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As consumers become ever more discerning, Worldpay’s Pinar Koygun takes a look at five ways retailers can deepen their engagement with customers
With 38% of UK shoppers saying they are concerned about job security, according to our recent survey (Worldpay, Future Shoppers, 2024) and almost 60% saying they were concerned the economy could impact their standard of living, it’s absolutely right that retailers may be looking at price and value.
Shoppers are becoming more considered in their choices and it’s becoming harder for merchants to stand out in the crowd.
However, while consumers are price-driven, another theme also emerged from our data, which was that they are ready for a new era of retail innovation.
With improved user experience comes better customer retention, the ability to transact quickly and improved access to products.
New retail models can diversify income streams for merchants, for example by owning the ‘resale’ part of your item lifecycle or offering a subscription that provides an ‘always on’ income stream, as well as saving customers’ time when it comes to replenishment.
Here are our top tips for deepening shopper engagement that aren’t about dropping prices:
1. Curate shopping experiences through social channels
Livestream and social shopping are still on the rise, with one in five having bought something through social media, and 57% being open to doing so in the future. Gen Z shoppers are most likely to make impulse purchases after seeing an item showcased on social channels.
2. Use augmented reality and other technologies
Bring the in-store experience into the palm of your hand. Ten per cent of our respondents have used augmented reality to shop and 57% are open to it.
3. Focus on A+ omnichannel
We found shoppers might spend more during a transaction if they had a personalised experience both in-store and online, and 68% expected a joined-up omnichannel experience when shopping in the future.
4. Explore resell for increased item lifecycle
With shoppers becoming more environmentally aware, pre-loved purchases are having their moment. Seventy-six per cent of respondents were open to buying pre-loved items.
5. Offer choice at the checkout
Shoppers told us they are more likely to pay with buy now, pay later (BNPL) when under financial pressures (57%) and 44% will leave a transaction if they can’t pay how they want to. Payments need to be fast, secure and convenient but that’s no longer enough. Offering choices in payment methods – digital wallets, local payment methods, BNPL and more – ensures shoppers have flexibility when they need it.
- Is it time to speed up your innovation roadmap to meet the needs of the new shoppers? Read the report now
Pinar Koygun is senior director of global retail at Worldpay.
