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Discover the latest retail trends and strategies to thrive in a changing economy. Afterpay and Square's comprehensive data analysis offers invaluable insights into consumer behavior and business opportunities. From enhancing in-store experiences to embracing omnichannel strategies, find out how to attract new customers, boost revenue and future-proof your retail business.

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The economy seems to be a constant topic of conversation these days. In light of all of the recent volatility many retailers may be wondering how consumers are thinking about spending and what they can do to prepare their businesses. Based on Square and Afterpay U.S. data, consumers are still spending and the retail industry is growing.&nbsp;To help retailers understand trends in the industry, Square and Afterpay have paired data from purchases made by millions of shoppers with sales from hundreds of thousands of retail sellers. Below are three things you should do to meet customers how they’re shopping today.<h5>Give shoppers a reason to come in-store</h5>During Covid there was a massive increase in online shopping, for obvious reasons. Despite this increase in online shopping, in-store shopping has rebounded and in a <a href="https://www.pwc.com/gx/en/industries/consumer-markets/consumer-insights-survey.html" rel="noopener noreferrer" target="_blank">2023 survey</a> by PWC was found to be the method of shopping most common to the average shopper, slightly above mobile, 20% above PC, and 28% above tablet.&nbsp;Many retailers have sensed this shift back in-store. In <a href="https://squareup.com/us/en/the-bottom-line/selling-anywhere/future-of-retail" rel="noopener noreferrer" target="_blank">Square’s 2023 Future of Retail report</a>, 94% of retailers reported a focus on enhancing their in-store customer experience, turning commerce into an event. Even with foot traffic back into retail locations increasing, it’s imperative that you give customers a reason to stop by outside of your core offering.&nbsp;For example, many retailers are adding food service. The <a href="https://squareup.com/us/en/press/square-afterpay-state-of-retail-report" rel="noopener noreferrer" target="_blank">Afterpay and Square State of Retail report</a> found that in retail locations the hiring growth of baristas, servers, and bartenders has outpaced overall hiring growth by 8x. Restaurants are already thinking ahead of the game here — an average of <a href="https://squareup.com/us/en/press/2023-future-of-commerce" rel="noopener noreferrer" target="_blank">20%</a> of revenue now coming from products and services (definitely outside the lane of food!).&nbsp;

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The hiring growth of baristas, servers, and bartenders has outpaced overall hiring growth by 8x

We refer to this growing trend as <a href="https://squareup.com/us/en/the-bottom-line/operating-your-business/multihyphenate-businesses" rel="noopener noreferrer" target="_blank">multihyphenate businesses</a> - businesses&nbsp;that diversify their revenue by adding non-core offerings. Think of the coffee shop in your neighborhood that has hoodies sitting next to the register (which also serve as marketing for your business out in the wild!). With consumer trends seemingly changing by the day, you never know what outside-the-box offering can resonate and take off, while also building loyalty to your business.&nbsp;	Tip: <a href="https://squareup.com/us/en/the-bottom-line/operating-your-business/yo-tambien-multiple-revenue-streams" rel="noopener noreferrer" target="_blank">Read about this restaurant</a> that has 9 different revenue streams.Need some other ideas? <a href="https://squareup.com/us/en/press/square-afterpay-state-of-retail-report" rel="noopener noreferrer" target="_blank">Our data</a> found that consumer spending on services, such as spas, cultural and recreational activities, and entertainment, have trended higher than the retail industry average. With competition for consumer attention ever-increasing, it’s time to get creative and think a bit outside of your traditional lane.

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<h5> </h5><h5>Don’t forget omnichannel shopping is important, especially for Millennials and Gen Z</h5>The way consumers shop, especially younger consumers, in-store shopping is just one possible touchpoint in the customer journey. The more touch points you offer, the more opportunities you have to not only reach new customers but to also build affinity with existing ones.&nbsp;For example, think about someone finding your product on Instagram, clicking through to your website to learn more about your brand, and then ordering from their phone to pick up the item in-store. And while they’re in the store maybe they wander past another item that piques their interest. According to a <a href="https://www.forbes.com/sites/forbescommunicationscouncil/2018/08/01/brands-are-winning-thanks-to-an-omnichannel-approach-to-e-commerce/#3723331e6e47" rel="noopener noreferrer" target="_blank">report from IDC Retail Insights</a>, businesses who employ an omnichannel strategy report a 15 percent to 35 percent increase in average transaction size, plus a 30 percent higher lifetime value than those who shop using only one channel.&nbsp;The Afterpay <a href="https://afterpay-newsroom.yourcreative.com.au/wp-content/uploads/2022/11/Afterpay-Gen-Z-US-Report-2022.pdf" rel="noopener noreferrer" target="_blank">2022 Gen Z report</a> found that 40% of Gen Z consumers prefer online shopping vs in-store because of its 24/7 availability and the ease of being able to&nbsp; search and find exactly what they are looking for. Online doesn’t just mean a website. For example, it was reported late last year that around <a href="https://techcrunch.com/2022/07/12/google-exec-suggests-instagram-and-tiktok-are-eating-into-googles-core-products-search-and-maps/?tpcc=tcplustwitter" rel="noopener noreferrer" target="_blank">40% of Gen Z</a> uses TikTok as their search engine, turning to ordinary people and influencers alike for their reviews on products, services, restaurants, places to travel — you name it.&nbsp;Another benefit of the online shopping experience? Customer service. With that 24/7 availability, you are able to translate the in-person support that customers can receive in-store to constant support available at their fingertips digitally. Besides using it for shopping, the next-gen consumers are heavily leveraging their mobile devices as their primary customer support tool.

