Christmas may be over, but there are big opportunities for retailers to maximise revenue in the summer holiday sales period ahead, as consumers explore shops around popular holiday destinations. In addition to a good bargain, holidaymakers will be looking for choice, when it comes to how they purchase and pay for items. For retailers looking at optimising their payment stack, here are some things you should consider.
Seamlessly offer more payment choices for consumers
Consumers are seeking a diverse range of payment methods at checkout, to align with their individual choices and cash flow needs. From credit cards to digital wallets, to Buy Now Pay Later (BNPL), it can be challenging for retailers to keep up with consumer payment demands, yet it is necessary if retailers wish to keep their conversion rates optimised.
With over three-quarters (84 per cent) of Australians reporting a wide range of payment options allowing for a faster checkout, retailers offering options like loyalty points and spread payments are likely to remain competitive during the summer peak sales season.
Offering more payment choices to consumers is proven to improve conversions, but it can also result in consumers spending more. In fact, 70 per cent using a BNPL payment method reported spending more than they would otherwise. By not offering consumers more payment choices, retailers are missing an opportunity to optimise sales.
The demand for flexibility
Time is of the essence with the peak summer holiday sales season gaining traction, and investing in additional resources and overhauling existing payment infrastructure at this point is not an option for retailers looking to add more flexibility for customers quickly.
With more flexibility, retailers can expect to generate more transactions through their payment stack by avoiding shopper drop-off during the busy sales period. Cart abandonment is a major problem for online retailers, with 59 per cent of customers reporting they have frequently abandoned shopping carts when their preferred payment is unavailable.
By not offering a comprehensive range of alternative and flexible payment options, retailers risk losing potential customers to competitors that provide these methods and additionally reduce the chances of repeat purchases from existing ones. A better payment ecosystem is needed for retailers, and in turn, customers, where they can function faster with less complexity and clutter.
Future-proof your summer sales strategy
Offering the most relevant payment methods will provide customers a richer, seamless, and more convenient experience, and in change, will allow retailers to maintain loyalty, benefitting both a retailer’s brand and position in the market. One future-proof strategy that seamlessly adapts to evolving customer expectations is payment orchestration.
Payment orchestration can be thought of as an international travel adapter for different payment processes, seamlessly plugging into all types of different payment methods without forcing merchants to continually change internal processes or undergo technology changes.
It simplifies payment strategies by allowing retailers to consolidate and manage all payment methods into a single interface. With just a few clicks, retailers can effortlessly plug in the latest payment methods, and align with consumer requirements and ensure conversions are maximised and no sales are missed.
Customers are expected to become more and more savvy, with access to information including price comparisons, reviews, and different online shopping experiences which allow them to make more informed decisions.
As the digital shopping landscape continues to evolve, retailers that offer more payment choices for consumers, provide flexibility and introduce future-proof solutions such as payment orchestration, will be better positioned to adapt to consumer behaviour not only during peak summer sales season but in the years to come.
Rob Lincolne is CEO and founder of Paydock.