Latest news with #CustomerRetention
FF News
10-07-2025
- Business
- FF News
UK Businesses Lose £70bn Annually Due to Lack of Accessible Payment Options, New Study From AlixPartners and Project Nemo Suggests
UK Payment Accessibility Gap is costing businesses up to £70 billion each year, based on a collaborative study conducted by Project Nemo and AlixPartners. The study emphasizes how revenue and customer retention are being impacted across industries by the absence of inclusive, user-friendly payment options. The report calls for a move toward greater financial inclusion as the UK's need for easily accessible payment methods increases. Approximately 25% of the UK population has a disability that impacts their daily life. Yet, according to this new research, 70% of disabled people frequently experience problems completing a transaction, while 70% of UK-based disabled individuals actively avoid shopping at locations where they anticipate payment difficulties. The report's findings, based on a survey of 300 UK-based disabled individuals and 50 caregivers and on the results of a focus group session, underscore the business value in implementing accessible payments services. Two-thirds (65%) of disabled people claim to have chosen to shop at retail locations specifically because of their accessible payment terminals. A further 60% have recommended businesses with accessible payment solutions to their peers. The physical and technological barriers to in-store payment services that disabled customers highlighted during the research include: Physical Accessibility: Barriers around payment terminals, including difficulty reaching card readers and navigating tight spaces. 57% of survey respondents highlighted the need for terminals or card readers to be more accessible. Disabled people have, however, found the introduction of contactless payments significantly beneficial – according to our study, it is still the highest ranked payments feature for improving accessibility. Barriers around payment terminals, including difficulty reaching card readers and navigating tight spaces. 57% of survey respondents highlighted the need for terminals or card readers to be more accessible. Disabled people have, however, found the introduction of contactless payments significantly beneficial – according to our study, it is still the highest ranked payments feature for improving accessibility. Technological Barriers: Payment terminals often have small, low-contrast text, poorly positioned screens, and lack features like audio guidance or tactile buttons. Customers with visual impairments cited issues with small, low-contrast text and poorly positioned screens. Auditory challenges were also prevalent, with deaf or hard-of-hearing customers often missing audio prompts. Payment terminals often have small, low-contrast text, poorly positioned screens, and lack features like audio guidance or tactile buttons. Customers with visual impairments cited issues with small, low-contrast text and poorly positioned screens. Auditory challenges were also prevalent, with deaf or hard-of-hearing customers often missing audio prompts. Staff Assistance: A lack of training can mean that staff are often not aware of the specific needs of disabled customers, leading to rushed transactions and a lack of patience or understanding. These barriers can cause customer avoidance, negative experiences, and reputational issues. Of the 70% of those disabled people participating in the research report who claimed to have had issues with payments services in-store, 47% stated that they left the shop without making the purchase. Commenting on the study's findings, Jonathan Hughes, a Partner and Managing Director at AlixPartners and a payments industry expert, said: 'Technology is advancing fast – and so is the opportunity to make payments more accessible for disabled customers, yet we've found that UK businesses are losing tens of billions of revenue annually by overlooking this growing market segment. It is clear that the payments industry is at the forefront of a significant opportunity to drive growth, enhance customer loyalty, and make a real difference. For example, some respondents indicated that they would benefit from using technology that allows them to leave the store and pay automatically, or from using their own smartphone to relay instructions. Ultimately, investing into inclusive payment systems makes clear business sense.' Dr. Yalini Pathy, a Director at AlixPartners, commented: 'Inclusive in-store payments systems play a huge role in creating a better experience for everyone and should be designed in a way which ensures that no customer is lost in the process. With social media and e-commerce having transformed modern retail in recent years, it has never been more important to invest in the in-store customer experience. Customers increasingly expect in-store payments to be as seamless as e-commerce transactions, but there is clearly still some catching up to do.' Joanne Dewar, Project Nemo Lead, added: 'Accessibility isn't just the right thing to do—it's a £70bn commercial opportunity hiding in plain sight. At Project Nemo, we've heard numerous real stories—from people who want to spend but are blocked by avoidable barriers. The good news is that many of the solutions are simple and already exist. With fintech innovation accelerating and inclusive design gaining ground, leaders who act now can unlock growth, trust and loyalty—and show what inclusion really looks like in practice.' Businesses need to use modern payment systems and technology that works for everyone in order to close the UK Payment Accessibility Gap. This is important for long-term growth.
