Blinded by tech, are UK businesses forgetting the basics?

Common sense still not an optional app.

 

The nation’s “bricks and mortar” retailers are beginning to show cracks, with vast numbers looking to set up their stalls online. In fact, the UK retail industry is embracing e-commerce quicker and more successfully than any other Western European countries. But are they missing a trick by deserting the high street?

The UK has indeed taken the lead with innovation and mobile commerce is beginning to kick off: once the smartphone  was invented we had to find a use for it and this is how we started ordering Android-delivered pizza, i-phone delivered pairs of shoes or phone delivered music.

So, whether it’s a country of tech-savvies or a country with too much rain, the mere fact is that no one in Europe has done better in convincing people to shop online.

However, it’s time for the downside. Turning the pages of a couple of reports and chatting with retail, payment and regulatory gurus, it turns out that, in the rush to the web-mirage, UK businesses are forgetting something: “The basics of business”.

This is the conclusion offered by the CEO of a leading payments services provider a few days ago, in front of very full English breakfast.

The very same breakfast that went the wrong way after hearing the staggering number of e-companies, including big players, that are putting security issues linked to customers’ information right at the bottom of the agenda, or just forgetting about it altogether.

Twenty per cent of businesses surveyed by payments company Sage Pay said they are not even sure whether they are compliant or not. They don’t know if they are managing their clients’ data according to the law. Names, addresses, credit card details? Yes, maybe, we don’t really know.

It doesn’t get any more refreshing when it comes to certainties: some 20 per cent know - they are really, really sure - they are not compliant. And another third is convinced it is not important after all, despite the fact that breaches could tarnish the reputation of a business forever.

Even when focusing on the revenue side of the story not everyone seems to get it right.

Take HMV, for example: was it simply the latest high-street retailer to lose out to the power of the web and of new technologies? The truth is that the music store had been on the web for many years before being forced to go into administration.

It did jump on the right tool, but kept a bricks and mortar mentality. When shopping on the web, instead, the same clients become different clients, with speed being the first commandment. When the structure is big and heavy the jump has proved to be more risky.

What should the rules be then? The recipe for success can only come from finding where failure hides.

It’s best to start with the toughest moment of the shopping experience: paying. The majority of customers who visit the website drop out after landing on the payment page, namely after having shown the clear intention of wanting to buy the goods.

Why? Read the data and you’ll get the answer: the longer it takes to pay and the greater number of payment pages you’ve got, the greater the probability the client will get tired and leave. Some websites use up to four pages: worse than queuing ten minutes at Costa.

There are some ego-problems as well: many small merchants think it’s a smart idea to personalise the payment page with their brand. However, if your logo makes your aunty look famous, it will be difficult to convince the customer he can safely give out his data. Better leave the job of reassuring the client to the payments brands. Visa, MasterCard or PayPal inspire more trust than a beloved but unknown aunty Grace, after all.

It doesn’t end here: surprisingly, many small and medium merchants are not taking advantage of social networks. Figures show they work more than the pay-per-click strategy to drive traffic but not enough businesses have an embedded payment feature in the payment page. On the opposite side, a good number of them haven’t got a Facebook page at all.

The moral is ready to be home delivered: new technologies are there, but the human brain and a fine instinct are not an optional app. Business is – and will remain – business.

Don't forget the high street. Photograph: Getty Images

Sara Perria is the Assistant Editor for Banking and Payments, VRL Financial News

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The allegations of abuse in sport are serious – but we must guard against hysteria

This week in the media, from Castro and the student rebels, hysteria over football coaches, and Ed Balls’s ballroom exit.

From the left’s point of view, the best that can be said of Fidel Castro, who has died at 90, is that – to echo Franklin D Roosevelt on the Nicaraguan dictator Anatasio Somoza – he may have been a son of a bitch but he was our son of a bitch. Denying Castro’s dreadful record on human rights is pointless. According to the highest estimates – which include those who perished while trying to flee the regime – the death toll during Castro’s 49 years in charge was roughly 70,000. His immediate predecessor, Fulgencio Batista, whom Castro overthrew, murdered, again according to the highest estimates, 20,000 but he ruled for a mere seven years. For both men, you can find considerably lower figures, sometimes in the hundreds. It depends on the politics of the estimator, which shows the absurdity of such reckoning.

