This year, Australians have displayed remarkable resilience in the face of rising living costs, despite the latest Australian Bureau of Statistics revealing the annual inflation rate is nearly 3%.
This steady increase in prices has resulted in people being incredibly mindful of their spending. Rather than seeing this as a hurdle, retailers can view it as a unique opportunity to innovate and connect with their customers more meaningfully.
As we head into the biggest shopping season of the year, it’s not too late for retailers to make some adjustments to ensure they’re well-positioned to make the most of this festive period.
Last year, Stripe processed more than 300 million transactions with a total payment volume of more than $18 billion globally during the period of Black Friday and Cyber Monday, providing us with rich insights into how businesses can ensure they’re set up for success during the holidays and beyond.
- Optimise your checkout experience
Improving the efficiency of your checkout process is key to delivering a frictionless experience that encourages customers to complete their purchases, whether in-person or online. Stripe’s data highlights that 90% of customers will abandon their online purchases if the checkout process takes longer than three minutes.
By optimising checkout efficiency, you can turn potential drop-offs into confirmed sales. Employing a one-click checkout can tighten the process, increasing the likelihood of closing the sale.
2. Offer more ways to purchase
With consumers being incredibly thoughtful of their spending this year, offering a wide variety of payment options, including Buy Now, Pay Later (BNPL), gives customers the choice of how and when they pay, which can significantly improve purchasing decisions. Research shows 41% of Australians have used a BNPL service this year and expanding payment options could help convert interest into transactions.
To create a more efficient in-store experience, retailers can implement Tap to Pay on Android or iPhone payment experiences to expedite the checkout process for customers. This not only ensures shoppers are able to complete their purchases conveniently anywhere in the store, but also empowers staff to assist customers more directly, thereby reducing waiting and queues, and creating a more enjoyable shopping experience.
3. Personalise customer engagement to build loyalty
Retailers can also set themselves apart by focusing on personalised shopping experiences. Through unified commerce, retailers can manage online and in-person payments in one place for simplified reporting and a unified customer view. Utilising data analytics with a single view of the customer, businesses can then tailor marketing efforts to individual preferences, offering personalised discounts or product recommendations that resonate with each customer’s past behaviours and interests.
Businesses on Stripe have the option to encourage repeat purchases through the launch of subscriptions or memberships, free trials, coupons, and more with Stripe Billing. This personalised approach can create a sense of exclusivity and value for loyal customers longer term.
4. Entice international shoppers to expand addressable market
Attracting new customers beyond Australian shores will be a critical component to navigating economic headwinds. Research found by next year 66% of businesses worldwide will look to expand globally in order to reach new customers. With the depreciation of the Australian dollar, our products are becoming more competitive on the global stage, particularly in the UK and US markets.
Implementing an automated currency conversion will build transparency and trust with customers, eliminating surprise costs for them. Stripe’s Adaptive Pricing lets customers pay in their local currency in more than 150 countries, increasing conversion rates from global shoppers, thereby increasing retailers’ international revenue.
5. Build trust with flexible return policies and post-purchase support
Strengthening customer trust with generous return policies and robust post-purchase support can alleviate purchasing hesitance. Knowing they can return items hassle-free or receive dedicated customer service provides an added layer of reassurance at the point of purchase. By integrating custom payments reporting and refund workflows in advance, retailers can provide that peace of mind more easily for customers.
As Australians navigate a holiday season with financial mindfulness, retailers have an opportunity to stand out and even thrive despite the challenges. This is the moment for retailers to embrace adaptability because even amid tighter wallets and rising prices, a smart and thoughtful approach can transform this season into a celebration of new opportunities. While spending may be more conscious, it opens the door to building loyalty and creating memorable shopping experiences that resonate beyond the holidays.
Karl Durrance is managing director for Australia & New Zealand at Stripe.