Fintech platform Adyen has commissioned new independent research showing the changing expectations of Australian consumers and key retail trends impacting the retail sector, including insights that will help retailers to shape, grow and realize their ambitions for 2023 and beyond.
The Adyen Australia 2022 Retail report presents the results of a survey of over 50,000 respondents (consumers and businesses) in 26 countries, including 2,000 Australian adults and 502 Australian businesses. The report highlights key shopping and payment trends, as well as the importance of unified commerce in ensuring the resilience and adaptability of the retail industry in 2022 and beyond.
“For Australian consumers, it’s all about the experience. In the past five years alone, we’ve seen consumer preference for shopping channels and payment methods shift from one to the other, but there are two things that remain constant: is the reign of seamless experiences with cashless as king. Retailers who understand and adapt to this, regardless of platform or payment method, will be well positioned to take on the next wave of retail innovation,” said Hayley Fisher, national lead for Australia and New Zealand at Adyen.
As Australians have become more tech-savvy, consumers still prefer to shop in a physical store rather than online, with 73% of respondents choosing to shop in a physical store, or 14% of more than any other country surveyed. Since the pandemic and ongoing shutdowns, 34% of consumers say they have a new appreciation for being able to physically touch, smell, or try on products in-store before buying them.
Although consumers continue to embrace e-commerce and shopping online, more than two-thirds of consumers (67%) say brick-and-mortar stores are an important touchpoint, even if they shop online with the same retailer . 48% say they like going to the store for customer service or to get help with a product they couldn’t get online and 51% are more loyal to retailers that have physical stores and online options.
More than two decades after the emergence of e-commerce, the pace of digital retail evolution continues to accelerate. As data and analytics grow, so do the opportunities for retailers to extract value through innovative products and services. 20 percent or more.
According to the research, the key to realizing Australia’s retail ambitions is investing in the digital tools that will improve operations and attract customers at the same time. The pandemic has proven that consumers want businesses to embrace technology that will improve their in-store experience, including loyalty programs.
More than half of Australian consumers (58%) believe retailers should use technology to make their loyalty and rewards program simpler and more effective. 50% of consumers said they would be more likely to shop at a retailer if their loyalty program worked automatically through their payment card, but only a handful of retailers are using this innovation.
With a majority of Australians preferring to shop in physical stores, retailers that offer unique in-store experiences are highly valued. In fact, the majority of Australians say they are more loyal to retailers that have physical stores and online options. Most Australians (53%) would be more loyal to businesses that allow them to buy items online and return them in store or let them buy an item that is out of stock in store but available online, and return it. have it sent directly to their home. (56 percent).
Experience matters to Australians, with shoppers citing an appreciation for retailers that provide a seamless shopping experience across all touchpoints. As shoppers continue to prioritize the in-store experience, retailers need to mimic physical store experiences online as much as possible to show they understand their customers’ preferences.
The report also highlights Australians’ low tolerance for bad shopping experiences. 66% of Australians said they would avoid buying from businesses after a bad shopping experience (whether online or in-store) and 54% of Australians want retailers to be able to sell across multiple channels. Australian retailers are also aware of these heightened consumer expectations, with 56% of businesses surveyed in Australia acknowledging that their customers are less tolerant of bad experiences.
“While Australians have been quick to embrace e-commerce during the pandemic, it hasn’t diminished their love of in-store shopping,” Fisher added. “On the contrary, Australians now expect retailers to offer the best of both worlds. To continue to remain nimble and competitive, retailers must strive to meet these consumer expectations, delivering exceptional customer experiences both in-store and online through unified commerce.
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