Online shopping

40% of consumers switch online shopping brands as loyalty declines

Online retailers need to improve delivery and returns experience to encourage customer loyalty, says nMaj

LONDON, March 9, 2022 /PRNewswire/ — Two in five consumers have changed the brand or retailer they buy from since the pandemic began, as they continue to expect more from the online experience.[1]

According to nMaj, the global leader in managed parcel delivery, simply developing a functional e-commerce experience is no longer enough for a supplier to increase sales and loyalty. It has to be the best experience possible.

In his latest guide, “Engage customers and retain them“, nShift argues that retailers and brand owners should make it easy to choose and allow shoppers to try before they buy. They should offer a delivery option that works for the customer, not the delivery person.

The guide outlines four ways for suppliers to overcome these challenges, improve loyalty and increase sales through delivery and returns:

  1. Create a variety of delivery options – for many speed is essential, others it is a cost while some seek durability. A great e-commerce experience should ensure that all are available.
  2. Automate the delivery process – expectations about how quickly items should be delivered have changed. Two-thirds of buyers are even willing to pay more for fast delivery.[2]
  3. Live Tracking of Packages and Returns – a quarter of shoppers are extremely likely to return to a brand that offers real-time order tracking.[3] Tracking deliveries also allows the seller to monitor the performance of carriers and compare the efficiency and quality of different services.
  4. Easy returns and redemptions – over 20% of items purchased from an online store are returned, and each return can cost around £20 to process. In a world where 43% of customers expect to be able to “try before they buy”, this is unsustainable.[4]

Lars PedersenCEO of nShift, said: “Customers today check delivery and return options before they shop. If an online retailer can’t meet their needs now, they’ll just buy elsewhere.

“However, if a supplier can provide a first-class customer experience through excellent delivery and smooth returns, they can build customer loyalty. This increases the chances of repeat purchases and referrals, which, in turn, results in increased revenue.”

Download the guide “Delivering and retaining customers” here.

[1] https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/next-in-loyalty-eight-levers-to-turn-customers-into-fans

[2] https://www.conveyco.com/delivery-statistics/

[3] https://optimoroute.com/monitoring-order-customer/

[4] https://internetretailing.net/marketing/marketing/almost-half-of-consumers-want-an-in-store-try-before-you-buy-option-before-they-buy-online-17985

SOURCE nShift