Yahoo
22-05-2025
- Business
- Yahoo
Snowflake Inc (SNOW) Q1 2026 Earnings Call Highlights: Strong Revenue Growth Amid Competitive ...
Product Revenue: $997 million, up 26% year-over-year. Remaining Performance Obligations: $6.7 billion, 34% year-over-year growth. Net Revenue Retention: 124%. Non-GAAP Product Gross Margin: 75.7%. Non-GAAP Operating Margin: 9%, up 442 basis points year-over-year. Non-GAAP Adjusted Free Cash Flow Margin: 20%. Net New Customers: 451, 19% year-over-year growth. Share Repurchase: $491 million used to repurchase 3.2 million shares at an average price of $152.63 per share. Cash and Investments: $4.9 billion in cash, cash equivalents, short-term and long-term investments. Q2 Product Revenue Guidance: Between $1.035 billion and $1.04 billion, representing 25% year-over-year growth. FY26 Revenue Guidance: $4.325 billion, representing 25% year-over-year growth. FY26 Non-GAAP Product Gross Margin Guidance: Approximately 75%. FY26 Non-GAAP Operating Margin Guidance: 8%. FY26 Non-GAAP Adjusted Free Cash Flow Margin Guidance: 25%. Warning! GuruFocus has detected 6 Warning Signs with SNOW. Release Date: May 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Product revenue for Q1 was $997 million, up 26% year-over-year, showing strong growth. Remaining performance obligations totaled $6.7 billion with year-over-year growth of 34%. Net revenue retention was a healthy 124%, indicating strong customer loyalty and expansion. Snowflake added 451 net new customers in Q1, growing 19% year-over-year. The company launched over 125 product capabilities this quarter, a 100% increase over Q1 of last year. Despite strong growth, the net revenue retention rate of 124% is lower than previous highs, indicating potential challenges in upselling or expanding within existing accounts. The company faces ongoing competition from hyperscalers like Microsoft and AWS, which could impact market share. CapEx was significantly up due to new headquarters and office buildouts, which may impact short-term cash flow. The macroeconomic environment remains uncertain, which could affect future customer spending and growth. The company's operating margin guidance for the fiscal year remains unchanged, suggesting limited short-term profitability improvements. Q: How was consumption exiting the quarter and through the month of May? A: Sridhar Ramaswamy, CEO, stated that they do not comment on consumption within a quarter. However, he noted that Q1 consumption was very strong, and the results reflect this. Despite Q1 having one less day compared to the previous year, they feel very good about their consumption. Michael Scarpelli, CFO, added that the Q2 guidance is based on observed customer behaviors. Q: What are the monetization trends associated with Cortex, and how are customers incorporating it into their overall consumption of Snowflake? A: Sridhar Ramaswamy explained that customers invest in Snowflake not just for analytics and machine learning but also for future capabilities. Cortex is not sold separately; it's part of existing spend. The focus is on use cases that deliver value today, such as creating chatbots and putting business data directly into the hands of end users. The strategy is to make data AI-ready, which is seen as a direct unlock for AI applications. Q: Can you elaborate on the adoption of Snowpark and Dynamic Tables and the factors contributing to their success? A: Sridhar Ramaswamy highlighted that both product maturation and go-to-market efforts have contributed to their success. Snowflake has invested in creating products that drive utility and value, such as Snowpark and Dynamic Tables. They have also hired leaders to drive specialized sales motions, ensuring that high-value use cases are identified and implemented effectively. Q: How do you view the macroeconomic environment, and is Snowflake seeing any impact from it? A: Michael Scarpelli noted that the current macro environment has not significantly impacted Snowflake. The customer base has evolved to include larger, more mature companies that are cost-focused. While customers are always optimizing, there is no significant optimization plan like what was seen post-COVID. The strong new customer additions and RPO growth reflect customer confidence in Snowflake. Q: What is the strategy around Unistore and the positioning of serverless databases in the market? A: Sridhar Ramaswamy stated that Snowflake has been investing in transactional systems like Unistore for years, and it is doing well. They are happy with their investments in transactional stores and will continue to invest in this area as it complements their offerings. The focus is on providing a natural addition to their data platform capabilities. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
