“The lines between the physical and digital shopping worlds are dissolving… Retailers need to cater to shoppers by offering fast, easy and frictionless ways to pay so there are minimal lines and offer personalized recommendations and in-store deals. In other words, experience is key.” – Roelant Prins, Chief Commercial Officer at Adyen
In March 2018, 451 Research (commissioned by Adyen) conducted a survey covering 1,003 consumers (Aged 18+) and 250 retailers (B2C) in the US. The aim of the survey was to understand the consumers’ current and future shopping experiences, behaviours, preferences, and the impact of digital trends.
Over the past 12 months, 86% of consumers said that they left a store due to long wait times, which resulted in a purchase at a different retailer or no purchase at all. The survey analysis shows that retailers lost $15.8 bn in potential sales to competitors over the preceding 12 month period due to long lines. On the other hand, the retail industry lost $21.9 bn in potential sales during the same time frame as customers abandoned a purchase altogether. In addition, the industry also lost on $1.1 billion in potential sales because retailers did not support the customers’ preferred payment methods.
A key segment mentioned in the study was “Spendsetters”. This group of customers loves to use digital technology and tends to be early adopters of tech. It represents a third of all consumers and 52% of millennials. Spendsetters are poised to drive the future of retail as the key consumer group who will set shopping and spending trends.
Additional interesting findings from the report:
Spendsetter shopping behaviour
- 45% believe that brand is important and are willing to pay a premium for the experience.
- 86% have left a store due to long lines.
- 57% say the ability to check item availability online before going in-store would increase their loyalty to a retailer.
Spendsetter shopping demands
The group has 3 shopping demands:
1. Convenience (fast, easy and frictionless)
- 75% would shop more in-store with a “just walk out” payment experience.
2. Context (personalized)
- 53% prefer a store with a mobile loyalty program.
- 61% want personalized shopping experiences based on past purchases and preferences.
3. Control (interact on their terms)
- 80% are comfortable using digital wallets.
- 59% want to use a store-branded app to pay onsite.
- 46% of retail businesses are considering cashless stores.
- 67% see an increase in customers using mobile phones in-store for payments, coupons and product info.
- 64% see a need for store employees to use mobile devices to better assist customers.
There is a growing demand for immersive interactions in retail and it is shifting competition from price points to experiences. In today’s environment, retailers must compete by going beyond simply selling a product or service to delivering an experience catered to each customer’s unique needs. With physical and digital retail experiences coming together, users are expecting more intelligent, seamless, and extensive buying experiences – all personalized to their changing demands. The first step to success in this changing landscape is to know who your customers are and what they really want.
For the full report, please click here.