STRATEGIC PARTNER: AMERICAN EXPRESS
As the world regains a sense of normality, the restaurant sector still needs to mitigate safety risks and introduce new ways to deliver a premium customer experience that’s safe and seamless.
In times of disruption, operators should focus on things within their control to put them a cut above the rest in their customers’ eyes.
For some, this means investing in new technology or front of house training, while for others, it might mean updating products and menus to reflect customer tastes. However, while these steps are significant, it’s also essential not to overlook the checkout experience.
Making payment frictionless
Robert Tedesco, Vice President and General Manager of Global Merchant Services, American Express, says that customers want a frictionless experience when making a payment – without fear of penalty or rejection.
Businesses that offer a hassle-free payment exchange have a more substantial chance of improving customer satisfaction and loyalty when considering that 89 per cent of the New Zealand population prefer not to use cash.
“Our research proves this: customers are more likely to abandon a cart if their preferred method of payment isn’t accepted at point of sale,” says Robert.
For the past 12-years, American Express has worked with the Restaurant Association to support members with payment choices and highlight how barriers to purchase can impact a business’s bottom line.
Accepting all forms of payment not only increases the chances of a repeat patron – but it streamlines business operations and enhances customer spending and loyalty.
American Express card members, for instance, have an average transaction size that is 1.6 times that of other credit cards. American Express card members can earn points and access offers and rewards in return for their spending. There are also incentives for them to seek businesses that accept their preferred choice of card.
Therefore, restaurants and cafes should indicate which payment options are available on their website and at the venue. Robert confirmed that American Express card members are often pleased when signage is clear from the outset, and the accepting merchants also notice the difference.
Last year, American Express ran a campaign to encourage accepting businesses to display Amex logos and imagery. Participating venues saw a 24% uplift in the number of new Amex card members coming into their store and a 17% uplift in the number of Amex transactions.
The cost of card payments has also reduced over time. Thanks to several American Express partnerships, including with Square and CBA, the cost of accepting American Express is no different from other credit cards.
Marisa Bidois, CEO of the Restaurant Association explains how crucial it is that businesses do not limit their customers’ payment options. “If your customers can’t pay how they prefer, then it can catch them off guard. Offering a range of flexible payment options removes this potential pain point and is another way to enhance customer experience.”
American Express Shop Small
American Express continues to work with the Restaurant Association to encourage booking and spending in the hospitality sector. For example, New Zealand is the latest country to introduce the Shop Small initiative. To mark the launch American Express commissioned research in New Zealand which revealed that only around one in five small business operators feel their wider local community rallied around them during the pandemic. American Express launched the Shop Small movement to encourage Kiwis to explore their local community and get behind small businesses, driving valuable spend back into this community.
Commenting on the success of the movement, Marisa says: “Shop Small helps bring the restaurant industry to people’s attention. It also highlights the importance of spending at a time when many restaurants and cafes need it most.”