We exist in a world of entitlement; A world where marketers are tasked with putting products, advertisements or promotions in the right place at the right time. Consumers don’t just expect a level of personalization and relevancy in offers provided, they also carry the expectation of the customer experience to extend well beyond the purchase – especially now, in the thick of the holiday shopping season. A recent survey from Voxware highlights exactly how impactful this can be for online retailers.
Today’s digital age has introduced a wealth of technology and innovation which is impacting how we live. An area seeing a major shift is e-commerce and online retail. Digital marketing is the new black, and puts customers a click away from the next sale item. With the explosive expansion in online purchases, consumer expectations continue to grow; let’s dig into some of Voxware’s results.
In specific, the survey explored holiday shopping plans, delivery expectations (for online or phone orders) and how incorrect or late deliveries would impact future shopping behavior. Compared to 2014, more than 80 percent of respondents noted higher expectations, with just shy of 80 percent stating higher expectations for accurate and timely delivery during the holiday season more so than the rest of the year. Another interesting statistic to come from the study is that one quarter of those making online purchases expect delivery within two days (with “standard shipping”), as opposed to only 8 percent in 2014.
Keith Phillips, President and CEO of Voxware explained, “Call it the ‘Amazon Prime Effect’ if you like, but understand that new standards have
been set and retailers need to meet or exceed them or risk being passed over by consumers.”
When these expectations are not met, issues arise – most notably loss of business. Some 35 percent (16.5 percent in 2014) of respondents will abandon shopping with a retailer after receiving one incorrect item; three incorrect items or less will result in a loss of over 90 percent (68.4 percent in 2014) of those surveyed business. In regard to future purchases, 45 percent noted they will be less likely or much less likely to make any future purchases with a company after one late delivery.
In an instance of an incorrect item being delivered, 27 percent of respondents expect compensation in the form of a coupon, credit or discount, for instance. Only 9 percent of those that receive goods late expect the same.
A common way to vent frustrations with a company is social media, as utilizing Facebook, Twitter or any of their socializing sibling platforms provide a voice. According to Voxware, 29 percent of people are somewhat likely to publicly share their negative experience, but 46 percent stated they were likely or very likely to publicly share their experiences. Social media is a powerful tool that businesses must make note, especially in today’s omnichannel environment.
The fact of the matter is this: people want what they want when they want it. Amazon Prime serves are a shining example of exceptional service, which then forces other online retailers to meet the challenge of accept the consequences. From the small retailer up to the Walmarts, Amazons and Targets of the world, the bar is set. One bad experience is enough to turn a customer away. Remember, it’s much more than simply selling a product; the customer journey matters.
Any experiences you’d like to share? Inquiring marketing minds want to know…