Poor payments experience at the checkout is the weak link in connected customers' omnichannel shopping experiences, causing retailers lost conversions and customer loyalty, a new report from KPS, a transformation agency, reveals.
Original research in the 'From First Look to Last Mile...And Back Again' report showed that half (50%) of European consumers found the checkout to be the least satisfying moment during their shopping experiences, both online and in-store
Two thirds (65%) of European shoppers conduct their shopping journey in whichever channel proves most convenient at that moment in time, however, while careful research matters prior to making a purchase, speed and convenience are at the forefront of consumers' minds when it comes to payment.
Over half (56%) of shoppers have given up on a purchase in-store if they deemed the queue to be too long, while 42% of online shoppers have abandoned their basket because checkout page loading times were too slow. Similarly, cumbersome online authentication processes put customers off completing a purchase and over a third (35%) were annoyed by having to log-in with email addresses each time they wanted to make a purchase.
For time-pressed consumers, fast and frictionless payments remain paramount. Since the launch of Apple and Android Pay, the 'tap and pay' revolution has been gaining momentum, as has the wider acceptance of contactless payments. Indeed, 40% now expect to be able to pay via contactless in-store and want the option to complete their purchase anywhere on the shop floor, underpinning the importance for retailers to offer convenient payment options at the point of sale.
Frank Lochbaum, Managing Partner at KPS, commented: "The point of payment must provide consumers with a positive experience; what happens at the checkout and how quickly and seamless the payment process is, can have dramatic impact on sales and customer retention."
"Payment technology has advanced significantly in recent years, making it easier than ever for consumers to buy in-store and online. But as the payment process becomes easier, consumers become increasingly demanding. Therefore, retailers need to know their customers' transactional preferences to ensure they provide the relevant choices in-store and online, which, in the long-term, will improve customer loyalty."
Original research of 1,421 European shoppers in the UK, Germany, Spain, Italy, Netherlands Denmark and Sweden was conducted by Morar for KPS.