Retailers are enhancing the customer experience.

Customer preferences are evolving and retailers are catering to their needs.

To keep up with evolving customer preferences, retailers plan to focus on adopting faster and easier communication channels, offering more in-store events and shopping experiences, doubling down on loyalty programmes, and accepting emerging payment methods. When it comes to emerging payments, buy-now, pay-later payment options (like Clearpay) and QR code payments are at the top of that list.

Payment methods retailers are now accepting:

58%: Cash
57%: Mobile wallet apps like Apple Pay or Google Pay
52%: QR code payments
47%: Traditional card payments
44%: Touchless card payments
43%: Buy-now, pay-later options like Clearpay

DID YOU KNOW?

Retailers who report accepting a buy-now, pay-later payment option have increased 10% since 2022, with an average of 43% of retailers now accepting these payments. Retailers can increase conversion rates by providing an easy way for customers to pay in instalments with Clearpay.
Acceptance of buy-now, pay-later options is growing in popularity, particularly in the United Kingdom (48%) and Australia (47%), compared to a slightly lower 39% of retailers accepting them in the United States and Canada.

While emerging payment options are on the rise, it remains critical for retailers to also offer traditional payment methods in-store in order to give shoppers more choice at checkout and appeal to the largest possible audience, from Gen Z to baby boomers.

Many in-store shoppers still prefer to pay using traditional card payments (33%) or touchless card payments (29%).

Gen Z in-store shoppers preferred touchless card payments and mobile wallet apps over other forms of payment.

Overall, 48% of in-store shoppers prefer contactless payment methods, up from 43% in 2022.

It’s essential for retailers to offer more choice at checkout, especially as they look to capture Next Gen consumers who are increasingly turning to BNPL solutions to enable them to budget and spread the cost of their purchases. Since adding Clearpay to the Square ecosystem of commerce tools, sellers can easily turn on BNPL capabilities to attract younger shoppers and drive incremental revenue to their businesses, all while managing these omnichannel orders on one platform.

— Alex Fisher, head of revenue at Clearpay and CashApp, Global

Customers want to hear from their favourite brands.

In order to keep customers engaged, it’s important to communicate frequently through email, text, and social media.

As 36% of retailers are planning on expanding and diversifying their customer base as well as deepening connections with customers in the next 12 months, reaching customers through their preferred channels is the first step.

DID YOU KNOW?

82% of global consumers agree that receiving communications from local businesses makes them feel more connected to the business. Only 18% of consumers reported that communications don't make them feel more connected, so don’t be afraid to reach out. Using Square Marketing email marketing, retailers can build stronger customer relationships and drive repeat business.

Reaching customers how they want to be reached:

91% of global consumers are interested in businesses using any channel to communicate with them, and 52% are interested in communication via social media channels specifically. Both of these numbers are up from 2022.
Of all communication channels, consumers in total prefer email, followed by Facebook, then text message.
However, Gen Z prefers email communication less than all older generations, but prefers text message, Instagram, and TikTok communication more than all older generations.

DID YOU KNOW?

When expanding your customer base, keep in mind that 67% of total consumers say recommendations from family or friends are important when considering visiting a local retailer, and 54% say a website or social media is important in their consideration. A retailer's social media is even more important for Gen Zers and millennials, while a shopfront is more important to Gen X and baby boomers. Developing a strong online and offline presence is critical to maximising your reach.