eKourier April 2019

FINANCE

HOW KSS STORERS PAY

We recently completed a report on 58,000 payment transactions processed in January 2019 to see how KSS stores pay. *Auto Direct Debit: recurring payments from a Bank Account. *Credit Card – Auto Pay: recurring payments from a Credit Card *Credit Card – Online: Credit Card payments made from our website *Credit Card – Manual: Credit Card payments processed manually by Teams. *Direct deposit: Bank Transfers from customers Bank Account.

68% and 50% of payments were made by a card in Australia and New Zealand respectively, however only half of that were recurring payments. The recurring payment show most of our centres are around the 30% mark. Both KSS and customers would enjoy huge benefits if we were able to encourage more customers to set up recurring payments either via a Credit Card or a Bank Account. THE FUTURE RECURRING PAYMENT SETUP FROM THE KSS WEBSITE: There is an impression from customers that the recurring payment would be automatically set up when they pay the first rental fee online from our website. However, this is not the case. We are working with CBA to understand our options and are in a stage of planning and developing to enable this feature. This would improve our recurring payment numbers greatly. Watch this space!

BENEFITS FOR THE CUSTOMER Set and Forget: allows customers to enjoy our services without unnecessary payment distractions. Simplicity and conveniences: customers only enter their details once which removes decision barriers and encourages continued spending. Avoid unnecessary charges e.g. late fees. No suspension at gate or unit locked due to missed or late payments. Avoid emotional breakdown when customer’s goods are sold due to missed payments.

BENEFITS FOR KSS Better experience for our customers. Decrease missed or late payments and improve cash flow. Improve customer relationships: Teams can focus on having positive conversations with customers on our services instead of having awkward conversations chasing payments. Increase customer retention: given the set and forget nature of recurring payments, the payments are out of the customer’s mind, allowing them to enjoy our services. Reduce associated costs, risks and Team efforts on delinquent customers and banking process, reconciliations and cash handling.

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6 Kennards Kourier April 2019