The Cash Converter online store helped the company to reach growth peaks of 55% in 2020. The management of payments through this channel is complicated, since it has to coordinate 81 stores together with the eCommerce and the Marketplace.
Juan Carlos Peña, eCommerce Director of Cash Converter He has explained to us how they manage payments and look for new solutions.
Ecommerce News (EcN): How was the financial year 2020, a year so marked by COVID for Cash Converters?
Juan Carlos (JC): 2020 for Cash Converters has been a year in which we have had the opportunity to value what we have been working on for more than 25 years: buying and selling quality products, with guarantee and with great savings and of course, encourage our customers to carry out responsible consumption, since through reuse we extend the life of the products, preventing them from becoming waste.
In addition, it has been the year in which our purpose is most necessary: to encourage a change in consumption habits of Spanish families to achieve a more economically, socially and environmentally sustainable world.
In 2020, despite the closures and restrictions that have limited our growth in retail, in our online stores in both Spain and Portugal, we have had constant growth and we have even experienced some peaks with an increase in sales of 55% compared to the previous year.
EcN: What goals have been set for 2021 and how has the year started based on the metrics obtained during Q1?
JC: As a goal for next 5 years we have to multiply by 4 the billing of our online store through 3 essential axes: omnichannel, attracting new customers who value smart and sustainable consumption and increasing their recurrence.
For this we are aware that we must offer you a good product and to be able guarantee their quality we carry out an exhaustive control of them.
We have a team of professionals who analyze all its characteristics and condition in order to offer an excellent reconditioning, thus extending its useful life. We provide a great differential value compared to other companies.
In this sense, we have improved our way of purchasing products by introducing artificial intelligence patterns that allow us to make a better valuation and definition of the price based on its characteristics, condition, age and, of course, we validate it with the reference prices of the market.
The customer is increasingly sensitive to prices, so our main objective is to offer discounts throughout the year so that they obtain a great saving compared to if they buy a new product, without having to wait for a promotion to buy the product you are looking for.
We are working on a strategy of customer centricity, in which the customer is at the center of each of our actions, for this reason we have focused on improving the entire experience they have in each of the contact points: physical store, online channel and all the pre and post service sale, which are vital to guarantee the recurrence of our clients.
EcN: For a player like you with unique products, how is the payment management complicated?
JC: Due to the characteristics of our products, we not only focus on the last payment step, but on all the previous steps that exist in the conversion funnel, so that the client knows the particularities and status of the product throughout the process. We are very transparent in this regard.
We also have our own OMS that keeps the different sales channels fully synchronized, to mitigate as much as possible that there are no stock outs, since, unlike most retailers, all our product comes from our 81 physical storesTherefore, a client may be viewing it in a physical store, another in the online store or even in a Marketplace.
Once the customer selects the product he wants to buy, we try to offer him different payment methods: we accept most credit cards, Paypal, and for customers who buy high-value products (for example, jewelry), who prefer to postpone payments, we have Sequra, which allows us to approve operations in a very agile way, without affecting the conversion.
EcN: 2021 is the year of adoption of PSD2 and SCA. How has the process been for you?
JC: In this sense, we have noticed a small drop in conversion, but also the adoption of PSD2 has allowed us to greatly reduce the fraud of some of the high-risk operations, where by configuring some rules in our payment gateway, we determined which payments were sent to 3D Secure authentication and in which we processed the payment without authentication.
This process has also been quite positive through continuous dialogue with our partners.
EcN: What are customers demanding in this post-pandemic moment?
JC: The pandemic has somehow influenced customer behavior. In addition to visiting us to achieve savings compared to the purchase of a new product, he is more aware of and committed to making a responsible, sustainable consumption.
Both consumers and brands are increasingly looking for alternatives to give their products a second chance and see us as an excellent partner to lean on to manage this new market.
On the other hand, due to mobility restrictions, we have experienced a large increase in traffic and the volume of appraisals has doubled on our Express Sales website, a platform for buying products online, where customers can sell their products without moving. From home. Through it, the selling client uploads his product and a team of professionals specialized in the different categories analyzes its characteristics and status and in less than 72 hours the user obtains his appraisal, if he accepts it, he receives the money through a bank transfer . The collection of the product is made free of charge at your home on the day and time you choose.
EcN: Trends in payment methods. From Wallet to invisible payment? What trends do you see among your customers?
JC: In the last year, many of our customers have changed their payment habits in physical stores and it is becoming more and more common for them to use the well-known Wallets that have become much more widespread in order to avoid contact. Invisible payments will arrive and biometrics will increasingly be a more secure and reliable means to make payments, as is being proposed in China, however, what we perceive in our clients is that they still do not demand these types of payment.
For our part, we are exploring new forms of payment that allow us to optimize the omnichannel purchase process, so that the step of buying in physical store and online is more transparent.
Similarly, in our Fintech Dineo, for the digital customer identification processes we will use tools that allow us to identify people with greater certainty, adding agility to the processes. For the financial profiling of our clients, we use tools to automate the information of our clients’ finances and their spending preferences, which will allow us to make personalized offers in a very close time horizon.