As shopper expectations continue to evolve, there is a growing focus on elevating the customer experience to drive sales and build long-term loyalty.
The latest American Express research revealed that almost one third (32%) of UK retailers identify customer attraction and retention as a key challenge over the next 12 months. As a result, over half (52%) of merchants say that they’re funnelling investment towards winning new customers, whilst 36% are allocating budget to help retain existing ones – with technology being a key enabler.
Dan Edelman, Vice President and UK General Manager, Merchant Services, American Express
Driving personalised experiences
Undeniably, the best customer experiences are personalised and seamless. There has been a noticeable shift in consumer expectations, especially in an environment where digital and ‘real life’ experiences are intertwined. Previous research from American Express revealed that over two-fifths (43%) of shoppers expect to receive only targeted communications from retail brands.
Our latest research reveals that retailers are responding to this demand: nearly four in ten (39%) plan to invest more in targeting consumers to improve engagement. Social media has also become a particular focus with a third (33%) saying they would invest in these channels to build authentic connections and communities.
There are opportunities for retailers to invest in a scalable way to enable more personalised customer interactions. For example, leveraging social commerce to capture more spend or running incentives to engage new customers. We see this with our Amex Offers programme, where we partner with our merchants to bring compelling offers to our Cardmembers to help drive new and repeat spend.
Leveraging in-store technology
Whilst a good e-commerce presence is now a prerequisite, retailers are recognising that, just as they look to keep their digital operation as seamless as possible, their physical locations can be ripe for innovation too – and this is key to continue attracting customers. Almost a third (30%) of retailers said in-store technology is now a focus for investment, and our research found that one third (33%) of shoppers said they would be more likely to make a purchase if the retailer makes good use of technology, such as augmented reality (AR). We’ve seen various retailers leverage AR In storefront displays and ‘try before you buy’ experiences and this will become more commonplace.
Streamlining payment processes
A seamless checkout process is at the heart of a positive multichannel retail experience; retailers are increasingly conscious of this, with one in three (32%) investing in payment systems that ensure both in-store and online checkout experiences are frictionless.
This can help reduce cart abandonment rates, increase customer satisfaction, encourage repeat purchases and build brand loyalty. Previous Amex research has highlighted that consumers are looking for choice and convenience when it comes to paying for goods and services; just over two fifths (42%) of shoppers have taken their custom elsewhere after experiencing a slow checkout and payment process.
Retailers operate in an increasingly multichannel world; it’s encouraging to see they are looking to drive consistency through investment to their stores, ecommerce platforms and social media channels. Winning brand loyalty is an ongoing challenge, and the retailers that elevate customer experiences across a range of different touchpoints will gain a competitive edge.
Dan Edelman, Vice President and UK General Manager, Merchant Services, American Express
