According to data released from digital services and solutions provider Avionos, 73% of online shoppers are likely to avoid brands and retailers after a single negative experience. On the flip side, 97% are likely to make a repeat purchase after a positive experience. It’s clear that experience is a core driver of customer loyalty today. Furthermore, brands and retailers must develop the commerce and digital marketing capabilities to keep up with evolving consumer expectations. Otherwise retailers risk losing market share.
Understanding consumer expectations
To gain a deeper understanding of consumer expectations, Avionos surveyed 1,500 US consumers who have shopped online within the past year. The “Shoppers Demand Superior eCommerce Experiences: Consumer Expectations in 2019” report found that seamless, experience-driven commerce drives consumer purchases today. Seventy-eight percent of online shoppers are more likely to make a purchase with a retailer that better personalises their experiences.
“It’s about relevant experiences and the consumer decides what’s relevant – not brands,” said Scott Webb, CEO of Avionos. “The cost of being generic is that brands lose that loyalty forever. Expectations have risen to the point where consumers have a right to demand relevant, first-time experiences with brands. If brands don’t deliver on that, consumers have enough options. Consumers will take their loyalty and money elsewhere. And there is no returning from that.”
Key findings from the report include:
- Seventy percent of online shoppers expect online brands and retailers to personalise their experiences. Personalisation is no longer a nice-to-have. The tactic is a top customer expectation you must meet. The stakes couldn’t be higher. When all else is equal between two brands or retailers,
- Seamless online-to-offline experiences dominate. Seventy-one percent of online shoppers believe a strong presence both in store and online equals success for brands and retailers.
- Omnichannel strategies reap major rewards. Nine in 10 online shoppers (87%) are now likely to shop in store with brands and retailers that previously operated only online (i.e., Bonobos, Warby Parker). Once those shoppers arrive in a store, 82% are likely to buy more than planned.
- eCommerce leaders stand out. When online shoppers intend to purchase a product, 35% start their search on Amazon, and 19% begin with Google.
- Brands and retailers need to stay two steps ahead. More than two-thirds of online shoppers (69%) believe brands and retailers need to know their device preferences for shopping. This number rises to 83% of Gen Z online shoppers, and 84% of millennials.
According to Dan Neiweem, co-founder and principal at Avionos,“Today’s commerce experience is multi-dimensional. It requires retailers to be thinking about how they can inspire innovation beyond just the next new tech trend.”
“They need to be thinking about how they can leverage data and derive insights that enable them to build relationships with their customers. They will need to create a seamless purchasing journey across all shoppable touch points, both in physical and digital spaces. Understanding what consumers want, retailers can start asking why, and form their strategies that build customer loyalty.”
Enterprise Times: What this means for business?
The retail landscape has evolved drastically as eCommerce players like Amazon have come on the scene. However, to be competitive, brands and retailers need to differentiate their offerings based on what their unique customers demand. They can learn from Amazon – what’s important is that they don’t try to be Amazon.
Furthermore, it’s not enough for brands to simply lower prices or provide high-quality products in order to get shoppers’ attention anymore. Experience is the differentiator. IKEA just released a mobile app that lets you preview furniture with AR. Urban Outfitters recently announced a clothing rental service. And H&M is in the process of expanding its U.S. loyalty program. Unique experiences drive purchases today.
Last year, Avionos ‘Enabling Experience-Driven Commerce Anytime, Anywhere’ report emphasised the need to make every branded touchpoint more memorable and shoppable. This year’s survey of more than 1,500 online shoppers echoes a similar call to action — brands must innovate to create individualised commerce experiences.