Adyen Agility Report Australia ~ Chapter Two
Through thick and thin
Understanding consumer loyalty
The coronavirus pandemic has encouraged consumers to reassess their priorities. Initially, many focused on securing the bare essentials - which explains the stockpiling of toilet paper and limits on basic goods. But in the shadow of a global recession, it’s understandable that consumers are cautious. As consumer confidence falters, each purchase takes on a greater significance. But our research finds that, if you win a customer’s loyalty, they’ll stick by you.
“To see the level of positive feedback we’ve had from new and returning customers when we went the extra mile, particularly through what has been a really stressful time, really highlights the value in creating a personalised, and service-led experience online and blending those two worlds.”
Alexa Anastassi ~ Head of Digital Product, Jurlique
Inspiring loyalty
Taking it to the next level
One stark finding from the research is that we don’t tolerate bad experiences – 72% of Aussies won’t return to a retailer if they’ve had a bad experience either in-store or online. But they do also reward those who help them out, particularly when times are tough. The vast majority say they will continue to support the retailers they relied on during the pandemic. And given the love for physical stores, it's also significant that most prefer to shop with retailers located nearby because they want them to stay open.
“We have a very close relationship with our customers. They know the in-store consultants by name and vice versa. So our challenge was: How do we bring that genuine and beautiful in-store experience to our digital channels? We’ve launched new customer service initiatives such as live chats and video consultations, curbside pick-up, and click and collect. In this way, we can be sure our customers have uninterrupted access to both our products and expertise.”
Robbie Tutt ~ GM Digital and Technology, Aesop
% that will continue shopping with and supporting retailers they relied on during the pandemic.
% that will shop more with retailers located near them because they want them to stay open.
Global
73%
67%
USA
69%
63%
UK
70%
59%
Australia
78%
71%
Male
79%
73%
Female
77%
70%
18 - 34 yrs
73%
62%
35 - 54 yrs
75%
69%
55+ yrs
84%
81%
feel more loyal to brands that have shops near them, even if they don’t go in, they will shop online with them
shopped closer to home during the pandemic
Although the love for physical stores runs deep, it’s not a case of ‘build it and they will come’. Loyalty is something that retailers need to continually work on. In fact, two thirds of respondents say that retailers need to improve the ways they reward shoppers for shopping with them – a sentiment shown equally across age groups. This is where unified commerce can really pay dividends for retailers. It enables a seamless link between channels – opening up new shopping experiences that are proven to boost loyalty – for example, the ability to check if a store has stock before leaving the home. It also creates new avenues to reward repeat customers.
60% say they would be more loyal to retailers if they would let them purchase an out-of-stock item in-store and have it delivered to their home
Male
56%
Female
64%
18 - 34 yrs
70%
35 - 54 yrs
63%
55+ yrs
49%
53% say they would be more loyal to a retailer that lets them buy things online and return them in-store
39% would be more loyal to a retailer that enabled them to shop in-store and finish shopping online, or vice versa
Male
48%
37%
Female
58%
41%
18 - 34 yrs
61%
50%
35 - 54 yrs
59%
46%
55+ yrs
42%
23%
Loyalty powered by payment technology
The beauty of unified commerce is that your channels are connected in one system, making it possible to run cross-channel loyalty programs. For example, a customer’s payment method can become their loyalty card, which can automatically trigger discounts, tailored recommendations, and other rewards. It means you don’t need to rely on your sales staff to recognise regular customers and you can roll out the red carpet online as well. So even when you can’t meet face-to-face, your customers still feel special.
Looking further afield: loyalty
Australians are much more likely to value retailers that have a store near them. In fact, 71% of Aussies like to shop with retailers located nearby because they want them to stay open, compared to 63% of Americans, 59% of Brits and the global average of 67%. Only 36% of Brits say they feel loyal to brands who have shops nearby, compared to 45% of Australians and Americans.
Australians also have higher expectations than other countries when it comes to loyalty programs. Six in 10 Aussies prefer to shop with retailers that reward loyalty, compared to 55% of Americans, 49% of Brits and the global average of 58%. Australia is on par with the global average when it comes to wanting retailers to improve loyalty programmes (65%), with 63% wanting programs to be linked automatically to their payment card (the same as the global average) compared to 61% in the UK and US.
“We’ve been able to future-proof our business by accelerating our digital transformation. We’ve also focused on connecting with our customers and facilitating a strong sense of community. Customer feedback on the adaptations we made has been overwhelmingly positive. They’ve remained loyal to us throughout this period as we worked to provide great service and experience in an ever-changing environment.”
Caitlin Caldwell ~ Product Manager, Grill’d
Curious to learn more about payment-linked loyalty?
No touching
Contactless payments are key. Consumers want the pleasure of making a purchase without worrying about their safety and they expect businesses to meet the hygiene standards mandated by their governments. Contactless payments are now the method of choice for half of all consumers surveyed and most want to see retailers make use of technology to reduce person-to-person contact.
The same goes for F&B. Respondents are concerned about coming into close contact with other diners and believe businesses should offer contactless payment options wherever possible.
“We’re looking at the ways people transact, particularly in this ‘new normal’ to make sure we’re providing the right options. This includes mobile point of sale, which allows customers to pay outside the store. We also support and pay-by-link, where a customer pays for items via a secure payment link which can be sent as a follow-up to a video consultation. We’re doing all we can to ensure customers feel comfortable.”
Robbie Tutt ~ GM Digital and Technology, Aesop
% that are concerned about the hygiene of payment terminals and would prefer contactless payment methods
Global
54%
US
46%
UK
59%
Australia
50%
48% want retailers to use in-store technology to reduce person contact
27% say restaurants should do everything they can to introduce contact-free ways to pay
Male
45%
26%
Female
51%
29%
18 - 34 yrs
62%
25%
35 - 54 yrs
51%
29%
55+ yrs
33%
28%
Looking further afield: hygiene-conscious
Australians are amongst the biggest advocates for encouraging social distancing in stores, with 57% concerned about being in close proximity to strangers (tied with the UK) compared to 47% globally.
This concern also applies to eating out, with 55% saying that proximity was their main concern when visiting bars and restaurants compared to 60% of Americans, 50% of Brits and 39% globally. But Australians won’t let it ruin their appetite – only 28% say they’ll be dining out less following the pandemic vs 29% globally - and 47% in Singapore.
Contactless payments today
Contactless payments have come a long way from simply tapping your card on a terminal. Near field communication (NFC) technology also supports digital wallets such as Apple Pay and Google Pay™️, Alipay and WeChat Pay. These wallets have the added benefit of helping to blur the lines between digital and physical transactions so a customer can move seamlessly between the two. And, thanks to their secure authentication methods (like passcodes, fingerprints, and facial recognition) they’re not restricted to standard contactless transaction limits. Crucially, they remove the need to go digging around in your wallet, which reduces friction and helps increase conversions.
For restaurants, there’s a whole new swathe of payment options that allow diners to keep their distance. These include pay-at-table and pay-at-bar, in which staff can send the customer’s order straight to their handheld POS device, freeing up the counter area for other orders.
“Grill’d is expanding our technology to include contactless ordering and payment at table. We’ve had a really positive response from diners in the pilot phase. It used to be about separately defined online or instore experiences, but we can now give our customers the best of both worlds. It’s become clear that customers now expect a seamless experience both online and offline.”
Caitlin Caldwell ~ Product Manager, Grill’d
