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

Photo: Getty
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Birmingham Labour members were almost disenfranchised, until Corbyn intervened

Newer members were to be denied a say in selecting candidates.

For decades, Labour members in Birmingham have had to wait for a year after joining the party to vote to select local candidates – unlike the six-month national rule. New ward boundaries for Birmingham City Council, the largest local authority in Europe, will be contested for the first time next year during an all-out election – and a reduction from 120 to 101 members means every Labour candidate, including sitting councillors, must be selected.

However, Labour’s Birmingham Board decided that to vote in the upcoming selection meetings, members must have been in the party for a year prior to their call for candidate applications in 2016. As a result, if you wanted to have a say, the cut-off date for being a party member was July 2015: two years ago.

It took the intervention of Jeremy Corbyn turning up at an obscure local meeting in order to vote for this two-year cut-off date to be replaced by a six-month minimum period. This has enfranchised the vast majority of Labour members, many of whom were increasingly annoyed with the original decisions taken by the Birmingham Board.

One of those who would have been disenfranchised if the board had had its way is Birmingham councillor Liz Clements, who re-joined the party as soon as Corbyn was first elected leader in 2015. Twenty years ago, she was an Oxfordshire County Councillor, and, in 1999, a European parliamentary candidate. While studying at at Oxford, in the same year as Yvette Cooper, she chaired the university Labour Club for a term in 1989. This year she was selected to contest the marginal Hall Green ward in a by-election, and, had the original rules been in place, she would have been unable to vote for herself (or anyone else) to be selected for council elections next year.

She says: “For me it was simply a matter of fairness and democracy. I couldn’t understand why the national rule wasn’t being applied. I found it very odd that I could seek selection as a councillor and get elected before I’d be eligible to vote in a selection meeting myself.”

She feels the two-year cut-off would have sent a message to new joiners and re-joiners alike that they were “second-class members”.

"During the general election we succeeded in firing up our membership with enthusiasm for the Labour manifesto and for our Labour candidates – people came out to campaign in large numbers. The proposed freeze date was divisive and would have discouraged newer members from campaigning in next year’s council elections.”

Before the Birmingham Board met, a large number of branch and constituency-level Labour groups passed motions calling for the freeze date to be scrapped. Councillor Clements was not at the Board’s meeting, so can’t comment on why they chose to ignore the members. From speaking with other party members, it's clear there was a widespread belief that this was done deliberately so unpopular councillors could cling to power.

With every ward holding selection meetings, there is am opportunity to clear out the dead weight and for fresh talent to revitalise the council, which is currently struggling to keep up with the austerity cuts imposed by central government. Some sitting councillors are retiring or facing scrutiny of their records, and may not even be shortlisted for selection. The Birmingham Board, after all, can veto any candidate before selection, including current councillors with poor attendance and casework records.

It therefore isn’t surprising that Councillor Clements doesn’t believe these rule changes will actually result in different candidates being selected. For her, it was about Labour values. “Corbyn listened to members and asserted the importance of democracy, fairness and inclusion”.

One reason it is arguable the selected candidates would remain the same is that Birmingham is struggling to attract enough people to stand for selection in the first place. There is, particularly, a shortage of women putting themselves forward. Liam Byrne MP is understood to have suggested relaxing the Labour Party rule demanding that at least one woman in selected in multi-member seats. It would be an extremely unpopular decision with many members, but there aren’t currently enough women candidates for the 32 two-member wards.

Councillor Clements says we should stick to the party’s rules as they are, but we need more women and BAME candidates. There are other options being suggested; re-opening nominations if no women have declared an interest in time, allow some wards to select two men if a neighbouring single-member ward selects a woman, relax the rule entirely, demand local parties re-advertise the space and find women candidates, or something else entirely.

Selections are underway, but most will take place in September, as many wards now need to find larger venues to hold the meetings. This will give candidates eight months to campaign before the Birmingham City Council elections next May.

Its current (and likely future) leader, John Clancy will almost certainly remain in post. Results from the general election showed many areas, previously thought to be unwinnable or marginal for Labour, have become either safe or eminently winnable. If Labour can keep itself above 40 per cent in the polls, we may well see a huge influx of new councillors representing people across Birmingham. The difference now Corbyn has stepped in, is that there is a real chance most candidates and councillors will be united by a belief in Corbyn, and his manifesto.

David Barker is a writer and journalist based in Birmingham, and press officer for Bournville Labour Party