Adyen Agility Report Singapore ~ Chapter Three
The coronavirus pandemic has forced businesses, retailers included, to accelerate the changes they were calmly rolling out over a three-year period. For many consumers, this has been a positive change. Suddenly flexible, cross-channel journeys have been made available to shoppers by necessity, providing them with the speed and convenience they crave.
Technology has given businesses the agility to pivot fast and adapt to market conditions as they change. The challenge moving forward will be maintaining this level of flexibility. In fact three-quarters of consumers said their expectations of retailers have increased as a result of the pandemic, because they proved they could adapt quickly. Maintaining their loyalty will depend on you keeping up with these increased expectations. Interestingly, Singapore’s older generation is driving the expectation that retailers continue to use technology to give customers convenience and flexibility – which is a contrast to the global trend.
Josh Bell ~ GM & Master Franchisee, Guzman y Gomez Singapore
% that feel that if retailers can sell across multiple channels during the pandemic (e.g. in store, on their website, or through social media), they should adopt the same, flexible approach normally
% that want retailers that introduced an online offering during the pandemic to continue to maintain this even when they can open their stores again
Global
73%
73%
Singapore
87%
87%
18 - 34 yrs
86%
86%
35 - 54 yrs
87%
84%
55+ yrs
90%
94%
Customer journeys are evolving all the time. What used to be online or in store is now click and collect, cross-channel returns, endless aisles, in-app food orders, pay-at-table – the list goes on. There are also new sales channels appearing all the time. From smart speakers to smart cars and shoppable social media posts, buying can happen from anywhere. Businesses were already under a lot of pressure to offer flexibility to consumers. Our research shows that customers increasingly expect to be in control of how, when, and where they buy.
Jheeva Subramanian ~ Chief Financial Officer, BHG
76% 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.
18 - 34 yrs
75%
35 - 54 yrs
75%
55+ yrs
81%
68% say they would be more loyal to a retailer that lets them buy things online and return them in store.
64% would be more loyal to a retailer that enabled them to shop in store and finish shopping online, or vice versa.
18 - 34 yrs
66%
65%
35 - 54 yrs
65%
65%
55+ yrs
77%
61%
Whether it’s online, in-app or in-store, Singaporeans are all about retail experience – and providing a flexible seamless one is now paramount to business success and securing customer loyalty. 80% of shoppers won’t return if they have a bad experience either in store or online, while a third will abandon their cart if there are too many steps to checkout.
It is clear that a bad online shopping experience will lose you business. Both from a consumer and business perspective, Singapore leads the field when it comes to the online migration, meaning that anything less than a frictionless experience just won’t do. For the vast majority of consumers (87%), the ease of experience is as important as the quality of the product, and a clunky experience with too many steps to pay, not enough or irrelevant payment methods, or a sluggish authentication process will let you down.
If your ecommerce site was an afterthought, now’s the time to turn that around and watch your conversions soar. There are many elements that make up a great online shopping experience, but your payment pages are a good place to start.
Robbie Tutt ~ GM Digital and Technology, Aesop
% that say that when shopping online, the ease of use is as important as the quality of the product
Global
72%
Australia
73%
Hong Kong
88%
Singapore
87%
18 - 34 yrs
86%
35 - 54 yrs
86%
55+ yrs
91%
Where possible, keep the customer on your site and host the payment in your own environment. If redirects are necessary (in the case of chatbots or social media), make sure the payment page is consistent with your brand. Give your customers a relevant choice of payment methods based on their location and even the existing wallets they have installed on their phone. And whatever you do, design your checkout as mobile-first.
Managing payment fraud can be tricky. Set your risk settings too low and you’ll leave your business vulnerable. Set them too high and you may inadvertently block legitimate customers. However, with 47% of shoppers wanting to see retailers do more to combat fraud, retailers should consider using a smart risk system that uses data and machine learning to automatically find the perfect balance between security and conversion.
Strong Customer Authentication (SCA) helps protect consumers and businesses from the risks associated with payment fraud and is a vital element of any ecommerce strategy moving forward. While there is no formal regulation that enforces its use, unlike in Europe or other regions, there is a growing consciousness of payment security among shoppers and retailers in Singapore. Given many brands in Singapore have a global footprint, many have already adopted SCA as best practice or are using authentication methods like one-time password (OTP) or two-factor authentication (2FA). There’s no one-size-fits-all approach to applying SCA, but the right technology partner with a global coverage will be able to offer the right risk management.
Rostin Javadi ~ Chief Operations Officer, ZALORA
We’ve already seen that consumers are looking forward to shopping in store again. Physical shopping is an important cultural pastime in Singapore – and this isn’t going to change anytime soon. However, the role of the store is changing. If consumers are going to journey to a retail or dining destination, it needs to offer something extra, without losing any of the convenience that they love about online. In response to this, retailers are increasingly viewing their physical environments as showrooms; beautiful spaces where they can really engage consumers in their brand and differentiate themselves through experience.
And when it comes to experience, simplicity is key. Consumers are looking for seamless integration between online and offline channels. It’s no longer enough to offer an omnichannel shopping experience. For Singaporeans who prioritize ease and speed, the shift to unified commerce cannot come fast enough.
Jheeva Subramanian ~ Chief Financial Officer, BHG
From personalized digital greetings to full-blown robotics, more experiential technologies are emerging quickly, and shoppers are eager to take advantage of it. They’ve already seen technology being used to create safer shopping environments – now they want it to see it create better, more engaging retail and dining experiences.
% that are more likely to shop with retailers that use technology to improve the shopping experience
% that want retailers to use technology to make the experience more interesting (e.g. virtual reality, augmented reality, in-store cafes, etc.)
Global
51%
36%
Singapore
76%
55%
18 - 34 yrs
80%
61%
35 - 54 yrs
75%
54%
55+ yrs
71%
50%
In some cases, the best application of technology is behind the scenes. Data-driven loyalty programs, bespoke offers, and tailored messaging can add a dash of magic to the buying experience. And in that way, you still have plenty of room for good old-fashioned service.
Keith Tan ~ Founder & CEO, Crown Group
Huey Tyng Ooi ~ Managing Director, Head of GrabPay
Singaporeans are amongst the most discerning customers when it comes to experience – 80% will not return to a retailer (online or in-store) who has a bad experience. This compares with 77% in Hong Kong, 72% in Australia 67% in the UK, 64% in the US, and the global average of 71%.
Furthermore, Singaporeans see huge potential for technology to make the retail experience simpler, more engaging and rewarding. Stores need to provide an avenue for customers to engage with a brand in exciting ways, while facilitating sales across online and offline channels.
59% like it when retailers use advanced technology such as augmented reality, virtual reality, and smart mirrors to improve the shopping experience – compared to the global average of 39%. In Hong Kong, 49% want to see this technology, while just 29% of Australians and Americans, and 26% of Brits.
A further 68% are keen to see in-app payments in-store, bringing the convenience of digital retail into the physical space. Singapore is second only to Hong Kong (76%) in this regard, compared to 37% in Australia, 69% in the UK and a global average of 47%.
Singaporeans are also looking for a digital-first approach to be applied to loyalty schemes, with 81% more likely to shop with a retailer if its loyalty program worked automatically through their payment cards. No other country responded to this question with such enthusiasm. The global average was 63%, while 61% of Hong Kongers and 61% of Americans and Brits want to see this functionality.