The rise of alternative payments: A remedy for boosting sales and customer retention?
Cate Trotter
Helping transport, construction and government 10x performance by upgrading processes
It might come as no surprise that UK retail sales suffered the biggest decline in 25 years last year as the closure of non-essential shops during lockdown outweighed the online spending boom fuelled by the covid pandemic. In fact, even the most popular high street retailers have recorded as much as a 24% decline in sales volume compared to this time last year.
Not only have we seen a reduction in spending, but the way that consumers pay for their goods has also shifted as a result of covid-19. We’re seeing a nationwide reluctance to handle cash which has amplified the adoption of contactless and alternative payment methods such as digital wallets and installment based options.
In addition, we’re seeing the acceleration of 5-7 years’ worth of business away from bricks and mortar to online. Years from now when the pandemic’s impact on retail is analysed, it’s likely that the most revolutionary change will be how it pushed—or actually shoved—even the smallest retailers into the modern ecommerce era.
So, what do all of these changes mean for retailers, and most importantly, how can retailers reignite consumer demand for non-essential purchases in light of the current situation?
A lot of factors are outside of our control, but one factor that retailers should be considering very closely is the payment flow, and how to create a frictionless payment experience for their customers - which is exactly what Mode will be discussing in their upcoming webinar: The rise in Alternative Payments - A remedy for boosting sales and customer retention?
One of the biggest issues that retailers face today is the percentage of abandoned carts. In March 2020, some industries were seeing nearly 90% of shoppers start a transaction and not follow through with the payment.
With the decline in demand of non-essential items, it’s even more important for businesses to convert those people that have shown an intent to buy, by removing the friction in the checkout process and not giving them an excuse to abandon their cart at any point. In fact, experts estimate that conversions can be increased by over 35% by implementing the right checkout optimisation strategies.
Additionally, the shift to online shopping has contributed to an overall decline in customer loyalty. Most new issues are related to poor online payment experiences, suggesting that the majority of retailers were not ready for the digital onslaught - yet another reason to focus on streamlining the online payments process and tying loyalty into the payments channel.
If you’re wondering how to put this into practice, Mode, the UK’s next-gen payments and loyalty platform, will be hosting a Live Talk with L.K.Bennett CEO Darren Topp, to discuss how and why retailers should lean on alternative payments to help them drive up conversion rates and navigate their way through the current pandemic.
Darren will be joined by ex-Alipay UK CEO Rita Liu, and FinTech expert Janis Legler to discuss the ways in which consumer payments preferences have evolved, how retailers can boost demand through a better payment and loyalty experience and the rising importance of a frictionless checkout flow in reducing abandoned carts.
To save your spot, simply register via the link below.
Be sure to tune in on February 25th, at 11am.