Inside the mind of the modern consumer

Understanding customers is no easy job for retailers today. What consumers want is changing all the time, as is the technology that they rely on as part of their shopping trip. It’s no wonder that many businesses are struggling to keep up!

It doesn’t help that retailers are inundated with headlines that profess the latest insights into consumer habits; which ones can they actually trust? Here, we’ve detailed the most recent retail research that retailers – online and off – should factor into their customer experience strategy.

“They are impatient” – Vodat International

5 minutes; that’s how long a customer will wait for their query to be answered in-store. That doesn’t leave much time for a staff member to gather the information they’re unsure of, before that shopper abandons their journey completely.

How to respond

Ensure that your workforce receives regular training regarding your product offering – especially if new items are added. For an extra helping hand, why not implement tablets in stores so that answers are always at staff’s fingertips?

“They expect personalisation” – iVend Retail

A third of shoppers think they get personalised offers online, but not in-store. Perhaps this is one of the key reasons why ecommerce seems to gaining its sales share of channel.

How to respond

Yes, online has automated capabilities that allow loyal customers to receive information that is specific to them – but there is something the store can do better.  The ability to see, touch and try products cannot be replicated online, and even better, the presence of staff means that shoppers can get even more insight into the products they’re interested in. There’s nothing more personable than face-to-face interaction, so encourage conversation to give staff the opportunity to upsell products that might compliment a customer’s purchase.

“They tap-to-pay” – Visa

The number of contactless transactions made in the UK last year increased by 250%, according to the payments specialist. It’s suggested that this is largely due to the spending limit rise in September, which saw consumers able to pay for goods of up to £30, as opposed to just £20.

How to respond

The speed of the payment method fits the profile of today’s busy, impatient shopper. Therefore, now is definitely the time to ensure that your store not only accepts contactless, but encourages its usage.

You’ll also find that the same NFC technology in contactless terminals works with some mobile payments services, e.g. Apple Pay. As availability widens, consumers will come to expect all retailers to offer the method to them in-store. Those that don’t are likely to be viewed as outdated pretty soon, while those that do will see queue times accelerate and customer satisfaction soar.

Of course, if you’re planning on implementing such technology, you’ll want to make sure that your card payment network security is up-to-scratch. You can find out how to ensure this here.

“They go mobile” – Episerver

Mobile shopping is already playing a huge part in how people are shopping this year; 59% of Brits used their device to purchase items in the January sales.

How to respond

Shopping on a mobile device is meant to provide the ultimate convenience for consumers, allowing them to browse retailers wherever they go. With this in mind, it’s essential that you make your own mobile experience easy – ensure that you’re website is properly optimised, and that the payment process is neither lengthy nor fiddly.

“They click-and-collect” – Atomik

Shoppers might love mobile, but not quite as much as click-and-collect. A recent survey saw it beat mobile as the method that impacted their 2015 shopping experience the most.

How to respond

The role of the store has evolved from being just a sales channel, it now has to deal with a constant flow of click-and-collect orders. As most retailers now offer the service, they need to make sure that it’s the best it can be to stand out from so many others that offer the same. Training staff, implementing dedicated click-and-collect personnel, or adding an interactive kiosk are all ways to better optimise the store for click-and-collect. Of course, with all this extra technology, retailers must invest in a network that’s robust enough to support it.

Have you seen any recent retail statistics that you think offer real value to retailers? Then share them with us on Twitter via @Vodat_Int.

 

3 sectors that can’t survive without contactless

Contactless has become the unstoppable force of the payments industry. From a relatively niche transaction method less than two years ago, its popularity has soared among consumers, with contactless spending increasing by 330% during 2014.

Although this change in consumer behaviour impacts businesses across the board, there are certain industries where contactless payments are proving critical to success. Here, we outline the opportunities in three of those sectors – and why it’s paramount that companies in these areas embrace the latest payments technology.

  1. Retail

It’s official: contactless is the new cash – it’s even driving down ATM traffic. ‘Touch and go’ style card transactions are the fastest growing payment method. According to recent Halifax statistics, contactless now accounts for £15 of every £100 spent, and have contributed to a 16.6% fall in cash withdrawals.

What does this mean for retailers? Put simply, today’s shoppers want to use their card for both low and high value purchases. With companies including Boots, Marks & Spencer, Sainsbury’s and WH Smith already proactively using contactless payments services, the technology is quickly moving from a differentiator to a necessity.

The need to offer contactless payments will increase over the next few months as well; from January 2016 all new POS terminals that accept MasterCard will be required to have contactless capabilities.

  1. Travel

Of all the sectors, travel has been most progressive in its use of contactless payments. Almost half of contactless payments take place within the M25, predominantly due to its adoption across the London transport network.

Since switching from Oyster to contactless, Transport for London has reached more than one million taps a day, becoming the fastest growing contactless merchant in Europe.

With one of the country’s largest transport networks leading the way, it is only a matter of time before customers demand to use contactless payments whenever they commute. This will, however, enable travel companies to address challenges such as passengers attempting to board with pre-pay cards that are out of credit.

  1. Hospitality

An important change takes place this September, which will catapult contactless to the front of the hospitality agenda: the maximum transaction value will increase to £30.

While contactless is already being used by some pubs and cafes to cover low value orders, raising the limit on payment levels will place new vendors – such as restaurants – in the ‘sweet spot’ for tap to pay technology.

Contactless will also become a crucial queue buster during busy periods. McDonalds and Starbucks are among those already using payment solutions to improve customer convenience, and even those outside the traditional hospitality environment, like market stalls and mobile food vans, will need contactless card payments to keep up with consumer demands.

Enjoyed this article? Check out our surprising stats about contactless payments for more insights.

Have contactless payments finally reached a tipping point?

The concept of contactless payment was met with mixed reactions when it first launched in the UK in 2008, and it has taken a while for Britons to warm to the payment method but it seems the tipping point has finally emerged.

According to The UK Cards Association, contactless payments broke the £100million barrier for the first time in March 2014, with final figures reaching £109.2million – three times the total expenditure for the same month last year. One in three consumers now owns a contactless card, which can be used to make transactions up to £20 when touched on a reader.

So why has contactless suddenly become an accepted mainstream payment method? Card providers offering this option have worked hard over the last 12-18 months in particular, to ease any concerns consumers have regarding their security, and to also educate them on how contactless works – highlighting potential issues such as card clash.

Equally, retailers have embraced its convenience and installed contactless payment systems so that customers can pay for small value items on the hop. EAT became the first UK restaurant chain to offer the service in 2008, but consumers can now make touch transactions at most retail outlets including McDonald’s, Boots, Pret a Manger and Starbucks.

One major factor has been the adoption of contactless technology by the transport industry. Selected bus and train services already offer ‘touch in’ services and the London Underground is trialling the use of contactless debit card payments in place of its current Oyster Card system, with a view to rolling out the facility across the entire network in the near future.

With major travel operators and leading international brands giving consumers confidence in contactless, now is the time for retailers to join the pin-free revolution and install contactless readers alongside their existing payment solutions. Before long, contactless will evolve from a novelty to a must have, and those not offering it will be left behind.