By Chris Burnside, Account Manager, Specialty Retail, UK & Nordics Global Sales & Verticals, Worldline
COVID-19 is constantly shifting consumer shopping habits from on-site to online, meaning that eCommerce is becoming the main driver of physical retailers’ strategies. Changes in demographics, innovations in payments, and evolving customer needs, as well as the current social isolation that the nation is dealing with are all shaping the retail sector of today.
Online shopping, price-comparison search engines, online coupons and cashback deals have created a new breed of consumers. These shoppers are smart, tech-savvy, hungry for deals and conduct their own research before making purchases. However, these connected customers tend to be bigger shoppers and might potentially become lifelong advocates (including via social media) to bring in more following for a specific brand.
Therefore, retailers must be well prepared to survive in these lucrative, yet challenging times as online purchases surge and consumers demand a way of paying for goods online.
Changing customer expectations
Today’s customers are becoming increasingly more omnichannel in the way they shop and expect to be dazzled by interactivity and connected services, while retaining the simplicity and seamlessness of payments. These shoppers also expect on-site shopping to allow them to mix online and in-store purchases, pick-up of purchased goods, and transparent refund and return policies.
Some retailers might ask what the benefits are of bringing in such demanding customers. However, these types of shoppers can increase a retailer’s profits substantially as they have been proven to deliver a higher value purchase track record compared to regular or smaller ticket item shoppers.
If any physical retailers are in doubt, they should simply consider the benefits that go along with becoming connected and offering their goods online. Firstly, online shopping offers a greater variety of ways to target individuals’ needs, from targeted ads and special occasions coupons to personalised gifts for shoppers that drives sales and generates new and returning customers.
The surging power of online
The other massive benefit is the ability to offer more online. Online is increasingly what more and more customers today are looking for. As more purchases are made online, brands must be mindful that physical retail space is getting increasingly more expensive, especially in top locations. Therefore, with an eCommerce model, businesses can choose a central warehouse located outside the city.
Another vital perk of going digital is the potential to establish direct engagement with your audience via social media. According to research by Facebook, more than 80% of people use Instagram to research their potential purchases and discover new trends and products.
When entering the world of eCommerce there are several challenges that retailers must plan for. These include, online fraud, a lack of local payment methods, no direct support for clients in case of issues or questions, lower authorisation rates and potential IT issues. However, a reliable partner can help mitigate these risks and help retailers to effectively design the registration flow and the checkout experience to retain paying customers and limit fraudsters’ activities.
Such providers have in-store solutions that provide a unified and safe payment flow that immerses and connects the buyer and the seller in this financial journey. It constitutes a set of comprehensive hardware and software-based solutions to open up retailers to more customers and boost their sales and conversion levels. Bridging the gap between online and physical stores by introducing digital kiosks, touch screens and VR experiences to POS transform the shops of today into the shops of the future.
The value of strong acquiring capabilities
Alongside omnichannel, it cannot be underestimated the importance of also offering effective, fast, and reliable acquiring services that are tailored to retailers needs based on regions and their risk appetite. It means the capacity to implement smart routing and switching to effectively optimise authorisation levels.
When offering their products globally, retailers must also consider the importance of having a well-thought out set of local payment methods. This is because one of the major differences between physical retail and online shopping is that once in the shop, customers are likely to pay for the products they really want whether by card or cash. Online sales, especially on local markets can be more complex. This is because they will typically choose a specific local payment method that they are accustomed to, such as BLIK in Poland, Sofort in Germany or iDEAL in the Netherlands. By not offering these, it can be a deal-breaker causing people to drop sales and search for stores that have these options at checkout.
The right acquiring capabilities, by having a global presence and massive knowledge base, can offer pre-implementation support to retail owners and guide them through the implementation process itself. Therefore, with a massive infrastructure and immense experience in the payments industry behind them, the right providers have the capacity to serve customers around the world and provide a seamless payment experience of the future, right here and right now.