Pocket Shoppers Report - Understanding the importance of customer experience when shopping on the move - Elavon
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Pocket Shoppers Report Understanding the importance of customer experience when shopping on the move. December 2018 elavon.co.uk
Alice, a case-in-point
Alice works in London as a sales On the way home, she messages
executive for an advertising her boyfriend and they agree, finally,
company. Every morning, she to go to Amsterdam in three
buys a croissant and a coffee on weekends’ time. She purchases the
the way to the station. Here, she flights as her train passes through
purchases her monthly pass for Clapham Junction, while he books
zones 1, 2 and 3. Once on the train, their hotel on his way to his flat.
she books a table for a restaurant
on Friday night and gets tickets for Once home, she catches up on
a movie on the Saturday. The train a new TV series and uses her
is delayed for ten minutes and she mobile to pay a bill, download a few
uses the opportunity to organise apps and order an audiobook for
her music playlist. She repays the next morning.
a friend £20 that she borrowed
on Monday. At no point in the day has she
handled cash. The future of payment
At the office, she gets started on is here, now, and it is electronic.
her actions for the day. Later that How we harness it, facilitate it,
morning, she buys a snack from and make it as easy as possible
a vending machine and pays her for shoppers, is vital to our
rent. During lunch, as she’s eating commercial success.
in local park, she uses her mobile
phone to buy a dress that she tried
on the previous week.
02 | Pocket Shoppers Report
Executive
summary
The emerging pocket shopper Consumer attention is waning.
is one of the commercial Every minute we are bombarded with
phenomena of the decade. choice. In certain contexts, the act
Liberated from tills, ATMs and of choosing becomes the activity.
desktops, shoppers are now able Consider Netflix, for example.
to buy anything from anywhere. Many of us will recognise the feeling
The smartphone is the world’s largest of wading through choices only to
catalogue, and an impressive search reach the end of our evenings without
tool and sophisticated payment having made any decision at all.
device. There have never been more As we try to balance a continuum
buying options for customers who between work, leisure, family and time Apps are growing in popularity and
choose to shop online. The world has online, shoppers are more distracted will soon surpass traditional selling
become a ‘buy button’. than ever before. For customers websites as the channel of choice.
Mobile, according to our analysis, shopping via mobile devices, the More thought needs to go into
is the predominant channel used chances of distraction are enormous. the development of apps and the
at home and on-the-go. payment technology used to deliver
The commercial imperative for Consumer frustrations are a positive customer shopping
customer-facing businesses also on the rise. experience. One poor experience
(both consumer and B2B) is to make has a negative impact on any
There are many issues that
shopping online more flexible and future transactions.
concern shoppers when trying to
effortless, so it fits seamlessly with
check out and pay on a mobile
consumers’ busy lifestyles.
device, irrespective of age group The possibilities for
or geography. What is clear is that improvements are endless.
Cart abandonment rates are concerns around inconvenience, Often changes that need to be made
exceptionally high on time-wasting and lack of intelligent to eCommerce sites are not about
eCommerce sites. technology were considered more complete site overhauls. Tweaks to
Sites need to be fully optimised frustrating than issues consumers systems, and updating processes
for the best customer experience had paying for products. and introducing new technologies
possible to reduce the rate of cart can often make payments simpler
abandonment. Integrated payment and more secure.
systems that appear as an apparent
extension of a business’ eCommerce
offering are the most likely to reduce
the rate of cart abandonment and
keep customers returning.
03 | Pocket Shoppers Report
About Elavon
Elavon is a leading global payments company with more than
4,300 employees and operations in 10 countries. A subsidiary
of U.S. Bancorp (NYSE:USB), Elavon provides businesses
with the technology needed to accept payments from
customers, whether they are shopping in stores, at
home or on the go. Its platform is distinctive in that
it is common across countries, making it easier for
businesses to get their payment system up and
running quickly and securely.
Contents
Summary 5
Introduction 6
Key findings 7
Where is the mobile shopper? 9
Attitudes to mobile shopping 10
Fighting for attention 10
Consumer concerns 11
Business risks 12
The opportunities 13
Conclusions 14
What’s next? 15
Methodology 16
04 | Pocket Shoppers Report
Summary
This report explores the impacts at 30,000 feet. You can purchase
of the mobile shopping experience a diet plan in a queue of a fast
on consumers, and the multiple food restaurant, a trip on the
factors causing shoppers to Orient Express from the 6.45 from
abandon a purchase or simply Bristol, manage your banking
switch sites due to a poor shopping from a seaside pier and book your
experience on their mobile device. grocery delivery from a treadmill
at your gym.
