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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Meet the man forcing the Government to reveal its plans for Brexit

Grahame Pigney hopes to "peel away" the secrecy of negotiations. 

Not so long ago, the UK Government was blissfully unaware of Grahame Pigney, a British man living in semi-retirement, in France. But then came Brexit. 

Pigney, who had been campaigning for Britain to stay in the EU, was devastated. But after a few days, he picked himself up and started monitoring the news. He was alarmed to discover the Government thought it could trigger Article 50 without the express permission of Parliament. 

He wasn’t alone. Gina Miller, an investor, was equally incensed and decided to take the Government to court. Pigney (pictured below) set up a crowdfunding campaign to support the case, The People’s Challenge. So far, the campaign has raised more than £100,000. 

This week, the campaign scored its first major victory, when a judge overruled the Government’s attempts to keep its legal defence secret. The case itself will be held in October. 

At a time when the minister for Brexit, David Davis, can only say it means “leaving the EU”, the defence sheds some light on the Government’s thinking. 

For example, it is clear that despite suggestions that Article 50 will be triggered in early 2017, the Government could be easily persuaded to shift the date: 

"The appropriate point at which to issue the notification under Article 50 is a matter of high, if not the highest, policy; a polycentric decision based upon a multitude of domestic and foreign policy and political concerns for which the expertise of Ministers and their officials are particularly well suited an the Courts ill-suited.”

It is also, despite Theresa May’s trips to Scotland, not a power that the Government is willing to share. In response to Pigney’s argument that triggering Article 50 without parliamentary approval impinges on Scotland’s separate body of law, it stated bluntly: “The conduct of foreign relations is a matter expressly reserved such that the devolved legislatures have no competence over it.”

Although Pigney is one of the millions of expats left in jeopardy by Brexit, he tells The Staggers he is not worried about his family. 

Instead, he says it is a matter of principle, because Parliament should be sovereign: “I am not a quitter.” 

While Davis argues he cannot reveal any information about Brexit negotiations without jeopardising them, Pigney thinks the Brexiteers simply “haven’t got anything”. 

A former union negotiator, he understands why Davis doesn’t want to reveal the details, but finds the idea of not even discussing the final goals is baffling: “When I was a union member, we wouldn’t tell them how everything was going but you did agree what the targets were that you were going for.”

He said: “The significance of what happened is we were able to peel away a layer of Government secrecy. One of the things that has characterised this Government is they want to keep everything secret.”