The 2020 U.S. Consumer Behavior Report explores how US shoppers are buying, how they’re paying and what they think our payment preferences mean for the future. We explore consumer sentiment about shopping and social media, biometrics and security, mobile purchasing, and fears around data hacking and fraud.
Whatever your size, whatever and however you sell, insights into consumer behavior help you to acquire new customers, improve retention and build loyalty. Let’s peek inside the report …
- Gen Z embraces the power of social media. The combination of mobile and social is proving to be a perfect setting for commerce – especially for Gen Z. Easier payment integrations like digital wallets are making purchases on social media platforms easier and more convenient than ever. Among Gen Z respondents who made purchases via social media, more than a third (34 percent) do so every day.
- For in-store payments, mobile wallets are the wave of the future. US consumers have lagged in mobile payment adoption relative to those in Europe and Asia, but that’s changing. Fifty-six percent of our respondents believe smartphones will replace cards as their primary payment method in five years. The percentage of believers is unsurprisingly the highest among Gen Z, at 75 percent.
- Pay to get next-day delivery or wait and get it delivered for free? Consumers say faster isn’t always better. Seventy-three percent of US consumers would rather wait than pay an extra delivery fee. But more important than speed, is offering a specific timeslot – 88 percent of US consumers said a one-hour delivery timeslot would be either very or somewhat convenient.
- Consumers are warming to biometrics for payments. US consumers routinely use biometrics like fingerprint scans and facial recognition to unlock smartphones. When asked about making all their payments via biometrics, 46 percent of US consumers said it would be very or somewhat appealing. Gen Z-ers are the biggest fans (62 percent), with baby boomers the least (31 percent).
We conclude with key takeaways to help retailers translate consumer insights into action:
- Be prepared for the rise in social commerce. Brands will want to broaden and solidify their social strategy to use social media as a direct sales channel.
- Make payments safe, easy and accessible. Retailers need to offer consumers a variety of payment methods that their customers know and trust.
- Consumers are understandably concerned about their personal data. Retailers should prioritize comprehensive data security plans and transparently communicate those efforts to customers.
- Cash isn’t dead – yet the digital future is now. Retailers need to ensure they are prepared for the digital payments consumers expect, but shouldn’t stop accepting cash just yet.
Read the full report