With smartphone penetration above
90%, most of us can now buy This report examines the growing
almost anything from anywhere. role of mobile payments in
our lives. It looks at the core
It is now possible to buy a shovel requirements of shoppers,
whilst hiking in Snowdonia, from the their experiences, the potential
passenger seat of a car doing 70mph barriers to buying as well as
on a motorway, or on an aeroplane the opportunities.
05 | Pocket Shoppers Report
Introduction
This report serves as a guide for As today’s online consumers become
businesses who want to optimise increasingly savvy, this age of instant
their eCommerce offering and response is having an impact on their
understand from a customer’s patience levels.
perspective their mobile
Colin Close, shopping experience. People become easily frustrated
Managing Director when shopping on mobiles, this is
UK & International, Elavon eCommerce has become a key often due to external factors outside
sales generator for businesses, of a business’ control, such as trying
from the local independent store to shop whilst commuting, going
to multinational chains. Businesses for a walk. It is also due to factors
have invested in websites and that businesses can influence such
apps to promote their brands as poor website optimisation, slow
and products. It is now often the page speeds and poorly designed
case that online sales surpass apps which can ultimately lead to
instore sales. cart abandonment.
People are incredibly time-poor, To ensure the long-term success
which is why the ability to shop of your eCommerce strategy, it’s
online easily and seamlessly has important to use these invaluable
become crucial for today’s consumer consumer insights to help your
with mobile being the predominant business tailor its eCommerce
shopping channel used at home offering to the needs and
and on-the-go. expectations of customers.
This helps keep your customers
Consumer attitudes towards for the long-term and minimises
payments and spending habits the crucial cart abandonment rate.
are evolving as the range of
technologies and payment methods
available to consumers expand.
06 | Pocket Shoppers Report
Key findings
• 77% of respondents surveyed said that they would abandon a transaction
if they were pushed to a website they don’t recognise. Integrating payment
technology seamlessly into the vendor’s site is vital for maximising returns.
• 64% of respondents said that they prefer to shop at home via their mobile
device. There are evidently still barriers to shopping on the move.
It is not yet the commuter opportunity that it could be.
• 66% said that they would abandon a transaction out of principle if the
process became too difficult. A great deal of user experience research
points to customers’ increasing expectations that payment should be
simple and secure.
• 58% said that a poor mobile experience would impact their decision to
shop with the brand in the future. In contrast to instore experiences,
the opportunity to placate a shopper is not there on an app. This makes
the quality and simplicity of the process vital.
• 53% of consumers prefer to shop using the brand’s app over its website.
Many highlight complex processes for signing in and setting up accounts.
Integrated payment in apps is attracting more and more customers.
• 40% of respondents admit to getting frustrated when shopping or carrying
out payment transactions on a mobile. Again, a simple user experience
is key. Everything must be scaled to the app for simplicity.
• 40% said that not being allowed to pay with their preferred payment
method is a significant concern. This suggests that sites need to consider
wider and an alternative range of payment options particularly given that
consumers are shopping globally.
• Chief concerns with the mobile payment experience include repeatedly
re-entering personal details, forced sign-up processes, no payment
confirmation and long loading times. The days of queueing being tolerable
are gone. ‘Digital queueing’, in the shape of form filling, is rejected by many.
07 | Pocket Shoppers ReportPocket Shoppers
Chief frustrations for online
shoppers in the UK
77%
would abandon a sale if they
are pushed to a website
they don’t recognise
69 % 64%
feel annoyed when sites
force them to repeatedly prefer to shop
at home on their
re-enter personal details
mobile device
66 %
would abandon a sale if the
process became too difficult
!
58 %
said a bad mobile experience
would put them off shopping
with the brand again
53 % 40 % !#?*
prefer to shop admit to getting frustrated
on an app over when shopping or paying
a website on their mobile
said that not being allowed to
40 % pay with their preferred payment
method is a big concern
Source: Pocket Shoppers report by Elavon, eCommerce on the move, December 2018Where is the mobile shopper?
There have never been so many options for customers who choose
to shop online. We can now shop from the convenience of our mobiles,
tablets and apps whenever and wherever it suits us. This could be during
our commute, during lunch breaks with friends and family, or from the
comfort of our homes.