More than 84 million messages have been sent between sellers and buyers through conversational commerce platform <a href="https://squareup.com/us/en/messages" rel="noopener noreferrer" target="_blank">Square Messages</a>, with inquiries ranging from how to pick up an order to cost of services

If you’re thinking about how to upgrade your existing customer service tools, think about the hot new tool everyone is talking about — enter ChatGPT. This <a href="https://squareup.com/us/en/the-bottom-line/operating-your-business/what-is-chat-gpt" rel="noopener noreferrer" target="_blank">powerful tool can help</a> answer customer questions in your chatbot, provide personalized product recommendations, and monitor the quality of your customer service conversations. It’s important to note that human oversight is a must, as any AI-generated output may not be accurate or ethical.&nbsp;<h5>BNPL is key to a successful omni-channel strategy</h5>A key component of the omnichannel experience that is often overlooked by business owners but essential to a successful omnichannel customer experience — payments.&nbsp;The same <a href="https://afterpay-newsroom.yourcreative.com.au/wp-content/uploads/2022/11/Afterpay-Gen-Z-US-Report-2022.pdf" rel="noopener noreferrer" target="_blank">Gen Z report</a> found that almost 1 in 5 Gen Zs have abandoned a purchase in the last 12 months because their preferred payment method was not available. For many Gen Zs this preferred payment method is buy now pay later (‘BNPL’) with 44% of Gen Zs using BNPL in the last 12 months. The <a href="https://squareup.com/us/en/press/square-afterpay-state-of-retail-report" rel="noopener noreferrer" target="_blank">Afterpay and Square State of Retail report</a> found that in the past year, 2 in 3 Afterpay online transactions from millennials and Gen Zers were made on mobile devices, with the volume of Afterpay transactions up 196% since 2020.&nbsp;

In the past year, 2 in 3 Afterpay online transactions from millennials and Gen Zers were made on mobile devices, with the volume of Afterpay transactions up 196% since 2020

It’s worth noting that the growth of BNPL isn’t driven solely by younger generations either. As of March 2023, the number of Afterpay orders made by Gen Xers and boomers increased <a href="https://squareup.com/us/en/press/square-afterpay-state-of-retail-report" rel="noopener noreferrer" target="_blank">16% and 12%</a>, respectively.

As we talk about Afterpay as an essential payment option across generations it’s also important to think of it as a customer acquisition tool within the omnichannel shopping experience. Merchants offering Afterpay report that <a href="https://www.afterpay.com/en-US/for-retailers/access/omnichannel-retail/how-to-create-an-omnichannel-shopping-experience-with-afterpay" rel="noopener noreferrer" target="_blank">30%</a> or more of their Afterpay shoppers are new to their brand.&nbsp;

&nbsp;As of March 2023, the number of Afterpay orders made by Gen Xers and boomers increased 16% and 12%

As we talk about Afterpay as an essential payment option across generations it’s also important to think of it as a customer acquisition tool within the omnichannel shopping experience. Merchants offering Afterpay report that <a href="https://www.afterpay.com/en-US/for-retailers/access/omnichannel-retail/how-to-create-an-omnichannel-shopping-experience-with-afterpay" rel="noopener noreferrer" target="_blank">30%</a> or more of their Afterpay shoppers are new to their brand.&nbsp;Tip: Don’t forget to use the free assets in our <a href="https://www.afterpay.com/en-US/for-retailers/resources/marketing" rel="noopener noreferrer" target="_blank">Marketing Resources Center</a> to market to your customers across your channels that your business accepts payments with Afterpay. <a href="https://squareup.com/us/en/marketing" rel="noopener noreferrer" target="_blank">Square marketing</a> can also help you send personalized email and text message campaigns to drive traffic to your online and physical stores.<h5>Omnichannel is king</h5>As you and other business owners wade through the current economic uncertainty remember that one of the best ways to future-proof your business is to think omnichannel. Expanding the channels you market on, as well as diversifying your revenue streams through non-core offerings, allows you more ways to connect with both existing and potential customers.&nbsp;

Unlocking Success in the Ever-Evolving Retail Landscape: Insights from Afterpay and Square

