SHAH ALAM - When it comes to retail preferences, Malaysian consumers have earned a reputation as some of the most discerning shoppers with heightened expectations and a desire for personalised experiences that go beyond traditional transactional encounters.
This has been revealed by The Adyen Malaysia Retails Report 2023.
In the age of convenience, payment preferences can make or break a sale.
According to the report, about 55 per cent of consumers would abandon the purchase if their preferred payment method isn’t available.
In an interview with Malaysia Adyen country manager Soon Yean Lee, he said that as a retailer, you do not want to risk frustrating shoppers with increased friction in their shopping journey, like not allowing them to pay however they wish.
"Offering payment methods that matter to consumers ensures a seamless and satisfying shopping experience, which is crucial for meeting customer expectations and fostering loyalty,” he said.
According to the report, traditional payment methods still hold sway in physical stores, with 66 per cent using debit/credit cards and 79 per cent relying on cash.
Meanwhile 32 per cent are more inclined to pay via digital wallets while in store.
Malaysia also gravitates towards debit/credit cards (62 per cent) and digital wallets (47 per cent) when shopping online – but with a slight difference: online banking comes out on top when it comes to e-commerce transactions.
To cater to these payment preferences, 53 per cent of retailers in Malaysia accept all major card payment methods while 55 per cent welcome digital wallets as a viable payment option.
UNIFIED COMMERCE
As customers want a personalised shopping journey, insights on the customers are the crux for retailers looking to enhance personalisation strategies.
"Every transaction is an opportunity for retailers to gain insights on customers’ shopping preferences and behaviour.
"When such information is collected and consolidated across different channels like online, offline or in-app, retailers gain a holistic overview of their customers’ entire shopping journey with their brand.
"This is what we term ‘unified commerce’. For retailers, it’s no longer about activating as many channels as they think they should; instead it’s putting the consumer in the centre of the transaction and considering their needs above all,” said Soon.
He continues to explain that with unified commerce, retailers can use actionable insights to craft tailored loyalty programmes, promotions and dynamic pricing.
Are Malaysian retailers aware of unified commerce? Yes. In fact, 31 per cent of retailers have already invested in this approach and an additional 40 per cent are actively considering making such an investment.
The report said that retailers who adopted unified commerce in 2022 witnessed a 20 per centage point increase in revenue compared to those who did not.
"This is significantly driven by the need for personalisation. With a unified commerce payment platform, retailers can nurture customer loyalty through a customised customer journey,” he said.
HIGH EXPECTATIONS FROM RETAILERS
One thing that has become a norm in the e-commerce world would be the shopping campaigns held throughout the calendar year.
But with TikTok’s explosive growth and its creative buying and selling experience, do seasonal promotions take a back seat?
"Such shopping campaigns remain relevant, our research revealed that Malaysians actively search for the best deals, with 40 per cent waiting for key calendar moments to make purchases.
"However, this normalisation has also altered the dynamics of consumer behaviour, leading them to expect more from retailers. For instance, our research revealed that Malaysians aren’t just motivated by price.
"Up to 79 per cent of shoppers want more personalised discounting from retailers they regularly shop with. At the same time, they want to be able to shop whenever and wherever they want – effectively making platforms like TikTok Shop an additional avenue for customer engagement,” he said.
To stay ahead of competition and foster stronger customer relationships, it’s essential for retailers to provide a personalised, hassle-free and consistent shopping experience.