Online businesses in the UK aim to improve customer experience and increase customer retentionas their top priorities for 2011 while nearly half of online shoppers see the provided delivery
service as essential when choosing a retailer, recent research from online retail association IMRGand Capgemini shows.Customer retention and experience were identified as the top priorities of online retailers forthis year in IMRG’s recent report.
In a poll of 300 association members conducted by IMRG and eDigitalResearch, 78% of e-businessessaid that customer retention / management was a key area they are looking to invest in this year,with customer journey / experience rated highly by 77% of respondents.
Customer care is a major target area for investment among 71% of the retailers, with socialmedia (71%) also featuring highly. Social media networks have become an important channel forconsumer communication, as so many retailers now have Twitter feeds and Facebook pages withhundreds of thousands of followers, IMRG stressed.
M-Commerce (50%), cross-border expansion (46%) and multi-channel blending / separating (43%)were considered less important in terms of investment than ensuring a high quality experience forconsumers on their sites.
The study stressed that the high profile Wikileaks-related cyber attacks have not impacted veryheavily on confidence in the marketplace as only 22% of the businesses surveyed said that they weremore concerned about security following the denial of service attacks just before Christmas.
James Roper, Chief Executive of IMRG, said: “It is clear from the results that retailers areaware of the high levels of competition they face in the online market. Consumers expect theirjourney through a website, from the landing page right through to the checkout, to be simple,convenient and intuitive. The customer experience can be a key differentiator when selecting a siteto shop on, and it doesn’t stop there; post-sales customer care and the delivery fulfilment processcan convert an otherwise positive experience to a very negative one in the customer’s mind.”
This research focusing on the priorities of online businesses also underscores the requirementsof online shoppers for a high quality delivery service, as shown in the new IMRG Consumer DeliverySurvey 2011. While retailers try to retain customers, 46.5% of online shoppers are influenced inthe choice of a retailer by the delivery service provided, the survey revealed.
The Internet Delivery is Safe (IDIS) icon has a significant influence on consumers’ positiveperception of a retailer’s delivery offer, according to nearly 25% of respondents. This equals arise of 125% on last year’s report.
The biggest worry for online shoppers remains the additional cost of home delivery and the riskof failed delivery due to the recipient not being available to accept the order; although this hasimproved on last year. However, the percentage of homes likely to be unoccupied during normaldelivery hours remains constant at 55%.
Apart from lower delivery costs, customers desire more convenient delivery services encouragingthem to shop online. These include specific day and 2-hour timeslot deliveries as well as improveddelivery information at the time of dispatch and in advance of delivery. Moreover, they wouldappreciate improved returns services with access to more drop off and collection options and betterinformation about the ‘return’ in transit and confirmation that the goods have been safelyreceived.
Andrew Starkey, Delivery Director at IMRG, said: “Delivery is absolutely fundamental to consumersatisfaction, as it is the final step and can convert an otherwise positive shopping experienceinto a negative one if the retailer’s delivery offer is not clear or provides too few options tothe consumer.”
Despite the demands and concerns of online shoppers, online sales substantially increased inJanuary in the UK with £5.1 billion spent over the internet last month which equals a year-on-yearincrease of 21%, according to the monthly IRMG Capgemini e-Retail Sales Index.