Retail Index Report

Partywear, pets, and a festive “homecoming” for in-store shopping marked the 2021 holiday shopping season. More people shopped outside their homes and beyond their usual categories, using Afterpay in-person at their favorite retail stores.Each year, we dive into the&nbsp;data from Afterpay users and merchants to find the leading holiday shopping season trends, from where people shopped to what they bought. Here are the top six trends from 2021, plus advice for retailers as they prepare for the year ahead.&nbsp; 1. In-store shopping returned﻿2021 saw an in-store shopping growth of 384% year-over-year, with a 442% increase on Black Friday alone. Last year, consumers embraced ecommerce and BOPIS (buy online, pick up in store) to check off their holiday shopping lists. While online shopping remained strong, more consumers were open to visiting their local malls and shops to browse and buy in-person. This is good news for merchants with brick-and-mortar locations. As Omicron may dampen social activities for a few more weeks, expect a bustling spring shopping season.&nbsp; 2. Mobile-first shopping drove referralsThis season, we invited shoppers to “Afterpay it” with their holiday shopping lists–and they did. Consumers discovered new brands and products via Afterpay, driving a 41% increase in referral traffic to merchants. More than 90% of those referrals came from the Afterpay mobile app. Much of that was driven by young shoppers, with 11% more Gen Z consumers shopping our platform year-over-year between Black Friday and Cyber Monday. 3. Shoppers favored convenience and varietyDepartment stores, a retail format that had lost favor among younger shoppers in recent years, saw a resurgence this season. Shopping with department stores was up 256% year-over-year, in part due to the convenience of finding gifts for everyone in the family all at one place. Consumers also turned to gift cards to ease the holiday shopping burden, especially given the ongoing supply chain issues - spending on gift cards multiplied 50x year-over-year. 4. People got out in styleThe return of holiday office parties and social gatherings drove an uptick in spending on partywear. Shoppers sought to dazzle, with velvet and sequin clothing increasing 188% and 146% year-over-year, respectively. Glamorous outfits like these have the added benefit of helping people feel more confident and outgoing–traits that will help us all ease back into social events in 2022. Consumers also boosted their confidence by hitting the slopes, with a 10x increase in spending at ski and snow merchants.&nbsp; 5. Pets were pampered&nbsp;From leashes and collars to bespoke bowls, consumers upgraded their pet’s apparel and accessories this season. Quarterly sales in the pet category were 376% - a strong indicator that more consumers are using Afterpay for more than just their apparel and beauty spending. Expect this category to continue growing as people further integrate their furry companions into their lives this year. 6. Not to be forgotten: home makeoversHoliday outings aside, consumers still spent a lot of time at home. Spending in the home goods category grew 49% year-over-year. During the busy Black Friday and Cyber Monday period, leading items included air fryers, candles, and coffee makers - up 22% year-over-year. As cold weather and Omicron loom over the next few months, expect this category to continue to perform well.&nbsp; 6. Inclusivity is inGender-fluid and gender-inclusive clothing continued to grow as a category. Sales for products described as “unisex” grew 57% year-over-year as&nbsp;more brands expanded their gender-fluid and unisex product lines. Shoppers also gravitated toward diverse businesses for their holiday shopping, with more than a half a million customers supporting Black and female-owned businesses.&nbsp;

“With this newfound appetite to go back into stores, consumers showcased braver shopping decisions and emulated their fashion senses across all their lifestyle choices,” says Shakaila Forbes-Bell, Afterpay’s consumer shopping psychologist.

Looking ahead: Shopping in 2022“With this newfound appetite to go back into stores, consumers showcased braver shopping decisions and emulated their fashion senses across all their lifestyle choices,” says Shakaila Forbes-Bell, Afterpay’s consumer shopping psychologist. In 2022, “people will continue to build off their style into their homes or through their pets - cementing these categories from one-off trends to staple items. In this permanent hybrid world, we can expect even more experimental consumer behavior across the board."Growth of BNPL will continue in the US and globally as well. Last year, spending on BNPL in the US alone increased 230%, as consumers opt to spend responsibly without incurring interest. With more consumers looking to use Afterpay to discover and pay for products in all areas of their life, we expect merchants from a broader range of categories to join us in 2021. ﻿Want to speak with a member of our team about increasing traffic to your site or store front? Reach out to us by clicking <a href="https://retailers.afterpay.com/merchant-enquiry/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">here</a>.&nbsp;

That’s a Wrap: Afterpay’s Insights from the 2021 Holiday Shopping Season

By now, most retailers are well versed in the essentials of an omnichannel strategy.

Put simply, omnichannel entails meeting consumers where they shop and buy--whether on a traditional eCommerce site, via social media, in-person, or on other channels. A cohesive omnichannel strategy connects the proverbial dots between those channels, providing a seamless brand experience for shoppers.As more merchants adopt omnichannel to grow their business, it’s important to keep up with the latest advancements. It’s also critical to balance industry trends with what your customers actually want. Social commerce might be an increasingly popular way for Gen Zers to shop, but if you cater mostly to the Boomer generation, you may be more successful investing in more traditional omnichannel tactics like BOPIS (buy online, pick up in store), which allow your customers to shop in ways they’re familiar and comfortable with.One aspect of the omnichannel experience that not all retailers consider is payments: More shoppers are opting to ditch credit cards and adopt more flexible payment options that allow them to buy now, pay later (BNPL). <a href="https://www.retaildive.com/news/e-commerce-spending-could-reach-1-trillion-in-2022-adobe/596864/" rel="noopener noreferrer" target="_blank">Usage of BNPL services like Afterpay has grown 215% over the first two months of 2021</a> compared to the same period last year, found a report by Adobe. In addition, the report found that transactions made with BNPL are 18% larger than orders using other payment options, giving the retailers that offer BNPL a real edge.&nbsp;

