With the e-commerce trend being on an upward trajectory, this industry’s revenue is predicted to soar from $940.09 billion in 2022 to $1.449.52 trillion in 2027 in the U.S.only.
As e-commerce becomes the preferred shopping destination for consumers, it begs the question: what impact does CX have on e-commerce businesses, and what strategies can be employed to improve it?
Talking numbers: The impact of CX on e-commerce businesses
- Brands that prioritize customer experience (CX) report profits that are 60% higher than those that don’t. (CX Index)
- 49% of customers who were once loyal to a brand have stopped using it in the past year because of a negative customer experience. (Emplifi)
- Customers who have had a positive experience spend 140% more than those who had a negative one. (Harvard Business Review)
Now that we’ve covered the reasons why CX is important for e-commerce business, here are some strategies that retail customer success leaders can use to enhance the customer experience in the age of e-commerce:
According to a study by Forrester, 77% of consumers have preferred, suggested, or paid extra for a brand that offers a customized service or experience.
However, many companies frequently use the term “personalization” without clearly understanding its true meaning and how to implement it effectively.
In reality, personalized interactions occur at various stages of the customer journey, including before, during, and after a purchase.
As customers progress through the customer lifecycle, the depth of personalization should also evolve. Initially, businesses may start with basic segmentation, grouping customers based on certain characteristics or behaviors.
But as the relationship deepens, individualization should increase, offering more tailored and unique experiences based on each customer’s preferences, past interactions, and purchase history
Provide excellent customer service
No matter how good the product or service is, if the customer service is poor, it will leave a negative impression.
- In fact, 76% of consumers would stop doing business with a company after just one bad customer experience.
- 72% of customers will share a positive experience with 6 or more people.
- 13% of customers will share a negative experience with 15 or more people.
To ensure excellent customer service, invest in two things: technology and people.
Investing in technology: WFM solutions and AI
|Why invest in a WFM solution:||Why invest in AI:|
Real-rime monitoring and adjustments
Improved customer service
Improved customer satisfaction
Increased agent productivity
Improved workforce planning
|AI-powered chatbots can reduce customer service costs by up to 30%. (Gartner)|
AI-powered fraud detection tools can reduce fraud losses by up to 90%. (IBM)
AI-powered inventory optimization tools can reduce inventory costs by up to 20%. ( McKinsey)
AI-powered contact centers can improve customer satisfaction by up to 20% (Forrester)
Investing in people: WFM experts and agent training
|Why invest in WFM experts:||Why invest in agent training:|
Best Practices Implementation
Proper set-up for data Accuracy
Speed and efficiency save time and money
Setup to match the organization’s specific needs
Provide in-depth training for staff
Proper system Integration
|Improved Customer Satisfaction|
Reduced Error Rates
Enhanced Communication Skills
Better Problem-Solving Capabilities
Increased Employee Engagement
Lower Turnover Rates
Standardization of Service
Adaptation to New Technologies or Procedures
Remember that for building true customer loyalty and relationships, human communication is a must.
- 82% of customers say that they prefer to interact with a human customer service representative when they have a problem. (Source: Salesforce)
Make it easy to shop
How to make it easy to shop:
It might sound as if it goes without saying, yet too many businesses do not provide basic capabilities like easy website navigation, relevant search results, or clear product information. Almost 80% of online customers abandon their purchases because of these reasons, jumping to competitors who better meet their needs.
- Have clear and easy-to-use website navigation.
- Consider implementing intelligent search that uses artificial intelligence to understand the user’s intent and provide more relevant results.
- Use high-quality photos and videos of your products. This will help customers get a better idea of what they are buying.
- Provide clear and accurate product information. Customers should know exactly what they are buying before they make a purchase.
- Use augmented reality to help customers visualize products – such as sunglasses try-on tools or what Ikea did with their app that allows people to place furniture in their homes virtually.
- Offer a variety of product filters and search options.
- Allow customers to save products to their wishlists.
- Offer a “live chat” feature so customers can get help from a representative if they have any questions.
- Offer a variety of payment options. Customers should be able to pay for their purchases in a way that is convenient for them.
- Have a secure checkout process. Customers should feel confident that their personal and financial information is safe.
- Offer free shipping or shipping discounts. This can make it more affordable for customers to shop online.
- Have a clear and concise return policy. Customers should know what their options are if they are not satisfied with their purchase.
- Make sure your website is mobile-friendly.
Listen to customer feedback
Gather valuable insights through surveys, emails, and social media to shape your e-commerce business.
For instance, use interactive feedback forms at checkout, inviting customers to rate their experience and share suggestions. Act on the feedback promptly to demonstrate dedication to customer satisfaction.
Example: If customers complain about long delivery times for electronic gadgets, analyze the data, collaborate with logistics partners, and offer real-time order tracking. Transparently communicate delays and provide solutions like expedited shipping or discount vouchers.
Create a customer service feedback loop to measure satisfaction after interactions. Invest in representative training for handling various queries empathetically.
Use sentiment analysis tools to prioritize and address negative feedback swiftly, preventing minor concerns from escalating.
6 simple yet powerful strategies to improve customer retention
Can you remember the last time you re-engaged with your customers and tried to win them back?
These strategies will do exactly that and more.