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Retail’s 3 Ps for making the holiday season the most wonderful time of the year

Retail’s 3 Ps for making the holiday season the most wonderful time of the year

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In making a commitment to simplify payment, embrace personalization, and go passwordless, retailers can create a more frictionless and secure holiday shopping experience both in-store and online.

With numbers like $936.3 billion in consumer spending during the 2022 holiday season, it comes as no surprise that retailers rely on Q4 earnings to bolster revenue for the entire year. But as welcome as that influx in business is, it’s hard for retailers to ignore the significant strain a rise in traffic puts on their customer experience infrastructure.

To enable secure and frictionless online customer experiences, there are three key areas that (although simple) make a huge experiential impact on the buyer’s journey. They are:

  1. Payments.
  2. Personalization.
  3. Passwordless.

Focusing these three areas can enable a customer experience that supports high-traffic events like the holiday shopping frenzy. Retailers who can nail this hat trick are not only well positioned to improve the shopping experience of holiday consumers, but to attract and retain year-round, life-long customers.

Payments

In 2023, retailers are facing an average cart abandonment rate of more than 70%. Consumers list long or complicated checkouts, input redundancies, and too few payment options among the top reasons. By simplifying checkout and payment for customers, the more purchases will be completed.

Retailers should implement a one-click payment option tied to Apple Pay, Venmo, Google Pay, Amazon, and/or PayPal. By minimizing the amount of time (and number of clicks) between a customer deciding to make a purchase and actually paying, you can increase overall sales and lower your cart abandonment rate.

This is called a conversion rate optimization strategy. You can extend your CRO strategy to in-person shoppers by offering in-store payment via an app, which would allow customers to scan a barcode and walk out without waiting in line for a cashier or self-checkout station. From online to in-store, the best shopping experiences are seamlessly connected.

Personalization

By creating a tailored shopping experience, retailers can stand out to customers and improve individual customer satisfaction. You can create a more personalized customer experience by leveraging a digital identity strategy that includes a greater degree of security in the process.

Digital identity is what drives and informs any retailer’s efforts at personalization. The more you know about each individual customer, the greater your ability to create a highly personalized shopping experience becomes.

Not only does digital identity provide personal information pertaining to who a customer is, it allows you to predict certain behaviors and preferences based on how they engage with your digital environment. Beyond knowing a customer’s size, socioeconomics, and age demographics, you can also make guesses about what products they might be interested in, what occasion they’re shopping for, what they value most as a consumer, and more.

By bringing identity to the center of your marketing strategy, every touch point becomes an opportunity to offer personalized help, suggestions, or offers based on what you can infer about a customer. It’s also an opportunity to improve future personalization for even better results.

Passwordless

Online shoppers are hugely often deterred by prompts to log-in or sign up at any point in their buyer’s journey. This ties directly back to the issue of cart abandonment; shoppers are much less likely to follow through with processes they perceive to be long or complex. For many consumers, the prospect of adding one more password to the list of credentials they’re responsive for is enough to click away and shop somewhere else.

How can you get customers to follow through with account creation, log in when they have an account, and ultimately complete their purchases? The answer is to go passwordless. After all, logging on is much easier when all customers must do is be themselves.

Passwordless unlocks secure, seamless customer registration and log-in for a simplified user experience. With passwordless authentication, customers can create an account based on who they are rather than what they know. Not only is this method more popular with users, but it’s also a more secure phishing resistant alternative to traditional passwords.

The risk of account takeover is greatly reduced with passwordless authentication, and when breaches do occur, passwordless methods become central to zero trust function. When anomalies like large purchases, new locations, or changes in buying behavior are flagged, users can quickly prove their identity when prompted; bad actors won’t be able to.

In the world of retail customer experience, there are endless approaches organizations can take to improve their shopping experience. But with the holidays fast approaching, putting effort into these three areas is a great place to begin. “Payment, Personalization, and Passwordless” target the common pain points felt by holiday shoppers, and applying a focused effort in these areas can yield impressive outcomes. for a more positive customer buying experience.

In making a commitment to simplify payment, embrace personalization, and go passwordless, you’ll create a more frictionless and secure holiday shopping experience both in-store and online. During the holiday season, “frictionless” stands out. So, create the experience you want customers to remember; a shopping experience they’ll actually want to engage with, not just this season, but all year round.

As Vice President of Solutions at BeyondID, Neeraj Methi is charged with leading architects, developing innovating solutions, scaling the organization to grow revenue and making customers raving fans. He has more than 20 years of experience in the domain of identity and access management, app development platforms, cloud security, cloud computing, and digital transformation. Prior to joining BeyondID, Neeraj served in leadership roles at Okta, OutSystems and CA Technologies.