The Way We Pay. A study on the buying behavior of the American consumer

Transcription

1 The Way We Pay A study on the buying behavior of the American consumer

2 The Way We Pay SecureNet Payment Systems. All Rights Reserved The Way We Pay 01

3 table of contents Executive Summary...1 Showrooming is Here to Stay...2 Overcoming the Trust Barrier...3 Shopper Experience is King...4 Cash Isn t Dead... Yet...5 About SecureNet...6 SecureNet Payment Systems. All Rights Reserved The Way We Pay

4 Executive Summary In economic circles, few topics generate as much interest as the behavior of the American consumer, one of the most important engines of the U.S. economy. But while much attention has been paid to the topic on a macro level, SecureNet set out to examine the preferences and behavior mechanisms driving purchase behavior, from millennials to baby boomers. The Way We Pay, a survey of 750 American consumers, examines a payments landscape in which retailers are increasingly feeling the pressure of an omnichannel environment. Shoppers are researching in-store and buying via smartphone. They re buying online and returning in-store. In 2015 and beyond, the consumer is the true point-of-sale. There are clear implications for the merchants on the front lines from the brick-and-mortar small business to the e-commerce giant to the disruptive tech startup. This report also offers valuable data for processors, integrators, security firms and other players in the payments industry. SecureNet Payment Systems. All Rights Reserved The Way We Pay 01

5 Showrooming is Here to Stay More than half of consumers (55%) have used a mobile device to research a product while in store. Among the demographic, this number jumps to 68%. Among the demographic, it s 72%. In fact, shoppers are no longer waiting to get home before making that purchase. The Way We Pay found that more than one in five consumers (21%) have purchased a product from their smartphone while browsing for the same item in a physical store. Among the demographic, this number is 25%. Among the demographic, it s 33%. Percentage of Shoppers Using Mobile Devices to Research Products In-Store These numbers underline the importance of retailers providing a seamless shopping experience across all channels. After all, according to Forrester, we are living in the Age of the Customer. Without a system to manage and reconcile inventory across all channels, brick-andmortar retailers risk losing sales from customers who have no patience to wait on unavailable products. Thus, the burden is on the retailer to create a universal shopping experience. The numbers also demonstrate that showrooming is indeed alive and well, especially among younger shoppers. Showrooming is the act of visiting a store to examine an item before purchasing it online, often for a lower price. SecureNet Payment Systems. All Rights Reserved The Way We Pay 02

6 Overcoming the Trust Barrier For shoppers over the age of 45, a secure checkout process is the most important factor affecting their decision to buy online. For those between the ages of 18 and 44, it ranks a close second. Top Factors Shoppers Say Impact Their Decision to Buy With security at the top of the consumer s mind, online retailers clearly need to overcome the trust barrier. The latest security technology, including endto-end encryption, tokenization at point-of-entry and predictive fraud tools, can go a long way if they re integrated closely with the acceptance of payments. Retailers with the right tech in place may need to reconsider how they are communicating with their customers on the topic of security. Consumer worries about security show clear differences segmented by channel. When asked which type of transaction they believe to SecureNet Payment Systems. All Rights Reserved The Way We Pay 03

7 be more secure, shoppers favored in-store transactions over online/mobile transactions by an astounding margin of nearly 5 to 1. Shoppers aged view instore transactions as more secure than online/mobile transactions by a margin of 9 to 1. Shopper beliefs about retailers security, both in-store and online, could have enormous implications for the holiday shopping season. The importance of trust isn t limited to online retailers. 45% of consumers say they are less likely to shop at a retailer that has recently suffered a data breach. Shopper Experience is King It s no secret that a seamless, intuitive user experience is key to retaining the customer all the way through the checkout process. It s even more important, it turns out, when the shopper is wealthy. Those making more than $150,000 annually are 17% more likely than the average consumer to abandon a shopping cart from their mobile device. Luxury brands, take note. Percentage of Shoppers Who Report Abandoning Checkout Process, by Income & Device Type 64% 80% 61% 78% SecureNet Payment Systems. All Rights Reserved The Way We Pay 04

8 To reduce shopping cart abandonment, retailers should focus on reducing the number of form fields required to check out. Another important tech fix: store payment info to enable one-click checkouts in the future no matter what device. What s more, retailers shouldn t be afraid of collecting shopper data as long as they can secure it and use it to provide value for the consumer. More than 3 in 4 (77%) of consumers say they would shop more frequently at a retailer that offers customized promotions or discounts based on their past purchases. Among the demographic, this number jumps to 85%. Nearly 1 in 3 shoppers say they would be more likely to buy from an online retailer that stores and automatically loads payment information upon checkout. And what if the item they buy doesn t work out? More than 65% of consumers say it is important for them to be able to buy an item online and have the option to return it or exchange it in-store. Cash Isn t Dead... Yet On a Typical Day, How Much Cash Does the Average American Carry with Them? Sorry, bitcoin. The U.S. dollar is still the reigning champ, for now. And Americans are increasingly relying on plastic, not cash, for purchases. More than 55% of consumers say they carry less than $20 in cash with them on a typical day. Among year-olds, it s 68%. SecureNet Payment Systems. All Rights Reserved The Way We Pay 05

9 As more consumers eschew cash in favor of plastic, it puts the burden on the small business from a jewelry company doing a trunk show at Nordstrom to a winery selling bottles at a tasting event to accept cardpresent mobile payments. Nonprofits may want to follow suit. More than 25% of year-olds say they would be more likely to make a contribution at a charity event if they had the option to donate by credit card. 1 in 4 Americans say they use their credit or debit card more than 10 times a week. That s a lot of swiping. The takeaway: no matter what type of business you re in, it s essential to be able to accept payments no matter how your customer wants to pay. About This Report The Way We Pay is a survey of 750 U.S. consumers, and subsequent analysis, architected by SecureNet with the goal of helping merchants and others in the payments ecosystem better understand the perceptions and behaviors of the American buyer. The report was released in November About SecureNet SecureNet has been streamlining the way businesses accept payments since Its integrated suite of payment tools is the simplest and most advanced way for merchants of all sizes to manage commerce in any environment: in-store, online and via mobile devices. SecureNet s cloud-based platform seamlessly integrates payments processing and inventory management, backed by detailed business analytics that help merchants make informed decisions to grow their business. info@securenet.com SecureNet Payment Systems. All Rights Reserved The Way We Pay 06