Why? Beyond the clear consumer preference for BNPL, merchants who integrate Afterpay in their omnichannel strategies can better understand their customers, and thus build stronger connections via the other elements of their omnichannel approach.For one, Afterpay gives retail partners a more comprehensive look at their customers’ spending habits, both in-store and online. That customer’s purchases--no matter where they’re made--are all connected to their Afterpay account. On the consumer side, shoppers can see all their purchases on the Afterpay app, as well as track and manage upcoming payments, keeping brands top-of-mind.Afterpay retailers also get a visibility boost by being listed in the Shop Directory, which refers XXM customers per month. Recently-implemented features like the Favorites list allows shoppers to save items and brands they’re interested in to revisit when they’re ready to make a purchase. These features make Afterpay much more than just a way for customers to pay.&nbsp;Ready to make Afterpay part of your omnichannel strategy? Consider the following to give your customers the flexibility to buy now, pay later.

<h2>1. Understand the potential benefits</h2>Beyond the benefits listed above, merchants offering Afterpay report that 30% or more of their Afterpay shoppers are new to their brand. They also report a 22% increase in cart conversion, and average order value increases of up to 40%. There are operational savings, as well: Afterpay shoppers make less returns, which equals high monthly sales and less time and money spent on <a href="https://www.afterpay.com/en-US/for-retailers/access/operations/customer-service-examples" rel="noopener noreferrer" target="_blank">customer service</a> or restocking.&nbsp;<h2>2. Implement and announce</h2>Going “live” with Afterpay is easy, and our team can help merchants get set up in minutes. Merchants may already be set up to offer Afterpay via our <a href="https://www.afterpay.com/for-retailers/us-integrations" rel="noopener noreferrer" target="_blank">eCommerce and payments partners,</a> which include Wix, Squarespace, Shopify, Stripe, Adyen, and a growing list of others. Once Afterpay is in place, it’s time to spread the word. Many merchants report increased traffic and conversions when they incorporate Afterpay messaging in their marketing.<h2>3. Engage with our community</h2>Through events like <a href=" https://www.afterpay.com/en-US/for-retailers/access/news/afterpay-day-drives-35-growth-in-new-customers" rel="noopener noreferrer">Afterpay Day</a> (our bi-annual sale) and specialty campaigns like our <a href=" https://www.afterpay.com/en-US/for-retailers/access/marketing/more-than-just-payments-how-afterpay-can-be-a-marketing-lever-for-your-brand" rel="noopener noreferrer">Valentine’s Day TikTok collaboration</a>, merchants can reach even more customers. Tapping into our growing community--now 16 million strong in the US--is a powerful opportunity to put your omnichannel strategy to work and grow your business.

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Interested in learning more about how Afterpay can supercharge your omnichannel approach? Contact our team today by clicking <a href="https://retailers.afterpay.com/merchant-enquiry/" rel="noopener noreferrer" target="_blank">here</a>.

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By now, most retailers are well versed in the essentials of an omnichannel strategy. 

How to create an omnichannel shopping experience with Afterpay

If omnichannel retail was a growing trend before the pandemic, the impact of COVID-19 has firmly established it as an essential strategy for merchants.

The upswing in online shopping driven by the pandemic means retailers will not only have to implement or supplement omnichannel strategies, but ensure they’re differentiated. One way to do so is by empowering customers to shop smart and spend wisely.&nbsp;We’ve offered thoughts on how to integrate omnichannel solutions across each step of the shopping lifecycle below to not only making shopping easier, but to encourage smart spending decisions:

<h2>Step #1: Omnichannel product discovery</h2>A multi-channel sales approach is an integral part of any omnichannel strategy. Think you’re doing enough by having a robust eCommerce presence? Think again. As consumers continue to lower their spending in discretionary categories, retailers must reach them where they are – it’s no longer about depending on customers to come to your store or site. Industry experts predict that social commerce, or making purchases directly through social media platforms like Instagram and Snapchat, will grow in 2021 as customers spend more time on social media and less time in-person.In addition to “buy buttons” and shoppable posts and stories,<a href="https://go.forrester.com/blogs/category/retail/" rel="noopener noreferrer" target="_blank"> shoppable video</a> is the next omnichannel trend to watch for in 2021, predicts Forrester. With video the closest digital medium comparable to an in-person experience, it may be a viable option for retailers to invest in as part of their marketing mix.

<h2>Step #2: Omnichannel pickup</h2>Whereas pre-pandemic, in-store and delivery were the reigning options, customers now expect a range of flexible and affordable pickup choices. Merchants should be investing in an omnichannel strategy which prioritizes the online, in-store and hybrid shopping experience concurrently. Retailers should ensure their brick-and-mortar locations are set up to offer “BOPIS” (buy online, pick up in store), as sources project up to<a href="https://retailtouchpoints.com/resources/90-of-retailers-plan-to-implement-bopis-by-2021#:~:text=By%202021%2C%2090%25%20of%20retailers,Mobile%20POS%20devices%20(87%25)%3B" rel="noopener noreferrer" target="_blank"> 90% of retailers will offer this service by the end of the year</a>. BOPIS helps customers save on delivery fees (which they may be hyper-aware of as they’re likely spending more on delivery than ever before), while also helping merchants reduce their delivery costs and carbon footprint.Curbside pickup and other BOPIS options go part and parcel with the “contactless shopping experience,” as customers can collect their items safely without having to expose themselves to prolonged in-person contact. “Click and collect” strategies have exploded in popularity –&nbsp;sales are now expected to reach a whopping<a href="https://www.emarketer.com/content/majority-of-us-shoppers-will-turn-digital-holiday-shopping-needs-this-year?ecid=nl1001" rel="noopener noreferrer" target="_blank"> $58.52 billion</a> by the end of the year.

