- Consumer preferences are drastically changing due to post-pandemic shopping trends, rising inflation, and economic uncertainty.
- Nearly 80% of shoppers now spend more time bargain-hunting and searching for deals.
- To stay competitive, retailers are leveraging data-rich technology to personalize the customer experience.
By Brian Dammeir, global head of unified commerce at Adyen
What do customers want? That’s the million-dollar question for today’s commerce executives.
Amid economic uncertainty, business leaders are looking to cut costs and improve financial outcomes for their brands. But they also know that shopper retention is critical to their success, which means putting customer needs front and center can help them drive revenue and boost sales.
Of course, it’s not that simple. Consumers aren’t shopping like they used to — according to the Global Retail Report from financial technology platform Adyen, nearly 80% of shoppers are now spending more time bargain hunting and searching for deals. And more than 40% of retailers have seen a decrease in customer loyalty due to rising inflation. But that’s not the only challenge in retailers’ paths. For years, organizations and consumers alike have felt the burden of legacy systems and insufficient financial technology: Inefficient checkout experiences, lack of customer-focused customization, and other challenges have made it difficult for brands to effectively meet customer needs — and their own financial goals.
A new wave of technology has entered the retail landscape. These human-centered and data-rich technologies have the potential to help businesses stay ahead of the curve and meet customer needs with technological sophistication and impactful agility.
Below are three ways omnichannel businesses can leverage financial technology platforms embedded with smart data analytics to power their personalization strategy.
1. Let your shoppers seamlessly move between channels
Today’s shopping journey is rarely linear. A customer may first see a product on social media, take a closer look at the item in a store, and eventually make a purchase through a retailer’s website. No matter which channels it takes to inform a purchase decision, shoppers want a simple, streamlined, and flexible purchasing experience. Three-fifths of customers say they’d be more loyal to retailers that let them buy online and return in-store, and 66% say they love the ease of purchasing an out-of-stock item in-store and having it shipped to their home.
With these sentiments in mind, businesses are realizing the value of unified commerce solutions. Last year, US retailers that connected their online and offline payments in one system saw a 16% revenue boost, and retailers that used unified commerce in 2022 saw an 8% increase in revenue growth. Data gleaned from a financial technology platform can benefit businesses by offering insight into the 360 degrees of a shopper’s journey as they transact between various channels. This data can also be used to offer personalized experiences and deepen relationships with customers. Integrating qualitative and quantitative data into customer profiles, for example, allows businesses to add a more human element to preferred payment transactions and other touch points along the purchase journey.
2. Reward customer loyalty with increased personalization
Facing decreased purchasing power due to inflation, today’s shoppers prioritize value, convenience, and affordability. They’re spending less, but they want more: These consumers increasingly expect tailored rewards and experiences for their continued loyalty when it comes to both online and in-person shopping.
These same customers are also willing to go the extra mile for these rewards, with nearly 70% saying they would download a retailer’s app for improved loyalty bonuses. Yet more than 40% of retailers in the US do not have a loyalty program in place, and nearly 50% struggle to categorize consumers properly in order to grant them a personalized shopping experience.
The retailers that leverage data to meet these customer expectations will have a competitive advantage against other brands, as customization is a proven path to increased consumer loyalty and higher profits. Using actionable insights, businesses can design strategies to give shoppers better value for their money, such as tailored loyalty programs, promotions, and perks.
Last year, US retailers that connected their online and offline payments in one system saw a 16% revenue boost, and retailers that used unified commerce in 2022 saw an 8% increase in revenue growth.
3. Consolidate payments and commerce technology across channels
Fragmented payment ecosystems are a pain point for many retail businesses, many of whom are struggling under the weight of managing disparate payment platforms. Just 25% of businesses surveyed by Adyen are equipped with a centralized database that shows sales from all channels.
To eliminate these complexities, retailers can consolidate customer payments and data insights under a single unified technology platform. Doing so is a win for brands because it helps decrease IT costs and complexities. Meanwhile, customers also benefit from a more streamlined shopping and payment experience. More businesses are seeing these benefits too, with 35% planning to invest in technology that connects their backend systems with customer-facing payment channels.
Unified commerce solutions centralize real-time data from various channels, payment methods, regions, and brands, allowing businesses to better manage and draw more accurate insights from their payments data. With these insights, retailers are better equipped to understand important information about their shoppers — such as what they’re searching for, when and where they want to get it, and how they want to pay for it.
Of course, technology is the engine behind an already well-oiled machine. Without a team of talented people and streamlined processes, technology is ineffective. But with unified commerce tech that is easy-to-use and aligns with already-established workflows, retailers can stay ahead of future trends and scale their business forward.
Click here to access the full report and find out how Adyen’s unified technology solutions can help your business achieve financial success.
This post was created by Insider Studios with Adyen.
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