Understanding the Modern Consumer Experience

We know how important it is for merchants to offer fast and secure payments as part of the wider customer experience. If you’re looking to improve customer satisfaction, here’s why embracing technology that enables a frictionless experience is essential for your retail business.

Meeting the demands of the modern consumer

Excellent customer service is paramount for any merchant who hopes to operate successfully. The modern consumer is no longer solely interested in obtaining a new pair of shoes or a coffee machine. They want to enjoy a shopping experience that recognizes their needs, makes them feel special and helps them get the goods they’re after in the most convenient and safest way possible.

More than ever, these shoppers are plugged in at multiple stages, and through multiple devices, of the buying journey.

According to our recent UK shopper survey of consumer spending habits, consumers spend up to 2.5 hours a week deliberating on purchases – of that, they spend an average of 30 minutes each day deciding on online purchases. Yet, with all this time spent on browsing and deciding, online retailers still see a staggering 75% abandon cart rate according to a recent 2018 study.  This begs the very important question: What is preventing these customers from reaching the checkout finish line? 

Based on our research, here are some things merchants can do to remove friction points and increase conversion rates.

Make shopping less agonizing

1. Use social media. Based on our survey, over 50% of young shoppers would like to buy directly from social media platforms like Facebook and Instagram. By presenting a purchase opportunity on social platforms they’re currently on, consumers can skip the extra step (friction) by purchasing the goods right then and there, rather than leaving the Facebook or Instagram environment to go to another website to buy the item. The modern consumer is also quick to use social media to provide public feedback – both good and bad – so make sure you invest in your brand presence on social media.

2. Get personal. 65% of our respondents said they would enjoy receiving personalized discounts and offers based on their purchase history. Let past experiences do the heavy lifting and invest in some outreach and retargeting efforts to your past and recurring customers with products you know they’ll be interested in. PSPs like Checkout.com offer a wealth of data and purchase histories so you can present recommended products and services to those who’ve shopped with you before, so take advantage!

3. Faster, better & more payments. Let’s face it, paying is usually the least enjoyable part of the shopping experience. So it’s crucial that this part of the shoppers’ journey be the smoothest, fastest and safest experience possible. You’ve worked hard to earn their attention up to this point so don’t let payment hiccups stop you from sealing the deal. Consider these points when building the customers’ journey – and when choosing your PSP:

- 57% percent of those surveyed said they would not return to a brand if they had slow payments – or check out other options before returning.

- 77% of respondent said they like when brands offer a wide range of payment options including newer payment methods like Apple Pay and Google Pay.

- 1 in 4 said they feel nervous that a brand is comprising their data when the payments are slow and 16% said it causes them to lose trust in the brand.

Merchants need to provide an impeccable experience from the moment customers start engaging with their brand. The entire buying experience must be seamless, meaning an optimized payments infrastructure is vital to meeting the modern consumers’ shopping demands.

There are clear rewards for brands that put frictionless payments at the heart of their customer experience strategies like increased conversion rates and improved brand reputation. Those that don’t prioritize their payments process put themselves at risk.

Checkout.com UK consumer survey

PSPs, or Payment Service Providers, like Checkout.com help merchants deliver a positive and smooth shopping experience. Consumer expectations and market demands are constantly evolving – and advances in technology are continually changing how consumers prefer to pay. PSPs and merchants need to work together to remain agile and relevant, particularly with the growth of e-commerce and the subsequent rise in mobile payments.   

While a merchant should focus on removing friction for their customers, similarly, a PSP should remove friction and pain points for their customers – that’s you, the merchant. PSPs like Checkout.com streamline your workflow and handle all your payment needs so you can invest your energy into other parts of the business. This includes faster processing, offering clear, transparent costs, data-rich reports, ease of integration – and most importantly, offers a clear path to growth and global scalability.

For more, here are 10 things to look for in your PSP

Keep up-to-date with all things payments

Written on Sep 04, 2018 by

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Monica Ha

Senior Content Marketing Manager

Keep up-to-date with all things payments

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