The retail landscape has undergone remarkable evolution in recent years, encountering various challenges from shifting consumer behaviors to economic fluctuations like rising energy costs, supply chain disruptions, and inflation. Nonetheless, consumers remain keen to spend, seeking greater value for their purchases and intensifying competition among merchants for both sales and customer loyalty.
Post-pandemic, online shoppers have become more discerning and demanding. Customer loyalty alone no longer guarantees sales, as consumers explore diverse options to maximize their spending. Recent data reveals that 64 percent of consumers switch brands to save money, signaling a new era where retaining customers requires more than mere familiarity.
In this dynamic and fiercely competitive environment, merchants must seize every profit opportunity. Understanding consumer loyalty and motivation becomes paramount.
Leading with customer experience
A pivotal change in consumer behavior post COVID-19 is the continued preference for online shopping by consumers, notably via mobile platforms. The surge in mobile commerce, increase in cross-border transactions, and growing appetite for in-app purchases necessitates adaptability in a merchant’s tech infrastructure. Establishing a robust foundation capable of leveraging data insights becomes imperative.
An optimized infrastructure ensures a seamless customer experience and a streamlined verification process during checkout. Misconfigured systems lead to delays, impeding customer experience and hindering trend identification in consumer behavior.
Implementing the right infrastructure enhances customer experience, eliminates transaction delays stemming from authentication procedures, and allows for the swift resolution of suspicious activities without inconveniencing customers.
Getting payments right
The payments industry is intricately woven into retail, adapting to new and alternative payment methods. Simplifying backend processes without disrupting customer experience has fostered a specialized, ever-evolving environment.
Traditional payment methods like credit and debit cards are declining, while alternatives like Buy Now, Pay Later (BNPL), PayPal, and Apple Pay are witnessing unprecedented growth. Customers seek instant, embedded payment options, prompting retailers to adapt while mitigating associated risks.
Golden quarter and beyond
For merchants, ongoing innovation remains pivotal, with payment orchestration representing a crucial piece of the puzzle. The ideal scenario emerges when three essential components—customer experience, fraud protection, and payment orchestration—harmonize seamlessly. Collaboration among merchants, payment service providers, and digital payment-focused entities is imperative to strike this balance. This collaboration affords merchants the luxury of focusing on customer service rather than the intricacies of backend management.
For a list of the sources used in this article, please contact the editor.
Amal Ahmed is Director, Financial Services & EMEA Marketing at Signifyd. Signifyd provides an end-to-end commerce protection platform that leverages its commerce network to maximize conversion, automate customer experience and eliminate fraud and consumer abuse risk for retailers. Its solutions provide the transparency and control that brands need to succeed in the rapidly changing world of commerce.