Whilst nowadays, we can shop Of those aged 18-24, 12% say
wherever we want, our data they are most likely to make
suggests that for most consumers purchases on their mobile device
53 %
the preference remains to do so from when they are out and about in
home, even if they regularly transact public spaces. This is significantly
on the move. higher than other age groups and
may suggest a change in
Most respondents, 64%, still prefer social norms as well as a better prefer to shop
to shop at home from their mobile ability to deal with ‘multi-tasking.’ on an app over
devices, compared to 36% that a website
prefer to shop on the move.
During my lunch
One in three transactions, in other
at work 6% During the
words, is significantly mobile. 40% admit to getting frustrated when
Other weekend at
The remainder are carried out when When I’m 4% home 19% shopping or paying on their mobile.
stationary or moving around the commuting Despite the app development
house. This trend is consistent 11% goldrush, 47% of consumers still
across all age groups. prefer to shop using a website over
an app. More surprisingly, younger
Shopping consumers (18-24) are the least
on the move likely to shop via an app at 22%,
18-24 year olds
compared with 30% of those
aged 45 and over. In part this
64%
may indicate their spending power,
but it may also reflect their relative
When out During the lack of brand loyalty. Merchant apps
and about e.g. weekday
prefer to shop local park, evenings at rate more highly with women (30%)
at home on their coffee shop At home during home 24% than men (25%).
mobile device etc. 12% the week 24%
Even small businesses can be open 24 hours a day – and that’s right because
consumers want to engage with you whenever they choose. Even if your
shop supports a local geographic area, people can still order online from
wherever they are—at home, at work or en-route through mobile platforms.
Businesses realise that they need to provide the option to buy whenever
and wherever consumers are located. This can be the difference
between winning or losing a sale.”
Kevin Salaman, Head of Global Omnicommerce, Global Product & Innovation, Elavon
09 | Pocket Shoppers ReportAttitudes to mobile shopping
Fighting for attention
Consumer attention is waning. Estimates suggest that the average
As we try to balance a continuum 18-24 year-old has between 60
between work, leisure and family and 90 apps on his/her smartphone.
and time online, shoppers are more
40 %*!#
Channels such as WhatsApp,
distracted than ever before. Twitter, Facebook, Messenger,
For time-poor consumers shopping Snapchat, texts and voice
via mobile devices on the move, calls constantly interfere with
the chances of greater distractions admit to getting potential transactions.
(online and offline) are very high frustrated when
due to environmental factors. shopping or paying
One quarter of adults feel they don’t on their mobile Shopping while distracted
have enough time when shopping on When shopping on a mobile,
a mobile. Factors, such as network consumers are easily distracted.
coverage, complex commutes, 40% of respondents surveyed This trend decreases with age.
social pressures and inbound calls admitted to getting frustrated when
negate an orderly and relaxed shopping or carrying out payment
buying experience. transactions on a mobile. Younger 44%
generations are most prone to 39%
37% 36%
Our research shows that 36% of irritation, with 52% of the 18-24 age
31%
respondents admitted to being less group indicating that this happens 29%
patient when shopping or carrying out regularly. Older generations appear
payment transactions on a mobile. to have more patience with mobile
The results are much higher in the shopping, with 25% of those over
18-24 age group with 53% saying the 65 saying that they get frustrated.
often ‘multi-task’ when shopping on This, in other words, is not at face 18-24 25-34 35-44 45-54 55-64 65+
a mobile, compared to 22% of the value a technology issue. It can be
55-64 age group. The implications of generational with younger people
this for merchants is clear. A simple as digital natives having high
transaction process is vital, especially expectations in the look, performance
with younger consumers. and user-experience of technology.
Mobile phones are ubiquitous and often used while doing other tasks. Consumers
shop whilst commuting, when on a lunch break at work, or when two-screening
in the evening. All too often, they abandon their shopping carts when they
lose the internet connection, run out of time, or simply get distracted.
One-click checkouts, shopping carts that keep items in your basket for
your next visit and reminder emails help drive more conversion.”
Joanna Bedward, GTM & Commercialisation eCommerce Product Manager, Elavon
10 | Pocket Shoppers ReportConsumer concerns related to ease of use
There are many issues that concern consumers when shopping on a mobile device, irrespective of age group or
geography. Our research focused on the concerns that consumers had when they were about to check-out and pay.
The biggest concern highlighted of respondents highlighted their
by respondents (69%) was frustration with sites that use a forced
annoyance when sites force them sign-up process to make an order.
to repeatedly re-enter personal
40 %
details, particularly if they had either The third biggest issue was not
(a) already entered personal details receiving a confirmation message
as part of shopping (b) had shopped after payment (51%), leaving
on the site previously. Secondly 54% customers unsure if they had bought said that not being
their products. In some cases, allowed to pay with
this leads them to buy the same their preferred payment
method is a big concern
item multiple times or contact
69 %
customer support.
