There’s an influential group of shoppers that supermarkets and retailers of all stripes must get to know better: “Spendsetters.”
Coined in a U.S. consumer study from global payments platform Adyen, Spendsetters account for a third of all shoppers and 52% of Millennials. This group also embraces digital technology and tends to be early adopters of new tech-driven solutions. As a result, they’re expected to set the trends for how people spend and shop and be a barometer of how the retail experience is meeting customer demands, Adyen said.
A telling finding for brick-and-mortar retailers: Over the last 12 months, 86% of the more than 1,000 U.S. adult consumers polled said they’ve left a store because of long lines. That resulted in purchases at another retailer or no purchase at all, representing about $37.7 billion lost in potential sales. Also, $1.1 billion in potential sales have been lost when retailers don't support customers' preferred payment methods.
"The lines between the physical and digital shopping worlds are dissolving," according to Roelant Prins, chief commercial officer at Amsterdam-based Adyen. "Retailers need to cater to shoppers by offering fast, easy and frictionless ways to pay so there are minimal lines and offer personalized recommendations and in-store deals. In other words, experience is key."
Adyen’s survey found that 45% of Spendsetters think brand is important and will pay a premium for the experience. Forty-nine percent love to shop, and 42% prefer to do so online.
Shopping demands for Spendsetters generally center on convenience, context and control, according to the study.
In the area of convenience, 75% of Spendsetters acknowledged they would shop more in physical stores that offer a "just walk out" payment experience. Similarly, 69% would shop more in-store if there were shorter lines and direct shipping of out-of-stock items.
Personalization is key to Spendsetters’ context-focused shopping demands. Fifty-seven percent said their loyalty to a retailer would strengthen if they had the ability to check if a product they want is available online before going to a store.
Likewise, 53% of Spendsetters prefer a store with a mobile loyalty program, 72% would shop more if they had personalized product recommendations and coupons (based on location), and 61% seek personalized experiences according to past purchases and preferences.
Spendsetters also like more control over the shopping experience by being able to interact on their terms, Adyen’s study revealed. For example, 59% want to use a store-branded app to pay on-site, and 80% reported that they’re comfortable using digital wallets.
Also in the e-commerce realm, 53% of Spendsetters said they’d shop more online if they could use a chatbot with personalized recommendations. Eighty percent would step up shopping frequency online through marketplaces.
Adyen’s study, too, found that retailers are paying attention to the changing demands of today’s shoppers.
Of the 250 business-to-consumer retailers operating in the U.S. covered in the survey, 46% indicated they’re considering cashless stores. Sixty-four percent see a need for staff to use mobile devices to better assist customers, and 67% see more customers using their mobile phones in-store for coupons, payments and product information.