Unifying clicks-and-mortar for more sales success
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At e-commerce fashion brand Love, Bonito’s newest – and largest – physical store at Singapore’s Funan mall, shoppers pose and post at “Instagrammable” spots while others collect online orders at the express counter.
Less visible is what is taking place at the cashiers, where shoppers pay using any mode – cash, credit or digital wallets. Payment and product preferences are tracked for when the shopper next shops, online or off, so that the shopping experience is constantly fine-tuned and personalised.
The new store reflects what an increasing number of retailers recognise – that today’s digitally savvy, sophisticated shopper wants experiences that are integrated, seamless and tailored. And Singapore shoppers are leading the pack in Asia Pacific.
In a recent Adyen-451 Research survey, 51 per cent of Singapore shoppers said cross-channel options would influence their decision to shop with a specific retailer; 60 per cent have abandoned an online purchase because they could not use their preferred payment method; and 89 per cent ditched a purchase or left a store because an item was not in stock.
More so than ever, retail today is about prioritising the consumer’s experience. And as Singapore shoppers increasingly demand convenient and frictionless experiences, unified commerce – ensuring seamless online-offline transitions, from discovery to checkout – will separate the retailers who succeed from those who don’t.
Four strategic priorities for winning at retail
With US$1 trillion in sales volume in Asia Pacific at stake, the business case for unified commerce is clear. But having the right technology is not enough – it requires a mindset and strategic shift towards customer-centric innovation.
Any action plan must consider these four strategic priorities:
1. Commit to a digital transformation strategy: Buy-in across the organisation – from the C-suite through to front-line sales associates – is critical. While one-in-three retailers in Singapore execute against a formal strategy, there is still much ground to cover. An important consideration is the high preference for contactless payments at 28 per cent of Singapore shoppers. Digital transformation must incorporate both globally-used digital wallet options like Apple Pay and Google Pay, and local payment methods like Alipay and WeChat Pay.
“With US$1 trillion in sales volume in Asia Pacific at stake, the business case for unified commerce is clear.”
2. Convert the store into a strategic asset: While in-store is the choice channel across all age groups – preferred by 41 per cent of Singapore shoppers compared to 32 per cent online – a frictionless experience is key. Some 89 per cent abandoned a purchase because a product is out-of-stock, and short or no queues are a deciding factor for a whopping 96 per cent. Mobile points-of-sale (mPOS) help bust queues, and by allowing cross-channel buying and contactless payments, shoppers can complete purchases seamlessly.
3. Embrace contextual commerce: Channels like social media and smart speakers that allow shoppers to move from impulse to purchase in a single interaction are quickly catching on in the region, where the percentage of consumers shopping on social media and third-party messaging apps is the highest in the world (more than 45 per cent). But only 22 per cent of retailers enable purchases on social media, and 13 per cent on smart speakers.
4. Prioritise payments: Consider that 60 per cent of Singapore shoppers have abandoned an online purchase because their preferred payment method is not available. Shoppers demand fast and efficient transactions, so eliminating friction is critical. To ensure the sale is in the bag, retailers need to smoothen payment pathways, from accepting an array of payment methods and offering one-click checkouts, to avoiding unnecessary declined transactions.
Sealing the sale
Simply put, unified commerce identifies – and eliminates – friction points that lead to abandoned purchases.
To succeed, retailers must prioritize strategies that ease that process, providing a shopping experience that is consistent, convenient, and contextual for today’s shoppers who are more demanding than ever before.
The ability to do that is what give retailers the edge to win in the next chapter of retail.
Questions & Answers
Q.What is 'unified commerce' and why is it important for retailers?
What is 'unified commerce' and why is it important for retailers?
Unified commerce ensures smooth online-offline transitions, from discovery to checkout, helping retailers succeed. It identifies and eliminates friction points that often lead to abandoned purchases, improving the customer experience.
Q.Which specific customer preferences are driving the need for unified commerce in Singapore?
Which specific customer preferences are driving the need for unified commerce in Singapore?
Singapore shoppers lead the Asia Pacific region in demanding integrated experiences. Key factors include 51% wanting cross-channel options, 60% abandoning online purchases due to payment issues, and 89% leaving stores due to out-of-stock items.
Q.How can retailers make physical stores more effective assets in a unified commerce strategy?
How can retailers make physical stores more effective assets in a unified commerce strategy?
Retailers should ensure a frictionless in-store experience, as 89% of shoppers abandon purchases if an item is out of stock. Mobile points-of-sale can help reduce queues, a deciding factor for 96% of shoppers, and enable diverse payment methods.
Q.What role does payment play in preventing abandoned purchases for online shoppers?
What role does payment play in preventing abandoned purchases for online shoppers?
Payments are critical, as 60% of Singapore shoppers have abandoned an online purchase if their preferred method was unavailable. Retailers need to offer an array of payment options, including digital wallets, and streamline the checkout process to avoid declined transactions.