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September 25, 2017 • Issue 17:09:02
New approaches to vertical markets:

Think horizontally

Online and, to a greater extent, mobile access are critical to
that redefinition. Data from a survey conducted recently
by comScore illustrates this: while total discretionary retail
spending grew 4 percent from 2016 to 2017, ecommerce
spending was up 13 percent and mobile retail spending
grew a whopping 43 percent.

This phenomenon was addressed in UPS Pulse of the
Online Shopper, Volume 1, a white paper published in June
2017 by UPS. "Although shoppers expect to use all digital
devices more in the future, the accelerated satisfaction of
smartphones not only suggests that they will likely give
a greater share of their time and their wallets[s] to this
preferred device, but points to mobile's staying power
among consumers," UPS wrote.

Raymond Pucci, Associate Director of Research Services
By Patti Murphy at Mercator Advisory Group, agreed. "Consumers want
convenience, immediacy, seamless payments, and they
SOs and merchant level salespeople (MLSs) eager to want to use their mobiles," he said. In this environment,
grow their portfolios often seek new vertical mar- ISOs and MLSs need to be asking themselves, "How can
kets, but as card acceptance grows, the search for we meet the behaviors and demands of [our merchants']
I new verticals can be tough. "The market is chang- customers as we service our merchants?" he added, noting
ing so much; we're constantly struggling to find the next that keeping tabs on the big players is one way to gather
best thing," said Dee Karawadra, President and Chief intelligence. "Look at the major restaurant chains and
Executive Officer at Impact PaySystem LLC. "The trick is general retailers," he said. "Check their websites and see
to throw everything against the wall and see what sticks." what they're offering."

Sometimes, what sticks may be a new vertical market Mobile order-ahead and pay apps gaining
opportunity. More often, however, it may be new features
and functionalities that drive greater value to clients in One trend that will smack ISOs and MLSs head-on is
existing verticals, horizontally across business needs.
It's like taking omnichannel access to the next level by
addressing both consumer and business needs.
Contributed articles inside by:
Thad Peterson, Senior Analyst at Aite Group LLC, said,
"Retailers are playing catch-up in an omnichannel world. Steven Feldshuh ...................................................................................33
That's their struggle." He noted that to succeed in this Mike Ackerman ......................................................................................36
changing environment, retailers need to regain control Adam Atlas ..............................................................................................38
of the customer experience. "They need to redefine the
shopping experience," he added.
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