Commerce Feed: Issue No. 19 – August 2022
Consumer Spending Strained
Spending is down in the US for household items like furniture and electronics, as food, gasoline and other essentials have become more expensive. Retailers including Walmart and Best Buy are expecting to feel the pinch.
DCA Insight:
The change in spending habits is uneven. Many people are dining out and traveling more after not being able to during the height of the pandemic. And high-income individuals continue to purchase items they desire. But for the rank and file, sentiment about the economy appears pessimistic.
Open Questions for Leaders:
- Should loyalty programs innovate to preserve middle-income consumer spending on durables, or shift to focus on essentials?
- Will high-income consumers eventually respond to continued inflation, and if so, how can digital marketing and loyalty programs get ahead of that shift?
- What data might provide leading indicators for the next shift, since consumer sentiment and behavior seem poised to keep changing?
Related DCA Resource:
Commerce Code Ep. 123: The Economy & The Consumer – On this episode of Commerce Code, Dan Currell explores consumer behavior in the current, volatile economy with Tim Lee of Full Stack Economics. Full Stack Economics is an independent publication based in Washington, D.C.
Demand for Luxury Goods Soars
Name-brand handbags and jewelry are selling fast. Many lux brands have more than doubled their sales in the U.S. since the pandemic began.
DCA Insight:
Wealthy consumers are of course more immune to challenges facing most shoppers. Walmart reports consumers have pared back on buying clothes, and Amazon has indicated a recent e-commerce slow down. Look for the dichotomy to continue in our new-normal marketplace.
Open Questions for Leaders:
- How can luxury goods merchants navigate the difficult distribution landscape of 2022?
- Will high-income consumers eventually respond to continued inflation, and if so, how can digital marketing and loyalty programs get ahead of that shift?
- 2021 saw a Holiday spending season that mirrored 2019. What will the 2022 shopping season look like?
Related DCA Resource:
Commerce Code Ep. 91: Loyalty Programs & The 2021 Holiday Shopper – On this episode of Commerce Code, we dig deeper into the 2021 holiday luxury shopper and the performance of loyalty programs paired with luxury products with James Berry, Commercial Director, Valuedynamx.
Data Security Key to Consumer Trust
Digital banking tools increasingly rely on advanced security techniques to earn consumers’ trust, a PYMNTS’ research report recently revealed. Biometrics and password-less logins lead the list of consumer preferences.
DCA Insight:
The pandemic has spurred reliance on digital making tools. Fewer customers are using branches, and more count on mobile apps. Most consumers now connect with their accounts digitally. Consumers increasingly are looking for and value information about how their transaction are secured, as this research confirms.
Open Questions for Leaders:
- How can digital-only FI’s raise awareness of digital security and thus, have consumer trust in digital banking?
- What are some ways that AI Fraud Detection can improve in the mobile wallet space?
- What are some aspects of banking that currently require a branch or in-person experience, and should / can those go digital-only?
Related DCA Resource:
Commerce Code Episode 114: Considering the Future of Financial Data: In this episode of Commerce Code, Dan Currell, CEO Digital Commerce Alliance, reflects on key points from DCA’s Financial Data Forum where industry executives discussed best practices in financial data and the future of data security.
Economic Output Down, Job Market Strong
In the first half of 2022, output fell but companies were still hiring. While some economists fear a recession is imminent, others maintain that without job loss, a downturn’s not in the cards.
DCA Insight:
The correlation in this pandemic cycle hasn’t been seen before. Inflation rates and interest rates are rising. At the same time payrolls are increasing, open jobs remain unfilled, and fewer Americans collect federal unemployment checks. We might not know what to call the unusual period we’re experiencing now, but we’re learning that economic indicators don’t always move in sync.
EPISODE 127: Expanding the Spending Power of Loyalty Rewards
On this episode of Commerce Code, we speak with Simon Goldstein, Founder & CEO of Rethink Loyalty, and discuss the evolution of loyalty rewards.
Digital Commerce Alliance members include the largest and most innovative companies in fin-tech, payments, retail, e-commerce and mobile wallets. Members include Microsoft, Rakuten, UBS, RBC, Mastercard, Discover, Valuedynamx, FIS, Sam’s Club, TransUnion, Augeo, Bank of America and many more in 17 countries and 4 continents.
We are bringing their insights from around the world straight to you in an informative podcast called Commerce Code. The podcast features insights, interviews and the latest news from DCA members worldwide. Stay connected and subscribe to DCA’s Commerce Code.
New Member Pipl Joins Digital Commerce Alliance!
Pipl is the identity trust company. They make sure no one pretends to be you. Pipl uses multivariate linking to establish deep connections among more than 100 billion disparate identifiers—email, mobile phone, social media and other data that spans the globe. Then they look at the big picture to derive identity trust. Pipl’s solutions allow organizations to provide frictionless customer experiences and approve more transactions with greater confidence and speed.
For more information, visit https://www.pipl.com.
FDF May Webinar
Open Banking Data and Crypto: Integration and Best Practices
Tuesday, May 24th | 10am – 11am PST
Operating at the forefront of financial technology, cryptocurrencies and chains are set to become the next standard in financial data transmission. Novel technologies, though, are always built on solid foundations. Learn about how open-banking APIs are helping crypto become mainstream.
Speaker | Pietro Grandinetti – Chief Technology Officer, Pentadata
Financial Data Forum (a division of DCA) hosts a live, interactive webinar each quarter featuring speakers from some of the world’s most influential companies. They share insights on important and relevant topics for your business—including the impact of Covid-19 on consumer credit behavior, mobile wallet adoption, card-linking and lending trends. The webinar is always free to members and non-members are invited to attend at $99 per registration. Members and non-members are encouraged to register now as space is limited!
Check Back Soon for Infomation on our August Webinar!
Check Back Soon for Our In-person Fall Conferences!
Upcoming Conferences
CardLinx Europe Forum
Tuesday, February 22, 2022 | Via Zoom
Card-linking & Loyalty: What Drives Interoperability (and Eliminates Friction)?
Digital Commerce Alliance Forum
Tuesday, March 22, 2022 | San Francisco, CA
Bitcoin and Cryptocurrency: How the Roles of Currency and Technology Are Evolving
Mobile Wallet Forum
Tuesday, April 26, 2022 | Las Vegas, NV
Mobile Wallets and Contactless Payments: What’s Driving the Next Generation of Mobile Commerce?
Financial Data Forum
Tuesday, May 17, 2021 | Washington, DC