However, when it comes to payment,
not being allowed to pay with their
From the customer perspective, these preferred payment method is
feel annoyed when issues waste time and undermine the a significant concern. Just over 40%
sites force them to potential convenience of a mobile highlighted this issue suggesting
repeatedly re-enter transaction. More complex issues that sites need to consider a wider
personal details around actually paying for goods and and an alternative range of payment
services appeared to be less frequent options given that more consumers
an obstacle. online shop globally.
Chief dislikes when 29% 50%
28% 44%
consumers are trying to Consent check boxes that are hard The payment page ‘hanging’ or server
check out are as follows: to understand timing out after clicking PAY NOW
20% Female 43% 56%
11% Male 38% 46%
When you have no opportunity to add Not being allowed to pay with my No confirmation message
last minute items to the basket preferred payment method after payment
16% 45% 58%
15% 46% 50%
No ‘one click’ option when returning to Forms requiring unnecessary or totally A forced ‘sign-up’ process in order
the same shop irrelevant info / marketing questions to make an order
28% 48% 70%
27% 44% 68%
Difficulty inputting data i.e. inappropriate Being interrupted by multiple new pages Sites that force me to repeatedly
keyboards – qwerty vs numberpad or page refreshes re-enter my details
Businesses spend a lot of time and effort on creating slick-looking websites,
but they sometimes forget that the final payment experience can let down
this hard work. There are lots of improvements you can make such as
seamlessly passing information you’ve already got from your shopper;
embedding payment forms within your website so the shopper feels like
they are still on your site; using data validation of card details so the shopper
has confidence in their progress; and minimising the steps involved.”
Kevin Salaman, Head of Global Omnicommerce, Global Product & Innovation, Elavon
11 | Pocket Shoppers ReportBusiness risks
As highlighted on page 11 of this same level of customer service in all
report, perceived barriers to payment shopping environments.
when shopping on a mobile website
will stop consumers from buying on
77% your website. 66% of respondents
said that they would abandon
a transaction out of principal if the 58 %
would abandon a sale
process is too difficult.
if they are pushed to said a bad mobile
a website they don’t experience would put
recognise them off shopping
with the brand again
Businesses must ensure that
their eCommerce sites are fully
66 %
would abandon a sale
By ensuring that the customer’s
online journey runs as smoothly and
optimised for the best customer if the process became seamlessly as possible, businesses
experience possible, to reduce the too difficult have a better chance of keeping
rate of cart abandonment. 77% shoppers on their website, and
of respondents surveyed said that !
more importantly, ensuring that they
they would abandon a transaction check-out and return.
pushed to a website they don’t
recognise. This can often happen This also links to a wider consumer “Most Mondays I tend to buy
with online payment systems trend in the decline of brand loyalty. a new film for download on my
where customers are pushed to With the many options now available way to work. The trouble is that
a third-party or a separate window to online shoppers, it is easier than there are loads of tunnels on
opens. Integrated payment ever before to switch to other sites my train journey which means
systems that appear as an and brands if they are not happy. that the signal cuts out.”
invisible extension of a business’ 58% said that a negative mobile
eCommerce offering are most experience would impact their
likely to reduce the rate of cart decision to shop with the brand “I love buying on the move.
abandonment and keep customers in the future. 53% of respondents I’m an eBay fanatic and I’m often
out when auctions are ending.
returning. This comes back to indicated that a deficient online
I’m that person you see
simplicity and convenience for the shopping experience has the same
standing on the platform
customer, but trust in the brand impact as a negative experience
and missing his train.”
remains key. instore; consumers expect the
Brand cache is not just about creating a personal identity with a particular label,
shop or service. Increasingly, if the customer experience is poor or there
are barriers to purchasing, businesses can actually cause brand aversion.
Consumers are looking for a holistic, superior brand experience. If you
look at the recent growth of microbrands, these companies are excelling
in eCommerce. They have well-designed products and cleanly presented
websites. These companies are making the ease of shopping and
a simple payments integral to their brand experience.”
Claire Halligan, Head of eCommerce Europe, Business Development, Elavon
12 | Pocket Shoppers ReportThe opportunities
Undoubtedly, there is a considerable
amount of choice available in
the online payments market.
Improvements centre on making
tweaks to existing payments
systems and updating processes
rather than large scale reform.
The research has shown that there The most common suggestions from
is an inverse correlation between the consumers to improve the payment
most significant issues frustrating process are as follows:
customers and the cost to remedy.
