Consumer demands for a frictionless, personalised experience that caters to their lifestyle needs will drive online retail trends in 2020, says Derek Cikes, commercial director at payment fintech Payflex. Cikes says that the result is a focus on customised experience that enhances online shopping and facilitates the buying journey.
According to Cikes, here are the top eight online retail trends for 2020:
1. Integrating omnichannel retailing
As shoppers expand their touchpoints with a brand, the online and bricks-and-mortar channels will increasingly merge into a seamless omnichannel experience within the brand ecosystem.
In order to facilitate this, merchants need to provide shoppers with an integrated shopping experience across all channels that allow shoppers to browse, shop and return items across in-store and online channels.
2. Expanding pop-up shops
2020 will see pop-up shops expanding beyond brand awareness to provide shoppers with a curated shopping experience. Leveraging the scarcity and exclusivity principles associated with these temporary storefronts, shoppers will have access to novel or limited brand items.
Brands, in turn, will have the opportunity to engage one-on-one with their customers while collecting shopper data. This intimate connection will also enable pop-up stores to take on a new position of facilitating brand experiences rather than only focusing on the commercial aspect of a retail pop-up store. By providing a compelling pop-up experience, brands are able to differentiate themselves and establish a unique relationship with their target market.
3. Optimising user experience
User experience will be optimised by levering online channels. Simplicity is the key, enabling the user to effortlessly navigate the website and find and acquire the desired items.
This includes reducing the number of steps to complete a payment transaction such as the seamless single click checkout process, which can dramatically increase sales conversions. The Payflex 1-click checkout process itself has reduced cart abandonment by 40% — a huge benefit for e-commerce merchants.
4. Securing online security
Concerns about online security and privacy are one of the challenges to growing online sales in South Africa. To provide comfort to shoppers, 2020 will see a focus on creating a secure online infrastructure and being transparent about the use of data. This is so that shoppers feel comfortable sharing their financial information.
5. Focusing on the customer journey
The year ahead will see online stores optimising the customer journey through each touchpoint with the brand. This will translate into establishing a strong online communications infrastructure, supporting customers through a variety of online and social media platforms throughout their purchasing journey.
This optimises the shopper's online experience, allowing the next steps to follow naturally — increasing conversions, customer retention and eventually brand advocacy.
6. Using alternative payment choices
Consumers are increasingly wary of incurring debt to purchase lifestyle goods, which has opened the door to alternative non-credit pay later solutions, such as Payflex. Customers want more control of their spending, encouraging the online retail industry to incorporate payment experiences that meet their needs.
7. Increasing online ubiquity
The increase in social media retailing demands a pervasive online brand presence where shoppers can engage in a seamless experience with the brand and buy products directly from social media channels in a contained, accessible environment such as Instagram.
8. Leveraging machine learning
The year ahead will leverage the capabilities of artificial intelligence and machine learning to provide more personalised shopping experiences. By using data and search history, merchants can curate products and services specific to the shopper's needs and likes.
This results in being able to customise each shopping experience, and is seen with sites like Amazon where automatic suggestions are made in addition to the purchase, as well as music sites such as Spotify or Deeza that leverage machine learning to provide a personal playlist based on a user's data and online search and listening history.
The inter-relatedness of consumer demands and technological innovations creates one of the central themes of online retail in 2020 — a symbiotic relationship between shopper and technology.
For more information, visit www.payflex.co.za. You can also follow Payflex on Facebook or on Instagram.
