Inside The Numbers
What customers value when they’re shopping in a traditional retail store is very different from what they consider to be important when they’re shopping online. In a physical store, it’s about friendly, knowledgeable associates, eye-catching merchandise displays, cleanliness — the list goes on. Online shoppers care about pricing, flexible returns and website usability.
In the Consumer Intentions and Actions survey, BIGresearch and STORES took a look at a handful of the most central components of customer service. Survey respondents were asked to provide feedback on the importance of each service element by ranking them using a scale of 1 to 5; 1 indicates that it’s not at all important, while 5 signifies something is “very important.”
Overall, low prices are considered the most important “service” to online shoppers, followed closely by free shipping and a flexible returns policy. Compared to the findings reported in 2007, the most dramatic change is linked to low prices: A year ago, 66 percent of those polled considered them to be very important; that figure jumped to 73 percent this year.
With many consumers sensing that their disposable income is shrinking, the value they assign to a retailer’s pricing strategy and to services such as free shipping has increased incrementally. In many instances, the price may be the same online as it is in the store, but if they don’t have to drive to the mall to get it – and it ships for free – shoppers are elated.
It’s important for online retailers to keep in mind how much time shoppers spend conducting research prior to making a buying decision and what effect that has on in-store purchases. BIGresearch found that 44 percent “regularly” conduct online research before making a purchase; 47 percent do so “occasionally.”
What types of products are shoppers most likely to research prior to buying? Survey data shows that electronics, apparel, appliances, home improvement items and shoes top the list.
Pick Up or Return at Store – Average: 3.9
When the concept of buy online, pick up in the store debuted some eight years ago, it was unique and desirable. It remains a point of competitive differentiation today, and is a key draw for shoppers who “want it now.” Shoppers age 55 and older are especially drawn to the concept.
The findings bring home the value of cross-channel synergy and call attention to the fact that any initiative driving in-store traffic is perceived as a win.
Will in-store pick-up remain popular? If retailers reduce shipping costs (or eliminate them altogether) shoppers may find themselves weighing the convenience of “get it now” versus the desire to save on gas costs.
On a scale of 1 to 5 — with 1 meaning
Not at All and 5 meaning Very —
how important are the following
services when shopping online?
Flexible Return Policy – Average: 4.2
Make it easy for shoppers to return a product, or there’s a darn good chance they’re not going to buy from you. Research shows that women, in particular, expect dot.com retailers to be accommodating when it comes to returns; 64 percent say it’s “very important.”
Shoppers expect to be able to return just about any item they buy online to a local store – no questions asked. Any multi-channel retailer that requires online customers to take on the aggravation and financial cost of returning merchandise through the mail is seen as hassling its clientele.
Most online operations have adopted a system whereby they can send a customer a return label via e-mail – or enclose it in the original packaging. Newgistics, a leader in this space, now offers customers of participating retailers free U.S. Postal Service pick-up for any return. It’s another level of service that will quickly become a must.
On a scale of 1 to 5 — with 1 meaning
Not at All and 5 meaning Very —
how important are the following
services when shopping online?
Free Shipping – Average: 4.3
Free shipping is a carrot that more and more online retailers dangle in front of shoppers in an effort to win their business and stay competitive. Earlier this year it seemed as if higher fuel prices would be a death knell for free shipping, but experts predict that as online retailers inch closer to the holiday season, shipping costs will be reduced by some and slashed by many.
A staggering 85 percent of women surveyed rate the importance of free shipping as either a 4 or 5; with that kind of shopper feedback, retailers can’t risk turning shoppers away with steep shipping costs.
Some retailers will offer free shipping if shoppers spend a certain amount; others will offer flat rate shipping fees. Both are palatable. Shoppers understand that “someone has to pay”; the key is to
determine what makes sense to them. If they abandon their carts at the first sign of shipping costs, you’ve got a problem.
Low Prices – Average: 4.6
Nothing is more important to shoppers these days, and 77 percent of women deem low prices to be very important. As CEOs of their households, their mindset is downright crucial for retailers.
Still, managing a low-price strategy against the backdrop of the rising costs of doing business is not going to be easy. The desire for low prices is likely to drive shoppers to the plethora of price-comparison websites. BIGresearch finds that 44 percent of shoppers “regularly” research products online before buying; they know what a fair price is for the item they intend to purchase.
Will shoppers abandon a retailer they know and trust in favor of a lesser-known competitor that’s pricing goods a few dollars cheaper? Time will tell. Still, many acknowledge that low prices often mean a trade-off on other product attributes. They’ll make that trade-off for some items; in other instances they won’t.
On a scale of 1 to 5 — with 1 meaning
Not at All and 5 meaning Very —
how important are the following
services when shopping online?
Live Toll-Free Customer Service – Average: 3.8
A real person to speak with as they shop online . . . you can almost hear shoppers sighing collectively. Being able to ask a question, clarify a policy – or merely enjoy the companionship (and anonymity) of live customer service is a valuable piece of the online puzzle.
Women are especially drawn to the “live” customer service feature on many websites, especially those 55 and older. There’s a convenience factor, to be sure, and users generally like the more relaxed conversation versus speaking with a call center operator who is more eager to take an order and move on.
There are other benefits, too – especially for the online retailer. Experts report that potential customers are more than twice as likely to purchase products and services after using a “live” help service: they say it builds customer trust and confidence in the online retailer’s business. Live chat solutions can also be used to build long-term customer relationships if retailers are savvy enough to listen and respond to shopper feedback.
On a scale of 1 to 5 — with 1 meaning
Not at All and 5 meaning Very —
how important are the following
services when shopping online?
Website Easy To Use – Average: 4.0
How easy you make it for shoppers to use your website, find what they want and complete a purchase can make all the difference when it comes to converting browsers into buyers. Women (54 percent) are more inclined than men (41) to rate this feature very important, and shoppers 35 and older consider website usability vital.
Confusing or mislabeled links can be the kiss of death, and making it difficult for shoppers to locate vital information is akin to ushering them out the door. Shoppers expect a website to load quickly; they’re annoyed by pop-ups and frustrated when they can’t find a price or see details on a certain item.
When an online retailer gets it right, however, an easy-to-use website can play a sizeable role in increasing sales, reducing customer service calls and boosting customer satisfaction and loyalty.
