As more and more retailers elevate their brick and mortar shops to an online presence, ecommerce is booming. It is evident the future of retail is online, and with this comes increased customer expectations. Regardless of the many challenges retailers have faced in recent years, expectations are soaring, with no sign of faltering. Having high quality products at a reasonable price is no longer enough – the shopping and delivery service must also be excellent, and customer reviews have a large part to play in this process.
We have seen a rapid increase in the cost of living in recent years. A combination of rising energy costs, gas prices and rent has led to a growth in frugality amongst consumers. Inflation has reached 7%, its highest rate in 30 years, leading to further tightening of purse strings. Wages are not rising at the same rate as inflation, meaning many customers have less disposable income. Retailers must now attempt to accommodate for the rising cost of living, by decreasing the cost of products through running discounts and adapting their strategy to compensate for rising costs of stock and all the while keeping revenue stable – and make no mistake, this is no easy feat.
In the meantime customers are ruthless when it comes to their expectations and a good customer experience can increase customer spending by up to 140%, showing the importance of meeting and, in times of fierce competition, exceeding them. For example, the demand for fast delivery has increased exponentially, with the portion of customers expecting next-day delivery having almost tripled in recent years. The need for efficient, high-quality service is anticipated now more than ever.
This being said, the post-purchase experience, or everything that happens when a customer clicks pay, is increasingly what online retailers are judged on. In fact 77% of negative online reviews are about bad post-purchase service, such as late/failed deliveries, or a lack of tracking updates. Being able to offer expedited shipping, click and collect, and collection point pickup to manage a surge in orders is a win-win. Having flexible and personalised delivery options at checkout converts more buyers, especially with the popularity of timed delivery, and greener delivery options. That’s why increasing carrier selection, and being able to offer different kinds of delivery options is more important than ever. Although this provides customers with an excellent service, there is also a need for trust in a brand, particularly for first time buyers. This is where customer reviews come in.
Earlier this year IMRG ran a survey with Trustpilot to find out how retailers can build customer trust. This survey would show insights into how retailers can alter their strategy in order to thrive through such challenging times. When asked whether consumers engaged with reviews more or less now than they did a year ago, the most popular response was that they engaged with them more, followed closely by ‘the same’ and very few people said they check them less. This suggests an increased appetite for trust in a brand. Then, when asked what would make them more likely to purchase from a retailer although 80% of respondents said free delivery, nearly 60% said free returns and around 50% said high discounts and next day delivery, while almost half agreed that a high star rating would attract them to a brand.
So is a five star review needed in order to secure customers? IMRG delved deeper into customer sentiments regarding 5 star reviews. They found that if a customer only has positive reviews, 70% would feel the reviews were not credible with 60% going so far as to say they are fake. Therefore in order to gain trust some neutral reviews could be a necessity, in fact 70% of respondents would still buy from a brand if they had some negative reviews as they felt it provided more authenticity so long as the positive reviews cancelled out the negative. Negative reviews may not be as adverse as expected, they can also provide great insight into where a company has gone wrong, and learn from its mistakes. It’s important to dig into your delivery data to discover any trends that might be occurring. You should look at your delivery failure rate and cross-reference it with the most common customer queries and negative delivery reviews you are receiving. From there, you might discover some recurring issues that could be easily solved with a delivery management platform.
Perhaps the way in which a review is handled is the quintessential element of this process. Effective communication is key, particularly post-purchase. Knowing where your parcel is with real-time parcel tracking, and knowing when it will arrive thanks to regular status updates, can help to sooth concerns of those waiting particularity during peak when these concerns are heightened. ‘Where is my order’ (WISMO) queries account for 30% of all incoming eCommerce support help desk tickets therefore by employing a delivery management platform, WISMO queries can be significantly reduced. If a customer feels heard post-purchase, and receives the support they need in the last mile of delivery, it builds this trust.
When responding to reviews, retailers should remember that people are looking for brands that are as quick and empathetic as possible. When answering queries, a 24/7 chatbot can provide quick and comprehensive answers, yet if a customer would like further information, a person on the other end of the computer might be best. Allowing time to fully listen to the customer shows the drive to solve their issue and after providing them with in-depth and up to date information thanks to an API that feeds real-time tracking information into a single system, retailers can be proactive in providing shipping updates to their customers.
Nearly half of the consumers asked said that when they see retailers handle complaints in a quick and timely manner, they’re more likely to buy from them again. Whilst 40% said that they might buy from them. Very few respondents actually said they would still avoid the brand, in fact if a customer does need to return their products if this experience is positive, 89% of customers would shop with that particular retailer again.
It appears as though there is more nuance to customer reviews. In fact, when utilised correctly, it appears as though reviews allow for companies to gain greater customer loyalty and trust. Ultimately that trust in brands and reviews can be hugely influential in ensuring that customers stay loyal. Retailers shouldn’t be afraid to engage but rather welcome shopper opinions in 2022, especially in the delivery process as the answer to their problem with a cloud based software if often only one click away.
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Fergal O’Carroll is the chief revenue officer at delivery management company, Scurri, with responsibility for sales strategy and execution.
His prior roles include EMEA vice-president for commercial sales with Teradata for eight years; prior to that, he was managing director of business intelligence solutions with Avnet Client Solutions for 13 years.
Fergal holds a BA in Business Studies from the University of West London and is a native of Dublin, Ireland.