Many of the customer concerns 1. Making the process quicker and simpler to use.
(no storage of inputs, forced 2. Faster payment processing.
sign-up processes and no payment
3. Having a PayPal option on all websites.
confirmation message) are low-tech
4. Not having to repeatedly input information.
issues and require focus rather
than resource. 5. Rewards for loyalty.
6. Faster loading times.
“My screen is really small, and
Payment choice is obviously 7. Mobile optimisation. my sight isn’t great. Making it
important to the customer,
8. No adverts. easy is really important.”
particularly due to the global nature
of online shopping, but not at the 9. Live chat for help.
expense of the customer experience. 10. Remove the need to sign up.
For those who are falling behind,
speed and security across fewer “I always browse for things to buy on the way
channels should be the focus home on pay day. What’s frustrating is that
rather than rolling out poorly so many sites still look like desktop versions
constructed and under supported and I have to fill in loads of detail. I tend
eCommerce platforms. to give up in those cases and go back
to texting friends.”
13 | Pocket Shoppers ReportConclusions Today’s online shopper is always connected and is often ‘multi-tasking’ online whilst working, travelling or socialising. Shopping at home remains the dominant preference though there is a growing trend, particularly among younger generations, towards ‘sociable’ mobile shopping – out and about in coffee shops, parks and restaurants. Despite the considerable investment As one survey respondent issues or risk losing ground to more that has gone into mobile payments, summarised: agile competitors. After all, undivided there are two factors mitigating shopper attention is hard to come against greater user engagement “I want a simple website by – and abandoning a difficult or on the move – wading through that is easy to navigate tiresome transaction is often just the distractions that bombard us and a rapid check-out a swipe away. on mobile devices and creating a experience.” universal user experience that makes payment a quick and reliable process. Our findings show that for many Most of the eCommerce problems people, shopping on a mobile device highlighted in this study are not is often highly frustrating. Consumers difficult to rectify. Increasing numbers expect eCommerce sites to provide of people use their mobiles on the fast and secure service but also move to shop, pay bills and manage one that is easily accessible. This services. Businesses must be simplicity must be balanced with mindful of the constant distractions intelligent design that can truncate and waning patience levels of their the required level of human input average customer. eCommerce sites to a minimum. need to address these fundamental 14 | Pocket Shoppers Report
What’s next? We expect app adoption rates to surpass traditional selling websites in the near future, as consumers of all age groups become more used to using apps. In parallel, they are likely to become more sophisticated and ultimately more valuable to the consumer. Many apps are currently more of a brand channel than for eCommerce and have underinvested payment technology. This needs to be rectified to address customer concerns and make apps more efficient and profitable. Another complex challenge for eCommerce sites need to function opportunities ahead as cultural eCommerce is to tailor the best globally and be flexible in balancing and user experience obstacles payment options to assist with the payment options available to the are addressed. For those who the customer journey, depending customer depending on the country can overcome some of these on the type of purchase they are they are buying from and the type of widespread issues, there is an making. There is a balance that needs purchase they are making. opportunity to build loyalty with to be found between having too many shoppers who will always choose payment options which will deter Right now, we are living in convenience over brand alone. a customer and not having enough. a quasi-mobile payments In the age of the global shopper world. The promise of bigger 15 | Pocket Shoppers Report
Methodology
Our study of more than 2,000 consumers examined the key concerns for
shoppers using mobile devices. The survey was carried out via Bilendi,
an international market research company, which collected and
compiled the data in July 2018.
Consumers were asked about their everyday experiences with mobile
shopping, the most common environments where they are likely
to shop and the specific issues they encounter.
The data was segmented as follows:
• Age range (18-24, 25-34, 35-44, 45-54, 55-64, 65+)
• Gender (Male, Female)
K region (North East, North West, Yorkshire and the Humber, East
• U
Midlands, West Midlands, East England, London, South East, South West,
Wales, Scotland, Northern Ireland)
• Annual household income (From below £19,999 – more than to £150,000)
16 | Pocket Shoppers ReportWe make it possible. You make it happen.
0800 028 1662 elavon.sales@inter-act.co.uk elavon.co.uk Follow us
Elavon Financial Services DAC, trading as Elavon Merchant Services is authorised by Central Bank of Ireland and the Prudential Regulation Authority and subject to limited regulation by the Financial
Conduct Authority and Prudential Regulation Authority. Details about the extent of our authorisation and regulation by the Prudential Regulation Authority, and regulation by the Financial Conduct
Authority are available from us on request.
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