Here's how retailers can master the year-end shopping frenzy

This year, Adyen processed US$34 billion across 670 million transactions over the Black Friday/Cyber Monday (BFCM) weekend – giving us a front-row seat to payment trends as peak season takes off. 

It’s without a doubt that retailers are in the midst of a high-stakes period that began with Singles’ Day and continues right through to Christmas, with this stretch brimming with opportunities for retail sales growth. But as shoppers get ready to splurge, the crucial question is – are retailers ready to deliver? 

While this time of year offers retailers significant opportunities to capture sales, it also presents unique challenges, including an inevitable rise in fraudulent activity. To maximise revenue and optimise operations, retailers must adeptly navigate this busy period by not only enhancing the customer experience but also implementing essential security measures across both in-store and e-commerce settings.

Managing Increasing Footfall In-store

With many consumers starting their peak season shopping earlier with each passing year, retailers can no longer afford to wait until Christmas to get their operations in gear. To begin, retailers must ensure that staffing levels are primed and ready to meet the influx of demand while maintaining top-notch service throughout the season. Well-prepared teams can make the difference between a satisfied customer and a lost sale, ensuring every shopper receives the attention they expect during this busy time.

Alongside amply-trained personnel, equipping staff with innovative technology like mobile Point-of-Sale (mPOS) systems can help transform the in-store experience and streamline operations. When in place, these systems allow associates to process transactions directly on the sales floor to reduce congestion and long wait times, letting customers spend more time enjoying their shopping journey instead. With the help of these tools, retailers can expedite service, eliminate bottlenecks and create an efficient, engaging experience that keeps customers coming back.

Personalised loyalty programmes also go a long way in capturing revenue. The key lies in efficient customer recognition and here’s where data can come in handy. Take payment-linked loyalty programmes as an example – shopper information collected via payment methods like “Tap to Pay” connects loyalty programmes directly to customers’ data profiles on the backend. This dual-benefit system sees increased convenience for shoppers who can now skip the hassle of presenting a physical card or logging into a separate mobile account at checkout, and for retailers who can easily recognise an individual and tag customised rewards to their shopping journey. These systems encourage repeat visits by providing timely and tailored benefits.

Case in point is Prada Group, where customers of the luxury brand can now directly check out with sales associates using Tap to Pay on iPhone technology – whereby all forms of contactless payments can simply be conducted through any iPhone – removing the need for traditional registers and additional hardware or terminals altogether. With 55% of shoppers abandoning their carts if they can’t pay as they wish, the brand now has a unified omni-channel strategy that maximises customer satisfaction and engagement across all touch points.

Safeguarding The Surge In Online Transactions

Beyond having the right resources to manage the surge of customers in stores, handling web traffic and identifying fraudulent online transactions are crucial for retailers during peak season. As online transactions skyrocket, it is essential for retailers to consider robust strategies to safeguard and streamline the checkout process to minimise cart abandonment and reduce losses.

This includes tapping on network tokens which allows transactions to be processed without transmitting or storing sensitive information and are specifically designed to improve the security and experience of online and recurring payments where customers can enjoy a simplified verification process.

A well-oiled refund and exchange process is also key during peak season, especially with big-ticket purchases. When customers know they can count on easy returns or exchanges, it fosters trust in the brand – turning the challenges of peak season into opportunities to deepen customer loyalty.

That said, these solutions will need to be built on top of a robust risk management and revenue protection strategy to handle high transaction volumes and maintain a smooth customer experience. Identifying hot-ticket items is also key, given their increased appeal to fraudsters.

Building a Foundation of Trust through Risk Management

In today’s age, trust is the backbone of repeat business and establishing it starts with fraud prevention. Robust risk management and revenue protection strategies are vital in preventing losses that can quickly add up, impacting inventory planning and profitability. Besides, when poor fraud detection systems miss high-demand items, retailers face aggravated losses for missed sales. Retailers should proactively identify the top three most desired items to anticipate and secure these targets from fraudsters. 

One way to distinguish legitimate customers from fraudsters is through the implementation of 3D Secure technology, which supercharges safeguards with an additional layer of verification (whether through biometric identifiers or two-factor authentication) for online transactions. The likelihood of fraudulent purchases slipping through is reduced, with each transaction relying on more than mere card details for verification. This not only protects revenue but also assures legitimate customers that their transactions are secure, fostering trust and encouraging future business.

Transforming One-time Buyers into Loyal, High-spending Customers

For retailers, the mega sale season is more than just a year-end event but an opportunity to build lasting relationships that transform one-time buyers into loyal customers. Creating a positive experience is key to building rapport, setting the stage for repeat purchases in the year ahead. 

From quick and seamless checkouts to efficient refund and exchange processes, it’s imperative retailers approach the holiday rush with a well-planned strategy. By tackling these demands head-on, they can navigate the peak shopping season successfully, enhance customer satisfaction and bolster their bottom line for the new year ahead.