New Afterpay research has revealed insights into the trends shaping the Australian commerce landscape now and by 2030.
The report titled Afterpay 2030: Solving The Consumer Equation, produced independently by research firm The Future Laboratory, sheds light on the technological, cultural and societal forces influencing the retail industry and the modern consumer experience.
Designed to empower merchants, retailers and brands looking to succeed now and into the future amid increasingly challenging economic environments, the report identified critical takeouts for brands:
Cultivate a sense of connection
To stand out, retailers and brands must find ways to connect meaningfully with consumers. For some brands, this might mean creating branded experiences or leaning into live-retail or ‘shoppertainment’, which is currently gaining traction across Asia.
For others, it will involve treating consumers more like members than customers, and giving them a more active role in the shopping journey. Still others will forge deeper connections with consumers by helping them bridge the gap between their values and their behaviour.
Offer equitable and empowering financial tools
To meet consumers’ needs, retailers need to consider how to support and enable spending while also addressing younger generations’ economic challenges.
The report found that there is likely to be an increase in accessible customer-centric tools and metrics within the fintech sector. Brands will need to keep abreast of new payment and credit services that offer visibility, choice and flexibility.
Brands will also need to keep financial security and privacy top of mind and consider embracing currencies, like cryptocurrency, which provide new ways for people to spend, save and live.
Harness technology to drive ‘smartsumption’
As more complex purchasing journeys emerge, and commerce settles into a hybrid model that blends online and in-person shopping, retailers need to work harder to acquire and retain customers. A crucial part of this will involve harnessing technology, especially AI, to create hyper-personalised experiences.
That means increasingly sophisticated AI-powered chatbots, as well as products that leverage sentimental analysis to deliver personalised experiences, and virtual flagship stores that offer immersive experiences.
Afterpay executive vice president and country manager for APAC, Katrina Konstas said, “At Afterpay, we are uniquely positioned to observe the myriad ways in which consumer behaviour and commerce are changing in Australia. The Solving The Consumer Equation report offers merchants a true insight into the changing needs of consumers of today – and in the future.
“The report looks at how to inspire connection with customers through the fusion of retail, technology and finance, and it reinforces the importance of driving value, nurturing brand culture and creating new paths to purchase.”