Adyen Study Reveals The Cost Of Convenience; Retailers Lost $37.7B In Potential Sales Due To Long Lines

Adyen, the payments platform of choice for many of the world's leading companies, released survey findings today based on consumers' and retailers' wants and needs across the U.S. The survey was conducted by 451 Research in March 2018 and covered 1,003 US consumers aged 18 and above and 250 B2C retailers that operate in the US. The survey was designed to better understand consumers' current and future shopping experiences, preferences, behaviors, and the impact of digital trends.

The study showed that the demand for immersive interactions is shifting competition in retail from price points to experiences. To compete effectively in today's environment, retailers must go beyond selling a product or service to delivering experiences that cater to their customers' own unique needs. In fact, over the last 12 months, 86 percent of US consumers say they have left a store due to long lines, resulting in purchases at a different retailer or no purchase at all.  This results in approximately $37.7 billion lost in potential sales. In addition, $1.1 billion in potential sales have been lost when retailers don't support their customers' preferred payment methods.

A key segment emerged in the study, coined "Spendsetters". This group loves to use digital technology, tends to be early tech adopters, and represents one third of all consumers and 52 percent of millennials. Spendsetters will drive the future of retail as the key segment of shoppers who set the trends for how people want to spend and shop. They are a leading indicator of broader customer demands in retail experience and where the industry is headed.

"The lines between the physical and digital shopping worlds are dissolving," said Roelant Prins, Chief Commercial Officer at Adyen. "Retailers need to cater to shoppers by offering fast, easy and frictionless ways to pay so there are minimal lines and offer personalized recommendations and in-store deals. In other words, experience is key."

Additional findings from the report include:

• Understanding the Spendsetters:

  • 45 percent believe brand is important and are willing to pay a premium for the experience

  • 49 percent love to shop

  • 42 percent prefer to shop online

  • 80 percent are comfortable using digital wallets

  • 86 percent have left a store due to long lines

• Spendsetters have three overarching shopping demands; convenience, context and control

  • Convenience (fast, easy and frictionless):

    • 75 percent would shop more in-store with a "just walk out" payment experience

    • 69 percent would shop more in-store with shorter lines and direct shipping of out-of-stock products

  • Context (personalized):

    • 57 percent say the ability to check if an item is available online before going in-store would increase their loyalty to a retailer

    • 53 percent prefer a store with a mobile loyalty program

    • 72 percent would shop more with personalized product recommendations and coupons, based on location

    • 61 percent want personalized experiences based on past purchases and preferences

  • Control (interact on my terms):

    • 59 percent want to use a store-branded app to pay onsite

    • 80 percent are comfortable using digital wallets

    • 53 percent would shop more online if they could use a chatbot with personalized recommendations

    • 80 percent would increase shopping frequency online through marketplaces

• Luxury vs. other types of retailers (beauty, fashion, hospitality)

  • 85 percent see an increase in customers using their mobile phone for shopping in stores (e.g. coupons, payments, product information)

  • 74 percent are considering cashless stores that only accept cards and digital payment

The survey also examined issues from the retailers' perspective:

• 46 percent of retailers are considering cashless stores

• 67 percent see an increase in customers using their mobile phones in-store for coupons, payments and product info

• 64 percent see a need for associates to use mobile devices to better assist customers

For more information and to view the full study and infographic, please click here.

About Adyen

Adyen (AMS: ADYEN) is the payments platform of choice for many of the world’s leading companies, providing 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 channels. With offices across the world, Adyen serves customers including Facebook, Uber, Spotify, Microsoft, Casper, Bonobos and L'Oréal.