This document discusses how payments providers can help small businesses build their online reputation and social proof through integrating social sharing features into payment transactions. It argues that customers are most motivated to share their experiences at the moment of purchase when emotions are strong. By designing reviews, recommendations and referrals directly into the payments flow, businesses can acquire trusted social proof from real customers to attract new business through their strongest social networks. This turns payments from a commodity transaction into a platform for social reputation growth.

1. HELPING
BUSINESSES
BUILD
SOCIAL
REPUTATION
THROUGH
PAYMENTS
Stoyan
Kenderov
Feb
12,
2013

2. For small businesses off-line word
of mouth remains biggest channel
100%
of
small
businesses
rely
on
word
of
mouth
for
new
customers.
Source:
Wells
Fargo
45%
spent
no
money
on
adverSsing
last
year.
Source:
Wells
Fargo
10%
of
their
markeSng
budgets
for
online
adverSsing.
Half
of
small
businesses
spend
less
than
Source:
NIelsen
Online

3. Yet online customer reviews drive
new business
70%
of
online
users
read
online
reviews.
Source:
Forrester
Research
58%
of
social
media
users
say
they
write
product
reviews
to
protect
others
from
bad
experiences.
Source:
Nielsen
study
on
Social
Impact
on
brands.
Consumers
are
55%
more
likely
to
buy
a
product
with
high
product
raSngs.
Source:
eConsultancy,
Jul
2010

4. And every additional review ”★”
drives hard $
“High
rankings
represent
at
least
25%
increase
in
sales.”
Source:
New
York
Times
“A
one-­‐star
increase
in
Yelp
raSng
leads
to
a
5-­‐9%
increase
in
revenue”
Source:
HBR
paper:
Reviews,
ReputaJon,
and
Revenue:
The
Case
of
Yelp.com

5. Building online reputation is not easy

6. Which reviews do we trust
✔

7. Which reviews do we trust

8. Not easy for customers to find
authentic reviews
✔

9. That’s why we trust close friends the most
Q6:
Do
you
trust
online
customer
reviews
as
much
as
personal
recommendaSons?
72%
of
consumers
trust
online
reviews
as
much
as
personal
recommendaSons.
71%
of
all
consumers
believe
that
the
personal
reviews
of
their
family
members
have
a
great
amount
of
influence
on
their
buying
habits.
90%
of
all
consumers
trust
the
Source:
Local
Consumer
Review
Survey
(2012)
reviews
of
people
they
are
familiar
with.

10. The payments industry can help
businesses acquire reputation from
the most trusted source (= clients) and
share that with clients’ friends
1. Every
payment
transacSon
is
a
vote
2. Reviews
and
recommendaSons
from
customers
who
really
bough
are
trusted
more
that
anonymous
reviews
3. Customers
don’t
mind
helping
friends
by
raSng
a
business
or
product
they
just
bought

11. If we extended the traditional
commodity payment transactions …
Never
miss
a
sale
Don’t
need
to
worry
about
cash
now
Expand
payment
opSons
Get
paid
faster
CHOICE
Pay
a
lower
rates,
%
Earn
more
rewards,
lower
APR
CHOICE

12. …with a seamless social interaction
Rate
my
business/service
Express
my
idenSty
Recommend
me
Share
an
experience
Visit
me
again
Pass
on
a
good
deal
to
my
friends
Give
me
specific
feedback
Help
my
friends
make
a
beger
choice
Feel
part
of
a
group
CHOICE
Helps
me
grow
my
business
Strengthens
my
relaSonships
CHOICE

13. THE
REPUTATION
OF
THE
BUSINESS
WILL
GROWS
AND
BECOME
SHARABLE
AS
“VOICE
OF
CUSTOMER”

14. Why would that work?
?

15. EMOTIONS

16. Emotions are motives for action
Arousal
Energized
Anger
Curiosity
FrustraSon
Pride
Disappointment
Something’s
new
Fear
of
the
unknown
AcSon
Blame
Surprise
Valence
Negative Positive
Puzzled
Apathy
Contentment
Grief
RelaxaSon
Invisible
interface
Shame
Calm

17. Strong emotions motivate us to share
Ac-ons
Arousal
Express
my
idenSty
Energized
Curiosity
Share
an
experience
Anger
FrustraSon
Pride
Pass
on
a
good
deal
to
my
friends
Disappointment
Something’s
new
Fear
of
the
unknown
AcSon
Help
my
friends
make
a
beger
choice
Blame
Surprise
Figure
something
out
Feel
part
of
a
group
Valence
Negative Positive
Puzzled
Contentment
Apathy
RelaxaSon
Grief
Invisible
interface
Shame
Calm

18. At the point of sale look for strong emotions and
design sharing into the payments interaction to
harness the motivation to share
Arousal
Energized
Rate
my
business/service
Curiosity
Anger
FrustraSon
Pride
Recommend
me
Disappointment
Something’s
new
Fear
of
the
unknown
AcSon
Visit
me
again
Surprise
Blame
Figure
something
out
Give
me
specific
feedback
Valence
Negative Positive
Puzzled
Contentment
Apathy
RelaxaSon
Grief
Invisible
interface
Shame
Calm

19. Thus, from a commodity…

20. …payments transactions become a
platform for social reputation sharing
GROW
YOUR
BUSINESS
Get
10%
off
when
you
Let
your
customers
share
with
their
friends

21. The future of payments is social
1. Close
to
the
moment
of
truth
and
trust
2. Real
customers
rather
than
paid
reviewers
3. Customers
will
share
any
way

22. The
Social
Payments
Recipe
• Get
closer
to
the
moment
of
truth
• Understand
what
emoSons
surround
that
business
• Provide
a
seamless
link
from
transacSon
to
reviews
and
referrals
• Let
people
share
on
their
preferred
social
networks
(no
need
to
roll
your
own)

23. Thank
you!
Stoyan
Kenderov
Head
of
Mobile
and
Social
Intuit,
Inc.
Stoyan_kenderov@intuit.com