Technological payment advancements are a good thing, aren’t they? While the obvious answer is yes, new data from digital transformation consultancy, Daemon reveals that many Brits still prefer a traditional checkout with a cashier when shopping in-store.
Retailers have begun to introduce new payment innovations including Scan and Go, Click and Collect and Just Walk Out. However, research from Daemon has revealed that 60 per cent of respondents still prefer human interaction when paying. Only 26 per cent preferred Scan and Go, 14 per cent Click and Collect, and just under five per cent Just Walk Out. This highlights the last appeal of personal touchpoints in the evolving customer shopping experience.
Interestingly, 71 per cent of Baby Boomers preferred traditional checkouts. While this is 11 per cent over the average, only 59 per cent of Millennials and 46 per cent of Gen Z shared this preference. Interestingly, 56 per cent of Gen Z favour service-assisted checkouts, a preference that declines with age. Only 51 per cent of Millennials and 40 per cent of Baby Boomers opted for this method.
Online interaction trends
While in-store shopping preferences lean towards human interaction, the online customer experience appears to be in disarray. The data reveals that 57 per cent of consumers find long response times to be the most frustrating aspect of contacting online customer service. This is followed closely by difficulties in resolving issues or complaints (42 per cent). Unfriendly or unhelpful staff (29 per cent) were also noted as key challenges.
Fifty-five per cent of Baby Boomers showed a strong preference towards customer service via phone. Thirty-one per cent were usually satisfied when using this channel and often got the resolution they needed.
In contrast, 44 per cent of Millennials and 43 per cent of Gen Z prefer using email. Across all generations, social media ranks as the least favoured customer service method. Additionally, 23 per cent report they are never satisfied with the answers provided by online chatbots. Further, 28 per cent say that an exceptional customer experience would make them more likely to continue shopping with a retailer.
Jimmy Headdon, head of delivery excellence, Daemon comments: “As a truly multi-generational society, retailers are navigating a plethora of preferences and abilities, which makes delivering a seamless in-store and online customer experience a complex challenge. No matter how customers choose to engage—whether in-store or online—these experiences need to be aligned for success.”
What causes cart abandonment
Customer experience goes beyond just post-purchase support—it extends to the payment process. However, this is often overlooked and can be a critical factor in whether customers complete or abandon their purchase.
Payment preferences also vary by generation. Nearly a quarter of Millennials (24 per cent) and 20 per cent of Baby Boomers are very likely to abandon their purchase if credit/debit card is not available. Meanwhile, 20 per cent of Gen Z are likely to walk away if digital wallets aren’t offered.
Headdon continues: “The connection between payments and the overall customer experience is stronger than ever. Retailers need to recognise that payment methods are a vital part of the customer journey. With the purchasing power of younger generations growing, businesses need to ensure they are offering flexible payment options to tap into this market. To stay ahead, businesses must approach these elements not in isolation, but as integral pieces of a seamless, unified experience.”
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