‘Post-purchase’ is one of the hottest topics in e-commerce industry right now, with retailers, brand marketers, and analysts devoting hundreds of hours talking, experimenting, and studying it. No wonder: 61% of customers are influenced by online reviews prior to making a purchase, so keeping those smiles on your customers are more important now than ever. Today’s post-Amazon online shoppers expect much more than a handwritten note in their parcel – and savvy retailers are stepping up with best-in-class shipping experiences as a way to delight customers.
We know that creating experiences, be it in any part of the customer’s journey, is not a cookie-cutter exercise. However, a common thread that’s unique to the post-purchase stage is the customer’s state of mind – defined by three interchangeable behaviors reflecting nuances of dissatisfaction with their online shopping experience: buyer’s remorse, comparative assessment, and cognitive dissonance, as illustrated below:
Knowing this, retailers have the opportunity to steer customers away from these negative behaviors by addressing the anxieties associated with online shopping – such as not receiving their orders on time, or being disappointed with the product when it arrives. By allaying these fears before they become a reality, retailers are amplifying the positive experience that shoppers can expect they’ll receive when they choose to shop on a particular online store. To do this well, retailers must examine all aspects of the customer’s post-purchase journey where it can add value to, with one area in particular being the shipping process.
While ‘shipping’ may sound like a dry or daunting thought initially, it’s an exercise that’s proven to accelerate the growth of your e-commerce business. Here’s five reasons why you should be paying more attention to your shipping strategy:
- 89% of retailers experienced more sales
Increasing shipping options tell your shoppers that you’re listening to them: 89% of over 1000 Americans we polled last year said they expect to see multiple shipping options at checkout. More compellingly, 86% of US retailers ranging from micro to enterprise told us last year that increasing the number of shipping options at checkout provided a sales uplift – with mid-market retailers witnessing the highest rate of uplift at 43%.
- 78% of retailers increased their customer base
A major plus of having an online store is the ability to market and sell your wares to virtually anyone in the world with an Internet connection. However, the logistics industry is only beginning to catch up with the fast-moving, quick-changing e-commerce industry. By introducing a range of shipping options, 78% of US retailers polled increased their ability to reach a wider geographic area, with 30% experiencing a substantial impact.
- 71% of shoppers abandoned their carts
71% of shoppers abandoned their carts due to high shipping prices, so having a plan in place that streamlines your operations to offset shipping fees, or even help you cost-effectively offer free shipping, will help you win over a large group of customers. With hundreds of thousands of e-commerce sites out there in the market, there’s nothing to stop shoppers from buying merchandise from your competitors should they feel that your site does not satisfy the value equation.
- 60% of shoppers will pay a premium
To ensure that they receive their orders in time, 60% of U.S. consumers polled will pay a premium for express shipping (1 to 3 days), 55% will pay for same-day shipping, and 43% will pay for hyper local delivery (1 to 3 hours). This shows that while free shipping is a strong motivator to complete an online purchase, undifferentiated free shipping is a thing of the past – with many consumers seeing the value in different methods and speeds of shipping that cater to their needs.
- 41% of retailers damaged their brand
When a shipment does not work out as planned, 41% of U.S. retailers polled found that their brand image suffered – with small and enterprise retailers feeling the heat the most at 45% and 69% respectively. With new customer acquisition costing retailers six times as much as retaining existing customers, not having the ability to preserve the reputation of your brand with post-purchase tactics will have a detrimental effect to your bottom line.
Shipping is no afterthought. By integrating shipping into your post-purchase strategy, you have a better chance at keeping your customers happy – and the flow-on effect of that is that they’ll keep coming back for more. Another upside to getting shipping right is that it reduces operational inefficiencies and fulfillment friction, so you can grow your business quicker.
Temando is a provider of shipping and fulfillment software.
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