Adyen’s first Canada Holiday Report, commissioned by Angus Reid, finds that more than half of Canadians (58 per cent) said the most important factor when deciding where to shop this holiday season is a store they are loyal to and have had past experience.
The report also reveals that the checkout process will dictate whether Millennials and Gen Z decide to spend or not, with many also demanding that they have an integrated checkout and payment experience that is connected online and in-store. But only less than half of Canadians are usually satisfied with the return experience when they purchase a holiday gift.
“The retail industry is evolving, and we must recognize the changing needs and desires of Canadian shoppers at every age. How Millennials and Gen Z prefer to shop versus Boomers and the older Canadian population directly impacts which brands they’re loyal to,” said Adyen Canada Country Manager, Sander Meijers. “This holiday season, retailers will need to double down on their payment processes to ensure that they are meeting shoppers where they are – whether it’s online, in-person, or both. A seamless retail experience means convenience at every touchpoint, including speedy checkouts and convenient returns.”
Meijers said the most important finding from the report that he keeps seeing come back and back is that consumers don’t really care about where they’re buying or where they’re returning.
“For a merchant, a brand, a retailer, they don’t care where the contact is whether it’s online or in store. Consumers really want to have one experience,” he said. “Think about paying. They don’t want a different experience in the store than they see online. If they think about loyalty, they don’t want to be recognized online but then not be recognized in store when they pay or when they sign in.
“When they think about returns, they really don’t want the fact that whatever they bought online can’t really be returned in an easy way in store or what they bought in store can’t really be sent back to a random location and they get it funded on their e-commerce wallet for that matter.”
Meijers said unified commerce is important for retailers today. Customers should feel the same way in all retail touchpoints and they should be treated in the same way.
He said brands are really trying to do that today, and they acknowledge that, but they’re having troubles in the background. Historically, it’s been two completely different systems. Technology has been built to help with their online experiences and there was already technology there for their brick and mortar stores.
“These two technologies have not been connected. So what you end up with is a lot of manual work and I think brands recognize this and they’re struggling. They’re patching refund processes together and the shopper feels that. I think brands are recognizing the need but they’re just struggling to really get it in a seamless experience because their technology is just not connected.”
Adyen is a leading retail end-to-end, all-in-one payments solution for merchants across the globe.
The survey found that younger Canadians continue to drive the popularity of online shopping while older generations largely still prefer shopping in-store, and with that has come an increased desire and need for integrated payment solutions in the emerging world of “unified commerce.”
Survey highlights include:
- One in four Canadians say the speed of the checkout process dictates whether they spend or not;
- 54 per cent of young Canadians aged 18-34 say the single-most important thing for them when deciding which store(s) to shop from this holiday season is a store they are loyal to and have past experience with;
- 45 per cent of those aged 18-34 have not usually been satisfied with the return experience when trying to return unwanted items, nearly twice the proportion (24 per cent) of older Canadians (55+) who said the same;
- 44 per cent in the 18-54 age group say they are more likely to shop at stores that offer integrated in-store and online payments;
- Conversely, only 25 per cent of older Canadians (55+) say they are more likely to shop at stores that offer integrated payments, with 75 per cent saying it makes no difference to them;
- 58 per cent of Canadians say the single-most important thing for them when deciding which store(s) to shop from this holiday season is a store they are loyal to and have past experience with. This is more than twice the proportion who said “stores that offer seamless in-store and online return processes” (25 per cent);
- Young Canadians and older Canadians were aligned with the importance of brand loyalty, with 54 per cent of young Canadians agreeing that loyalty is the single-most important factor, and 65 per cent of Canadians aged 55+ agreeing as well;
- 45 per cent of those aged 18-34 have not usually been satisfied with the return experience when trying to return unwanted items, nearly twice the proportion (24 per cent) of older Canadians (55+) who said the same.
