How unified commerce will help retailers keep pace with the nowadays shopper

This editorial was first published in our Online Payments and Ecommerce Market Guide launched on 1 November 2017. The guide features several important thought leadership editorials from ecommerce and payments industry professionals, which makes it a top-reference source for anyone involved in the payments ecosystem.

Preparing for digital transformation: practical steps for retailers

Unified commerce is the ultimate goal for retailers that want to stay one step ahead of their shoppers. However, it may seem an overwhelming task, especially for those already struggling to keep pace with contactless payments, m-commerce and omnichannel retailing. All the while, delivery drones, smart devices and self-driving cars are snapping at their heels.

The good news is that unified commerce doesn’t require a huge overhaul – at least not all at once. Retailers can transform their businesses gradually, by trying new things, learning from failures and iterating their way to success.

To help retailers identify key focus areas for improvement, we surveyed 2000 UK shoppers and 500 UK retailers. Here’s what we found:

In-store innovation

The traditional store is alive and well, with 97% of respondents stating they still shop in-store. This is because the in-store experience is still impossible to replicate online. Successful brands have capitalized on this by focusing on delivering a sensory experience. A visit to Rituals, for example, is like stepping into a spa; Sonos recreated living spaces to test their sound, and H&M’s new ARKET store on Regent Street serves coffee.

Ecommerce pure-plays realized the importance of the store experience. Men’s fashion brand Bonobos opened showrooms where shoppers can try on items before ordering online. Other retailers use pop-up shops to establish stronger relationships with shoppers, like Cambridge Satchel, which grew Black Friday sales by 124% year-on-year with pop-up shops and endless aisles.

Nevertheless, despite the clear benefits of the in-store experience, there are some age-old pain points still tripping retailers up. For 57% of UK shoppers, staying in queue is their biggest frustration. Retailers can eliminate queuing with mobile point of sale (mPOS) terminals, which let sales staff take payments from anywhere on the shop floor. Other retailers may skip this step entirely by letting shoppers scan QR codes and checkout in app.

Other issues include out of stock items, with 42% of UK shoppers wanting to order an out of stock item in-store. IC Group gives shoppers access to the online inventory via iPads, which has been a huge success, especially for smaller, regional stores with limited storage space.

Online optimisation

Ecommerce is growing fast, but it is not immune to pitfalls, like delivery costs, with 73% of UK shoppers stating they will abandon an online purchase if they believe the delivery cost is too high. Offering click and collect is a good way to cut delivery costs and it also has the benefit that shoppers (32% according to one survey) will buy more when collecting their purchase in-store.

Interestingly, despite the popularity of ecommerce, many UK retailers still lack confidence in their online experience. Of large retailers (500+ employees), only 3% rate their ecommerce site as their best shopping experience. This underlines the huge opportunities for those that get it right.

App usage is growing steadily, with 60% of UK shoppers stating that they shopped in-app. But here retailers are even more uncertain, with less than 4% stating they are satisfied with their apps. The dominant players are marketplaces like Asos and Farfetch, which provide a wide selection of brands in one place. Successful retailer apps focus on building a community and delivering quality content, in addition to product listings.

The mobile browser vs apps debate rages on, but thanks to progressive web apps (mobile browsers that behave like apps), retailers should be able to have their cake and eat it to.

Whether online or in-app, a quick and seamless payment experience is crucial. 63% of UK shoppers want to have their details saved, so they can pay quickly. This is easily managed via tokenization, which captures payment data during the first payment and uses an encrypted token to charge subsequent purchases.

Unified commerce

Every sales channel has its strengths and weaknesses. The real wins are to be had by linking online with in-store and providing a unified experience across both. UK shoppers are consistent in their demand for seamless cross-channel journeys. They want to buy online and collect in store; buy in-store and have items delivered free; and they want to check stock online before visiting the store.

Personalisation is also a hot topic. In the UK, 64% say they will buy more if they receive personalized in-store offers.

The investment in mobile is also essential. The ubiquity of mobile makes it the perfect vehicle for this kind of contextual marketing. It’s also ideal for anytime, anywhere shopping, becoming increasingly important as messaging app purchases enter the mainstream – making shopping as easy as chatting to a friend.

Next up: The emergence of technology, like delivery drones and self-driving cars, will increase further the number of shopper journeys.

Step by step

The prospect of a system overhaul is daunting, and it will not be achieved overnight. Technology partners like Adyen are here to help. We provide you with the agility to rollout new solutions, streamline your operations, and the data to evaluate your progress every step of the way.

To discover what shoppers want in 2017, download the full Adyen UK Retail Report.

About Jean-Marc Thienpont

Adyens point of sale Managing Director, Jean Marc, joined the world of payments 12 years ago. Driven by the fact his work impacts the lives of literally millions of shoppers worldwide, he works closely with retailers, and other card-present industries, to help deliver the best possible payment experiences to their customers. Prior to joining Adyen, Thienpont was part of the Management Board of Ingenico, serving as Head of Mobile Payment Solutions, and before that, as Head of Strategy and M&A.

About Adyen

Adyen is the technology company reinventing payments for the global economy. The only provider of a modern end-to-end infrastructure connecting directly to Visa, Mastercard, and consumers’ globally preferred payment methods, Adyen delivers frictionless payments across online, mobile, and in-store.