Financial technology platform Adyen has commissioned new independent research showing the changing expectations of Australian consumers and key retail trends impacting the retail sector, including insights that will help retailers shape, grow, and realise their ambitions for 2023 and beyond.
The Adyen Australia 2022 Retail Report outlines survey findings of over 50,000 respondents (consumers and businesses) across 26 countries, including 2,000 Australian adults and 502 Australian businesses. The report highlights key shopping and payment trends, as well as the importance of unified commerce in ensuring the retail industry’s resilience and adaptability in 2022 and beyond.
“For Australian consumers, it’s all about the experience. Just in the last five years alone we’ve seen consumer preference on shopping channels and payment methods shift from one to another, but there are two things that remain constant – It’s the reign of seamless experiences with cashless being king. Retailers who understand and adapt to this, regardless of platform or payment method, will be well-positioned to take on the next wave of retail innovation, “ says Hayley Fisher, country manager for Australia and New Zealand at Adyen.
While Australians have become more tech savvy, consumers still prefer shopping in a physical store over online, with 73 per cent surveyed choosing to shop in a physical store – 14 per cent more than any other country surveyed. Since the pandemic and ongoing lockdowns, 34 per cent of consumers say they have a new appreciation for being able to touch, feel, or physically try products in-store before they buy.
Although consumers continue to embrace ecommerce and online shopping, over two thirds of consumers (67 per cent) say physical stores are an important touchpoint, even if they shop with the same retailer online. 48 per cent say they like to go in-store for customer service or to get help with a product they couldn’t get online and 51 per cent are more loyal to retailers who have physical stores and online options.
More than two decades since ecommerce emerged, the pace of digital evolution in retail continues to accelerate. As data and analytics expand, so do opportunities for retailers to extract value through innovative products and services.There is a direct relationship between a retailer’s use of technology and their success, with Adyen’s research showing 63 per cent of retailers who deployed unified commerce grew by 20 per cent or more.
According to the research, the key to realising Australia’s retail ambitions is investing in the digital tools that will improve operations and appeal to customers at the same time. The pandemic has proven that consumers want businesses to embrace technology that will enhance their in-store experience, including loyalty programs.
More than half of Aussie consumers (58 per cent) think retailers need to use technology to make their loyalty and rewards program easier and more effective. 50 per cent of consumers said they are more likely to shop with a retailer if their loyalty programme worked automatically through their payment card, yet only a handful of retailers use this innovation.
With a majority of Australians preferring to shop in physical stores, retailers who offer unique in-store experiences are highly valued. In fact, the majority of Australians say they are more loyal to retailers that have physical stores and online options. Most Australians (53 per cent) would be more loyal to businesses that let them buy things online and return in-store or let them purchase an item that is out of stock in-store but available online, and have it sent directly to their home (56 per cent).
Experience matters for Australians, with shoppers citing an appreciation for retailers that provide a seamless shopping experience across all touchpoints. As shoppers continue to favour the in-store experience, retailers need to emulate physical store experiences as much as possible online to show that they understand their customer preferences.
The report also highlights Australians’ low tolerance for bad shopping experiences. 66 per cent of Australians said they would avoid shopping with businesses after a bad shopping experience (whether online or in-store) and 54 per cent of Australians want retailers to be able to sell across multiple channels. Australian retailers are also aware of these increased consumer expectations, with 56 per cent of businesses surveyed in Australia acknowledging that their customers are less tolerant of poor experiences.
“While Aussies were quick to adopt ecommerce during the pandemic, it didn’t diminish their love for in-store shopping,” added Fisher. “If anything, Aussies now expect retailers to provide the best of both worlds. To continue to remain agile and competitive, retailers should be driving towards meeting these consumer expectations, delivering exceptional customer experiences both in-store and online through unified commerce.”