<h2>Step #3: Omnichannel customer service</h2>For retailers that prior to the pandemic, depended on brick-and-mortar locations for the majority of sales, <a href="https://www.afterpay.com/en-US/for-retailers/access/operations/customer-service-examples" rel="noopener noreferrer" target="_blank">customer service</a> agents were likely invaluable parts of the shopping experience. Luckily, advances in technology through artificial intelligence (AI) and machine learning (ML) mean that the quality of your customer service does not have to decrease when being brought online across channels. AI-powered bots can interact with customers throughout their shopping journeys, bringing a level of customer engagement and data insights collection that would not be possible through the in-person experience.Videoconferencing enables customers to share their challenges visually so that agents can help solve problems, and with ‘co-browsing,’ agents can even share screens to help solve online shopping issues. Offering omnichannel <a href="https://www.afterpay.com/en-US/for-retailers/access/customer-service/customer-centricity" rel="noopener noreferrer" target="_blank">customer service</a> options helps decrease the risk of abandoned carts and helps customers make important shopping decisions.

<h2>Step #4: Omnichannel payment options</h2>What could be more critical to empowering your customers to make smart spending decisions than offering flexible payment choices? With more consumers moving away from credit cards and shopping on debit, they’re increasingly choosing BNPL options like Afterpay to make purchases without having to worry about paying the total up-front or being hit with interest and debt afterwards. Offering BNPL can not only increase the AOV, cart size, and shopping frequency of your current customers, it’s also an attractive selling point to acquire new ones. Incorporating BNPL messaging in an omnichannel strategy, including promotions, lets your customers know you want to help them spend smart.According to Accenture, Gen Z is most likely to spend through BNPL options, an<a href="https://www.marketwatch.com/story/more-americans-are-opting-for-buy-now-pay-later-this-holiday-shopping-season-here-are-the-pitfalls-to-watch-out-for-11606859297#:~:text=The%20trend%20is%20most%20significant,%25%20since%20last%20year%2C%20respectively." rel="noopener noreferrer" target="_blank"> increase of 201% since 2019</a>. Millennials and shoppers in Gen X and above increased their BNPL spending by 86% and 63% since 2019, respectively.

Interested in learning more about how Afterpay can fit into your omnichannel strategy? Reach out to our team for more information by clicking <a href="https://retailers.afterpay.com/merchant-enquiry/" rel="noopener noreferrer" target="_blank">here</a>.

To integrate omnichannel solutions across each step of the shopping lifecycle.

How omnichannel solutions can help encourage smart customer spending habits

The weather is warmer, vaccines are continuing to roll out and restrictions are easing. As lockdowns and restrictions continue to wane, people are eager to get out of the house and back into a routine (one that involves a wardrobe beyond pajamas and sweatpants). For retailers, this means preparing for an uptick in both online and in-store shopping.

So, how can you best prepare and position your business to benefit from the upcoming shopping surge?&nbsp;&nbsp;

<h2>Leverage data to provide unique eCommerce experiences</h2>The <a href="https://nrf.com/media-center/press-releases/nrf-forecasts-retail-sales-exceed-433t-2021-vaccine-rollout-expands" rel="noopener noreferrer" target="_blank">National Retail Foundation</a> forecasts retail sales in 2021 to grow between 6.5% and 8.2%, with sales potentially reaching $4.4 trillion this year. The NRF predicts that $1.19 trillion worth of retail spending, or more than 25%, will come from online shopping. This should come as no surprise as the pandemic has turned even the most tech-averse consumers into online shopping pros. This year, 74% of new retail businesses registered had<a href="https://www.mytotalretail.com/article/4-retail-trends-to-watch-in-2021/" rel="noopener noreferrer" target="_blank"> no physical footprint at all</a>. With the shift to online, retailers have access to more customer data than ever before, giving them an opportunity to build stronger relationships and create<a href="https://chainstoreage.com/four-ways-retailers-can-thrive-after-pandemic" rel="noopener noreferrer" target="_blank"> additional revenue streams</a>. Some are also exploring new ways to engage with customers beyond their website or app, including launching subscription models, marketplaces, loyalty programs, digital games or digital licenses, exclusive access to events, and early access to products.

