Retailers lost USD 37.7 bln in potential sales due to long lines, Adyen study reveals

The survey was designed to understand consumers current and future shopping experiences, preferences, behaviors, and the impact of digital trends.

The study reveals that over the last 12 months, 86% of US consumers have left a store due to long lines, resulting in purchases at a different retailer or no purchase at all and approximately USD 37.7 billion lost in potential sales. In addition, USD 1.1 billion in potential sales have been lost due to the fact that retailers do not support their customers preferred payment methods.

A key segment emerged in the study, coined Spendsetters. This group loves to use digital technology, tends to be early tech adopters, and represents one third of all consumers and 52% of millennials.
Additional findings from the report include:

Understanding the Spendsetters:

• 45% believe brand is important and are willing to pay a premium for the experience;

• 42% prefer to shop online;

• 80% are comfortable using digital wallets;

• 86% have left a store due to long lines.

Spendsetters have three overarching shopping demands; convenience, context and control

Convenience (fast, easy and frictionless):

• 75% would shop more in-store with a just walk out payment experience;

• 69% would shop more in-store with shorter lines and direct shipping of out-of-stock products

Context (personalised):

• 57% say the ability to check if an item is available online before going in-store would increase their loyalty to a retailer;

• 53% prefer a store with a mobile loyalty program;

• 72% would shop more with personalised product recommendations and coupons, based on location;

• 61% want personalised experiences based on past purchases and preferences.

Control (interact on my terms):

• 59% want to use a store-branded app to pay onsite;

• 80% are comfortable using digital wallets;

• 53% would shop more online if they could use a chatbot with personalised recommendations;

• 80% percent would increase shopping frequency online through marketplaces.

The research, The cost of convenience, was conducted by 451 Research in March 2018 and covered 1,003 US consumers aged 18 and above and 250 B2C retailers that operate in the US.

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