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Mobile Wallet Security Concerns

Remain the Same from Wave 1

56% Millennials concerned they might

not have a strong enough signal to complete a purchase

54% Concerned their battery might die

when they need to make a payment


Whether you are a bank, a store, small or large…

CONSUMER expectations continue to increase and

across industries

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Bottom Line…


WE BELIEVE OPPORTUNITY IS IN

UNDERSTANDING

THE OPPORTUNITY IS OURS

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Documents

Consumer Expectations and the Great Transition