<h2>Continue to invest in store safety</h2>Though experts expect for the eCommerce trend to stick, customers will still flock back to stores. Retail and customer experience expert<a href="https://martinnewman.co.uk/" rel="noopener noreferrer" target="_blank"> Martin Newman</a> predicts that 9 out of 10 U.S. consumers will eventually return to brick-and-mortar retail this year. That being said, retailers must ensure in-store safety and hygiene remains their top priority. Leaders should evaluate their locations for sanitation, masks and social distancing even as the majority of the population gets vaccinated. A recent survey found that<a href="https://www.prnewswire.com/news-releases/nearly-all-shoppers-say-they-feel-safer-shopping-at-stores-that-provide-sanitizing-stations-iri-research-301238322.html#:~:text=Independent%20research%20via%20IRI%20reveals,retailer%20that%20provides%20such%20stations.&amp;text=Additionally%2C%20the%20study%20reported%20that,took%20two%20or%20more%20wipes." rel="noopener noreferrer" target="_blank"> 99% of shoppers</a> said they feel safer shopping at stores that provide hand sanitizing stations at their entrances, and a majority of respondents also said they plan to keep using wipes for their hands and shopping carts even after getting vaccinated.&nbsp;&nbsp;

<h2>Think critically about the role of your store</h2>According to Newman, come spring, some people will want to “over-index on what they’ve missed out on” during the pandemic and will be eager to go back to their favorite stores and discover new ones. Further, McKinsey &amp; Company found that half of consumers are<a href="https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/survey-us-consumer-sentiment-during-the-coronavirus-crisis" rel="noopener noreferrer" target="_blank"> pandemic-fatigued and intend to spend soon</a>, especially on apparel, beauty and electronics. This is a great time to reconsider the role of your store. Is it functional, or experiential? “Generalist” stores that provide shoppers with the ability to pick up many different types of items at once, such as Target, have fared well during the pandemic as they decreased their customers’ needs to leave the house for trips to multiple stores. But if your store focuses on more niche products, focus on the experiential. Have curated, focused products and spaces for community events or experiences. Remember, even post-pandemic, shoppers will need a real reason beyond convenience to visit stores.

<h2>Ensure omnichannel is at the forefront of your strategy</h2>The idea of the omnichannel shopping experience is becoming less of a buzzword and more of a standard. An omnichannel approach is all about empowerment: joining up experiences to give customers the means to shop when, where, and how they want. At the onset of the pandemic, many retailers implemented new technologies, including “BOPIS” (buy online, pick up in store), same-day delivery and contactless mobile checkout. Others offered “BNPL” (buy now, pay later) platforms like Afterpay both in-store and online, to help their customers spend smart, without the worry of debt, interest, or hidden fees. Even after the pandemic subsides, these omnichannel offerings remain critical. Experts suggest that retailers will need to invest in tools and technologies that give them the foundation to be flexible and agile to support the modern-day omnichannel shopping experience.

In 2021, there’s no longer a logical separation to be made between the in-store and online experience. As a customer walks into a brick-and-mortar location, there is an incredibly high chance that they were already engaged with the store or brand online, and vice versa. That’s the way we shop today, and it will undoubtedly influence the way we’ll shop tomorrow.

Interested in becoming an Afterpay partner and tapping into our 16 million US customers? Contact our <a href="https://retailers.afterpay.com/merchant-enquiry/" rel="noopener noreferrer" target="_blank">team</a> today to learn how to quickly and seamlessly integrate Afterpay and offer your customers a more flexible way to pay.&nbsp;

For retailers, this means preparing for an uptick in both online and in-store shopping.

The Consumers are Coming: Preparing for the Post-Pandemic Shopping Surge

It’s been a tough year for retail, but this holiday shopping season is expected to see near-normal spending levels as consumers seek to celebrate despite the events of 2020. Since shopping will be largely online this season, having a robust omnichannel strategy will be critical. Even brick-and-mortar only shops should consider how their marketing channels can be used to communicate around in-store policies and safety ⎼ in addition to seasonal promotions ⎼ to help customers feel more comfortable with the shopping experience.&nbsp;

Recent data show the power of such strategies: customers targeted through omnichannel shopping experiences make <a href="https://hbr.org/2017/01/a-study-of-46000-shoppers-shows-that-omnichannel-retailing-works" rel="noopener noreferrer" target="_blank">23% more repeat shopping trips and spend 10% more than single-channel shoppers.</a> This approach also increases loyalty: merchants with omnichannel strategies <a href="https://www.digitalcommerce360.com/2013/12/31/why-omnichannel-strategy-matters/" rel="noopener noreferrer" target="_blank">retain nearly 90% of their customers.</a>&nbsp;

Supercharge your holiday approach with our top 4 tips for a successful omnichannel strategy:

<h2>1. Treat brick-and-mortar as a channel</h2>Some experts call this the “bricks and clicks” approach, and it has only become more important in 2020. The key here is consistency. With social distancing and sanitization guidelines in place in many stores, a merchant’s physical locations have become communications channels in their own right. Think of all the signage inside and outside stores today--from floor stickers to sandwich boards. Expect more shoppers to carefully plan their in-store visits this year and spend less time browsing downtowns, malls, and the shops themselves. They’ll look online for information about in-store policies, from store capacity and hours to returns guidelines and safety measures. Ensure not only your website is up to date, but check online business profiles (like those on Maps or Google), and of course keep shoppers updated frequently via social media and newsletters.&nbsp;

