Adyen Agility Report Australia ~ Chapter Two
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.
Alexa Anastassi ~ Head of Digital Product, Jurlique
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.
Robbie Tutt ~ GM Digital and Technology, Aesop
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%
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%
Male
48%
37%
Female
58%
41%
18 - 34 yrs
61%
50%
35 - 54 yrs
59%
46%
55+ yrs
42%
23%
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.
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.
Caitlin Caldwell ~ Product Manager, Grill’d
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.
Robbie Tutt ~ GM Digital and Technology, Aesop
Global
54%
US
46%
UK
59%
Australia
50%
Male
45%
26%
Female
51%
29%
18 - 34 yrs
62%
25%
35 - 54 yrs
51%
29%
55+ yrs
33%
28%
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 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.
Caitlin Caldwell ~ Product Manager, Grill’d