Retail and hospitality businesses that adopt the latest payment technology in-store are better at retaining customers and viewed as more trustworthy than their cash-only counterparts, according to findings from new Commonwealth Bank research released on Monday.
The research looked at the emotional and rational drivers behind customers’ perfect in-store experiences, revealing inefficient customer service – 68% – and queuing – 53% – as two of the biggest contributors to a poor ‘retail therapy’ experience.
With 75% of those surveyed using a credit/debit card as their primary payment method, the study indicated that cash is no longer king and digital is fast becoming the norm. Half would avoid a store if they have to wait to make a payment.
Just under half – 47% – of survey respondents believe retailers that use the latest payment technology are more in tune with their needs as a customer, with a further 74% suggesting they would stay loyal to a business that offers personalisation.
Claire Roberts, Executive General Manager, Local Business Banking, Commonwealth Bank, said, ‘Technology is reshaping the relationship between consumers and businesses. As more and more customers expect to be using the latest technology in store, those businesses not adopting new payment methods will be left behind.’
‘With recent advances in payment technology now available to businesses of any size, SME retailers have a new opportunity to transform point-of-sale and in-store experiences to drive sales and encourage greater customer loyalty through repeat business.’
The study also revealed the impact of a negative in-store experience on consumer purchasing:
- 75% of Australians said they would leave a store if they can’t easily access help/guidance/information
- 72% won’t buy from a store if they can’t easily find a product they want
- 50% will avoid a business if they have to queue for payment.
Dr Johann Ponnampalam, Deakin University behavioural scientist, said the findings speak to the human tendency to avoid friction. ‘Much of our daily life involves habitual, autopilot behaviour. When in this mindset, we crave faster, simpler, easier service interactions and when we don’t receive them, we experience friction which often leads to us avoiding purchasing altogether.
‘Our lives are more complex than ever before and consumers have an abundance of choice. In a retail environment, we are, at times, overwhelmed by choice. This leads to choice paralysis, which in-turn leads to avoiding purchase decisions and buyer’s remorse. The study shows that businesses need to work harder to help customers make informed, confident choices by providing personalised and relevant information during the retail experience,’ he said.
Customers are calling for personalisation – more than half – 58% – of those surveyed believe retail businesses should do more to personalise their shopping experiences.
One leading-edge payments device that is paving the way for this enhanced in-store ‘retail therapy’ experience is Albert, a device that both takes payments as well as accessing front-end point of sale and back-end processing systems of businesses.
Coupled with Albert’s flexible payment options, mobility and bill splitting functionalities, apps such as Daily IQ and Kounta help businesses get to know their customers through their spending patterns so they can improve customer service in-store from interactions with staff through to POS and payment.