<h2>2. Bring joy into the process</h2>Omnichannel marketing emphasizes discovery, a process that Gen Z in particular loves. Channels like Instagram, TikTok, and Facebook are excellent for introducing your products to targeted customers as they scroll through their feeds, and can bring a bit of the holiday joy and surprise back to this holiday season. Instead of positioning products to the viewer, suggest gifts for their friends and family (or, give them something to ask for!) Bring them into your funnel with a special holiday offer, and then leverage tailored emails and retargeting ads to round out the experience. With these second and third touch communications, emphasize holiday-related content like personalized gift lists, holiday shopping tips, or feel-good stories about giving back to encourage shoppers to spend more time with your brand.&nbsp;

<h2>3. Prepare for a “mobile” Black Friday</h2>This Black Friday will be unlike any other, with many major retailers moving to online-only or limited in-store operations. This will make omnichannel strategies even more important, as consumers will be bombarded by digital and social ads as well as emails. Not only will brick-and-mortar retailers be driving online sales, but they’ll be pushing mobile checkout options for in-store or curbside pickups, and even some in-store sales to reduce contact points. This means shoppable social media channels will become even more important to capture attention and sales in the moment--before your potential customer is served up a competitor’s ad.&nbsp;

<h2>4. Make the checkout experience seamless</h2>The holiday season is high-stress in a normal year, and will be even more so this year. Many retailers are still plagued by supply chain delays and out-of-stock or backordered products, meaning extended shipping times for shoppers. Beyond communicating clearly about these issues, ensure the checkout experience is seamless. Omnichannel shopping often means that customers can check out on different platforms--from your eCommerce site to social sites like Instagram. Ensuring that the checkout process is straightforward, consistent, and easy can put your customers at ease and encourage return shopping trips. Contactless payment options (such as Afterpay’s solution) should be offered on each platform, as well as in-store. It’s also important that shoppers are able to look up and track their orders easily to ensure they reached their recipients safely and on-time.&nbsp;

Whether your customers are shopping in-store, on your website, or on a social platform, Afterpay can help them check everything off their list, without worrying about the up-front cost. Reach out to our team <a href="https://get.afterpay.com/" rel="noopener noreferrer" target="_blank">here</a> to learn how we can help give your customers a fairer way to pay (and give) this holiday season.&nbsp;

Supercharge your holiday approach with our top 4 tips for a successful omnichannel strategy.

4 Ways You Can Implement a Successful Omnichannel Solution This Holiday Season

With Fall and back-to-school shopping behind us, retailers are steadily planning for the most important shopping season of the year: the winter holidays. Though every holiday shopping season is crucial, this one will undoubtedly be one of a kind – shaped by the changes to consumer behavior driven by COVID-19.&nbsp;As the pandemic has accelerated consumers' adoption of eCommerce and omnichannel shopping behavior, merchants everywhere should be adapting.

We’ve chatted with experts and researched best practices to gather the top tips for omnichannel marketing for the 2020 holiday season:

<h2>1. Plan ahead for the move to online</h2>According to retail and customer experience expert <a href="https://martinnewman.co.uk/" rel="noopener noreferrer" target="_blank">Martin Newman</a>, in recent years, in-store sales have accounted for as much as 80% of all holiday sales in a given season. One change for the 2020 experience that there is broad consensus on across the retail community: holiday shopping will move online. As per a recent survey of 10,000 shoppers across the US, despite the impact of COVID-19, shoppers do not plan to significantly change their holiday spend compared to 2019. However, <a href="https://www.prnewswire.com/news-releases/retailers-get-ready-survey-shows-covid-19-impact-hasnt-disrupted-consumer-holiday-shopping-plans-301089520.html" rel="noopener noreferrer" target="_blank">66% of shoppers</a> said they plan to increase their online purchases during the 2020 holiday season.&nbsp;

<h2>2. Personalize your customers experience through data-insights&nbsp;</h2>Though COVID-19 has been the catalyst behind shoppers becoming more comfortable buying online, this trend is actually not new — over the past few holiday seasons, more and more consumers have opted to do their gifting online. For retail marketers, this means crafting a data-driven marketing strategy aimed at the new hybrid shopping experience.&nbsp;&nbsp;As shoppers continue to shift their preference to online shopping from multiple devices, using data to more aptly know your consumer and their preferred devices and channels means you can reach customers more effectively, promoting holiday events, items and experiences that are most relevant to them on the channels they frequent most. Leverage data to learn where your traffic is coming from and what competitors your customers are visiting. Personalize your promotions by tailoring to shoppers’ habits and preferences, crafting personalized messages that speak to them.&nbsp;

<h2>3. &nbsp;Make the online experience fun and festive</h2>Part of the “magic” of in-store holiday shopping are the intricate in-store displays and experiential activations, and the social aspect of the hustle and bustle of the shopping season. This year will undoubtedly be different, especially for the younger generation of shoppers, who are the least likely to visit stores and use changing rooms in the COVID-19 environment. For retail marketers, that means a critical need to infuse your brand or store’s website with holiday magic.&nbsp;Just because your website doesn’t have a giant snow globe or warm cider doesn’t mean it can’t be (almost) as festive as shopping in-store. Bring some of the magic of gifting to your site by thinking through the shopping experience. You likely already have product categories on your site, but do you have gift categories? Are there options for adventurous types as well as those that like snuggling up on a couch all day? Think through personality types and traits, or develop themes that align with your brand to make the browsing experience a bit more fun and inspiring. Incorporate those elements into your overall digital marketing approach, including sending personalized emails or targeted social ads to your customers. Merchants can go above and beyond by offering personal shopping support, either via video chat with an in-store employee, or via chat or phone call.

