Online or in-store, shoppers know what they want and leave if they don’t get it
They hate delivery charges and queues but love paying by card.
New research has revealed just what Australians want when they go shopping – and it's bad news for retailers that aren't able to give it to them.
The Future of Australian Retail, a study conducted on behalf of global payments platform Adyen, found that shoppers value convenience whether they're shopping online or in-store.
Of the respondents, 63% said they have left a store without making a purchase to avoid a queue. One-third of Aussie shoppers (32%) have also abandoned an online purchase because the payment took too long.
Whether shopping online or in a store, it doesn't take much for a shopper to abandon their purchase. For in-store shoppers, 22% are likely to abandon their purchases if card terminals are out of order and 20% are likely to abandon their purchases if there's no card payment option at the checkout.
For those shopping online, high delivery costs are reason enough to abandon a cart for 52% of those surveyed.
Warren Hayashi, Adyen President Asia-Pacific, says that these shopping gripes present an opportunity for retailers to offer new experiences such as click and collect.
"Keeping the customer happy is not just looking at optimising the online channel or the offline experience. It’s around offering unique experiences that take advantage of both channels," he explains.
"So click and collect, or buy online and return in store – that’s where it’s not about optimising the channel, but offering cross channel experiences. I think that’s where retailers have a big opportunity."
How we pay
Another opportunity is in payments, and it's one that Adyen is helping retailers to solve. The report found that one-third of shoppers (32%) hate lengthy online payment processes and 31% dislike the lack of relevant payment options.
"We already had our own solution for Mastercard, Visa, Amex – the global schemes" said Michel van Aalten, Adyen country manager AUNZ.
"On top of that we’re now announcing EFTPOS which is the last piece of the puzzle for a unified commerce solution. An Australian retailer now only needs one contract with Adyen to let their shoppers pay online or in-store with any of their preferred payment methods."
While shoppers are becoming increasingly demanding in the competitive retail landscape, businesses may not be responding to their demands quick enough. Recent research found that only 51% of businesses were ready and optimised to accept mobile payments, for example.
Online vs in-store
For retailers that are fearing the death of traditional retail, Hayashi says the research shows that this is "just not true".
More than half of Australian shoppers enjoy shopping in-store because they see it as a social activity. Being able to compare items (79%) and browse (72%) also rank highly as does instant gratification of being able to walk away with what you buy (67%).
"Most of the consumers that we’ve seen around the world aren’t only engaging with the online experience or the store experience," says Hayashi. "They are actually engaging with the brands and they’re actually doing that through multiple channels."
However, retailers need to recognise that while shoppers are engaging with these channels, they do not recognise the channels as separate.
What should your business do?
Aalten says that consumer behaviour is changing and retailers need to change with it.
"Consumers expect their products and services with the highest degree of availability and expect it with low shipping costs or with none at all and as soon as possible."
Shoppers are saying that they enjoy the in-store experience, but they have very different expectations.
“Aussie shoppers want convenience whether they’re in-store or online,” Aalten says. “Queues are a customer experience killer and speed is crucial when it comes to payments, which is why retailers must enable options like self-service and contactless payments at the checkout. Online shopping needs to be easy, secure and free from hidden charges.
“Most importantly, retailers must allow customers to move seamlessly between physical stores, websites and mobile apps. This unified commerce approach is the best way to delight shoppers, build loyalty and increase revenue.”
If you're looking to implement new measures but are concerned about cash flow, consider your business finance options.