 

Murder is murder

What is certain is that Batista ran a corrupt regime with close links to the American Mafia and presided over outrageous inequalities. Even President Kennedy, who ­approved a failed military invasion of Cuba in 1960, said that, on Batista’s record, “I am in agreement with the first Cuban revolutionaries”. Castro, on the other hand, created a far more equal society where illiteracy was almost wiped out, and free health care brought life expectancy up to levels comparable to those in the US and western Europe. You could say that the numbers saved from early deaths by Cuban medicine under Castro easily exceeded the numbers that faced firing squads.

But nothing excuses torture, murder and political imprisonment. There isn’t a celestial balance sheet that weighs atrocities against either the freedoms from ignorance and disease that the left favours or the freedoms to make money and hold private property that the right prefers. We should argue, as people always will, about which freedoms matter most. We should be united in condemning large-scale state brutality whatever its source.

 

Spirit of ʼ68

Though his regime became an ally (or, more precisely, a client) of the Soviet Union, Castro wasn’t a communist and he didn’t lead a communist uprising. This point is crucial to understanding his attraction to the mostly middle-class student rebels in Europe and America who became known as the ’68ers.

To them, communist rulers in eastern European were as uninspiring as the cautious centrists who hogged power in Western democracies. They were all grey men in suits. Castro had led a guerrilla army and wore battle fatigues. As the French writer Régis Debray explained in Revolution in the Revolution? – a book revered among the students – Castro’s band of revolutionaries didn’t start with a political programme; they developed one during “the struggle”. Their ideology grew organically in the mountains of Cuba’s Sierra Maestra.

This do-it-yourself approach seemed liberating to idealistic young people who didn’t want to bother with the tedious mechanics of bourgeois democracy or the dreary texts of Marxism-Leninism. They had permission for “direct action” whenever they felt like it without needing to ­formulate aims and objectives. They couldn’t, unfortunately, see their way to forming a guerrilla army in the Scottish Highlands or the Brecon Beacons but they could occupy a university refectory or two in Colchester or Coventry.

 

Caution over coaches

Commenting on Radio 5 Live on the case of Barry Bennell, the Crewe Alexandra coach convicted in 1998 of sexual offences against boys aged nine to 15 (the case came to fresh attention because several former professional football players went public about the abuse), an academic said that 5 per cent of boys reported being sexually abused in sport. “That’s one boy on every football pitch, every cricket pitch, every rugby pitch in the country,” he added.

This is precisely the kind of statement that turns perfectly reasonable concerns about inadequate vigilance into public hysteria. The figure comes from an online survey carried out in 2011 by the University of Edinburgh for the NSPCC. The sample of 6,000 was self-selected from emails to 250,000 students aged 18 to 22, who were asked about their experiences of physical, emotional and sexual harm in sport while aged 16 or under. “We do not make claims for the representativeness of our sample,” the researchers state.

Even if 5 per cent is accurate, the suggestion that abusers stalk every playing field in the land is preposterous. After the Jimmy Savile revelations, just about every DJ from the 1960s and 1970s fell under suspicion – along with other prominent figures, including ex-PMs – and some were wrongly arrested. Let’s hope something similar doesn’t happen to football coaches.

 

Shut up, Tony

Brexit “can be stopped”, Tony Blair told this magazine last week. No doubt it can, but I do wish Blair and other prominent Remain supporters would shut up about it. The Brexiteers have spent 20 years presenting themselves as victims of an elite conspiracy to silence them. Committed to this image, they cannot now behave with the grace usually expected of winners. Rather, they must behave as though convinced that the prize will shortly be snatched from them, and treat any statement from Remainers, no matter how innocuous, with suspicion and resentment. Given enough rope, they will, one can reasonably hope, eventually hang themselves.

 

Strictly Balls

Perhaps, however, Nigel Farage et al are justified in their paranoia. As I observed here last week, the viewers of Strictly Come Dancing, in the spirit of voters who backed Brexit and Donald Trump, struck more blows against elite experts by keeping Ed Balls in the competition even after judges gave him abysmal ratings. Now it is all over. The BBC contrived a “dance-off” in which only the judges’ votes counted. 

Peter Wilby was editor of the Independent on Sunday from 1995 to 1996 and of the New Statesman from 1998 to 2005. He writes the weekly First Thoughts column for the NS.

This article first appeared in the 01 December 2016 issue of the New Statesman, Age of outrage