<h2>4. Shoppers will seek a fairer way to pay</h2>According to research, <a href="https://couponfollow.com/research/commerce-during-covid" rel="noopener noreferrer" target="_blank">another trend</a> that retail marketers should look out for when planning for the 2020 holiday shopping season is the increased shopper preferences towards “buy now, pay later” services. This comes as no surprise as millions of Americans are looking for ways to make their money go further. <a href="https://couponfollow.com/research/commerce-during-covid" rel="noopener noreferrer" target="_blank">Two-thirds of Gen Z consumers</a> and over half of millennials said that they used BNPL options for the first time due to COVID-19. As shoppers continue trying to save money and budget, this trend suggests that many are looking to more responsible payment options to help manage cash flow.With Afterpay, consumers can check everything off their shopping list without worrying about covering the full costs up front--or paying interest on their purchases. Having a flexible way to shop from start to checkout will draw shoppers to merchants that offer Afterpay, both in-store and online. It’s for that reason, Newman notes, that many Afterpay users may start their holiday gift hunt directly from our Shop Directory to ensure they’re buying from retailers that offer a fairer way to pay.

For more on how to prepare and come out ahead this season, check out our other stories on the upcoming holiday shopping season here on our retailer blog.&nbsp;

Learn more about the best practices to gather the top tips for omnichannel marketing for the holiday season.

4 Tips for Omnichannel Marketing Ahead of the Holidays

Shoppers may not know what “omnichannel” means, but they certainly expect it from the brands they love.&nbsp;

An omnichannel experience is a “multi-channel approach to marketing, selling, and service customers in a way that creates a cohesive customer experience,” says <a href="https://blog.hubspot.com/service/omni-channel-experience" rel="noopener noreferrer" target="_blank">Hubspot</a>.

Put simply, omnichannel strategies ensure customers have an engaging and seamless shopping experience no matter how they interact with your brand. This includes shopping on eCommerce sites on desktop and mobile, by telephone, or in-store. Omnichannel goes deeper than the multi-channel strategy retailers and marketers have come to know, which emphasizes presence across platforms but doesn’t involve significant integration.&nbsp;

To customers, an omnichannel experience might mean they can find and shop a brand on social media, complete the experience on the merchant’s desktop site, and receive personalized email communications with tailored promotions. Shoppers also often use different channels at the same time--<a href="https://www.outerboxdesign.com/web-design-articles/mobile-ecommerce-statistics" rel="noopener noreferrer" target="_blank">80% of customers use their mobile phones while shopping in-store,</a> making it critical that experiences are cohesive. And more customers, especially younger shoppers, are purchasing from social media with <a href="https://www.bigcommerce.com/blog/omni-channel-retail/#where-consumers-shop-online" rel="noopener noreferrer" target="_blank">more than 70% of Gen Zers and Millennials making a purchase on Instagram.</a>

Think of Apple: Customers can customize and purchase a product on desktop, receive a mobile wallet card for quick in-store pickup, sign for the item via mobile POS, automatically receive an email receipt, and then be sent a customized product set-up email when the product is first turned on. They can then connect to a customer service rep for set-up help via desktop, mobile app, or text--and transition that conversation across platforms.

Numerical Highlight List

With more retailers implementing creative omnichannel strategies, customers will expect a cohesive, engaging, and personalized experience no matter how they interact with your brand.&nbsp;

To integrate Afterpay into your omnichannel strategy, reach out to our team by clicking <a href="https://retailers.afterpay.com/merchant-enquiry/" rel="noopener noreferrer" target="_blank">here</a>.&nbsp;

Shoppers may not know what “omnichannel” means, but they certainly expect it from the brands they love. 

3 Omnichannel Strategies to Attract New Customers in 2021

In the course of just one year, the relationship between customers and the brands they love has been altered in profound ways. As customers faced changes to how they shop brought on by pandemic-induced regulations, the ability to get the items they want became more complex than a quick trip to the store. As an overwhelming number of consumers, including many first-timers, turned to online shopping, omnichannel customer-centricity became an imperative for retailers. According to<a href="https://martinnewman.co.uk/" rel="noopener noreferrer" target="_blank"> Martin Newman</a>, expert on retail and the consumer experience, the omnichannel trend will only accelerate in 2021.

Offering a uniform, efficient, and pleasing experience across all channels is no longer a luxury that only big box retailers can provide to their customers — it has become a must for all. Thankfully, with today’s technology and some creative thinking, the implementation of omnichannel strategies is becoming easier for merchants of all sizes.To provide a seamless customer experience, increased consumer retention and satisfaction in 2021, consider the following elements of successful omnichannel approaches:

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To learn more about how Afterpay fits into an effective omnichannel strategy, reach out to our team by clicking <a href="https://retailers.afterpay.com/merchant-enquiry/" rel="noopener noreferrer" target="_blank">here</a>.

To provide a seamless customer experience, increased consumer retention and satisfaction in 2021, consider the following elements of successful omnichannel approaches.