2 failed purchase attempts will drive customers away

As holiday shoppers navigate the busiest season of the year, their expectations are clear: they want value, convenience and flawless experiences. According to a global survey conducted by Applause involving more than 7,200 consumers, these trends are reshaping how brands engage with their customers.

If retailers fall short — particularly during the critical checkout process — they risk not only losing a sale but also long-term customer loyalty.

Spending more, but staying strategic

Despite inflationary pressures, consumers are set to increase holiday spending. In the US, the average shopper plans to spend US$902 this season, while Australians are forecasted to contribute to a record AUS$70 billion in retail sales. However, shoppers are exercising caution, with 76 percent focusing on sales and discounts to maximize their budgets.

Even with meticulous planning, nearly half of all shoppers report overspending, illustrating the tension between financial discipline and holiday indulgence. This dynamic presents an opportunity for retailers to stand out by offering competitive deals and frictionless shopping experiences.

The checkout experience: A make-or-break moment

The checkout stage remains the most critical part of the shopping journey. According to Applause’s findings, 63 percent of shoppers will abandon their carts after two failed purchase attempts and 18 percent will only try once more before giving up entirely.

The reasons for cart abandonment are often preventable:

Payment failures: Errors such as declined cards or unresponsive digital wallets disrupt the shopping flow.

Complicated processes: Lengthy or cumbersome forms can frustrate customers eager to complete their purchases.

The lesson for retailers is straightforward: investing in a seamless and reliable checkout process is not optional—it’s essential to retain customers.

Payment preferences continue to evolve

With 52 percent of shoppers adopting digital wallets or cryptocurrencies in the past year, payment diversity is no longer a luxury—it’s an expectation. However, only 58 percent of merchants currently support digital wallets, leaving significant room for improvement.

Retailers that integrate more payment options are well-positioned to attract younger, tech-savvy consumers who are driving demand for these alternatives.

Mobile and AI lead the way

The shift to mobile shopping is undeniable. This year, 72 percent of shoppers preferred smartphones or tablets over desktops, up from 68 percent in 2023 and just 43 percent in 2020. Retailers that prioritize mobile optimization will be better equipped to meet customers where they are.

Artificial intelligence (AI) s also gaining traction. A reported 37 percent of shoppers are utilizing AI tools during the 2024 holiday season, relying on features such as gift recommendations, deal finders and virtual shopping assistants. AI-driven personalization is no longer a novelty; it’s an expectation that enhances the overall shopping experience.

The omnichannel experience: Opportunities and challenges

Social media continues to influence consumer behavior, with 76 percent of shoppers admitting it shapes their purchasing decisions. Platforms like Instagram, TikTok and Pinterest are not only driving awareness but also facilitating purchases directly through targeted campaigns.

However, omnichannel challenges persist. Unready curbside pickup orders and disorganized BOPIS (buy online, pick up in-store) processes can tarnish the shopping experience, frustrating customers and jeopardizing their loyalty. Retailers must ensure these touchpoints are as seamless as their online counterparts.

What these developments mean for CX

The trends revealed this holiday season extend beyond seasonal shopping and provide critical insights into the evolving expectations of consumers. For companies, the emphasis on seamless, value-driven experiences is a call to action for reimagining customer experience (CX) strategies.

1. Flawless digital platforms are non-negotiable

Consumers are increasingly intolerant of technical glitches, especially at checkout. This trend is not new. This means companies must invest in rigorous testing and optimization of their ecommerce platforms. A well-functioning site that supports multiple payment options and handles high traffic smoothly can be the difference between retaining a customer and losing them to a competitor.

2. Omnichannel integration is essential

Shoppers want flexibility and consistency across all channels. Whether browsing online, making a purchase in-store or utilizing hybrid options like curbside pickup, the experience must feel seamless and intuitive.

Companies that succeed in aligning their digital and physical channels will not only meet expectations but also foster trust and loyalty.

3. Mobile-first strategies are key to engagement

With the continued dominance of mobile shopping, businesses need to prioritize mobile optimization and responsiveness in the user experience (UX). A laggy or poorly designed mobile site is enough to push customers away, especially during high-stakes seasons such as retail's golden quarter.

4. AI-powered personalization drives satisfaction

AI is becoming a critical tool in tailoring customer experiences. From personalized recommendations to AI-driven virtual assistants and chatbots, leveraging these technologies can enhance engagement and ensure that customers feel valued.

Companies that underutilize AI risk being perceived as out of touch.

5. The customer journey is more social than ever

Social media is no longer just an awareness tool—it’s a purchase driver. Businesses must craft targeted campaigns that resonate with their audience while ensuring a smooth transition from discovery to purchase.

This includes using data-driven insights to refine social media strategies and integrating shopping features directly within these platforms.

6. CX is an ongoing investment, not a one-time project

As consumer expectations evolve, so must the efforts to meet them.

Companies need to adopt a proactive approach to CX by continually testing, analyzing, and improving their customer touchpoints. This may involve utilizing tools like A/B testing, customer feedback loops, and predictive analytics to anticipate

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