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In the world of retail, the importance of customerretention cannot be overstated. As businesses focus on attracting new customers, it’s equally crucial to invest in keeping existing ones. Retaining customers not only ensures consistent revenue but also fosters brand loyalty and advocacy.
There are hefty fees for merchants when it comes to returns — shipping is costly and restocking takes time and money, which can take a toll on any business. However, not providing a frictionless customer experience has long-term growth implications that you need to consider if you hope to maintain a successful e-commerce business.
The partnership has also fuelled significant advancements in Dr Squatchs direct-to-consumer (DTC) operations, including quicker click-to-delivery, improved customerretention and hands-off fulfilment. It has also helped us improve service and reduce shipping costs exponentially in specific key areas.
Customerretention With both consumers and retailers feeling the pinch of increasing costs, customerretention will be a key theme of 2024. The competitive landscape is overflowing, making customer acquisition more expensive. Customerretention efforts are six to seven times more cost-effective.
Smaller carriers, in particular, will face working capital pressures, making it essential for retailers to build flexible, multi-carrier shipping strategies to mitigate risk and maintain delivery consistency. With delivery reliability significantly impacting customerretention and lifetime value, this must be a key focus for retailers.
By building an intelligently optimised online customer journey you can achieve higher sales conversion rates, improved customerretention, and a stronger, more recognisable brand. This can ideally lead to long-term customerretention and improve the profitability and efficiency of your business processes.
Tara Daly, senior director of product marketing at Loop Returns , shares with Inside Retail advice on getting started in the US market, some tips on cross-border shipping and logistics – including managing returns in a way that builds customer loyalty – and how to drive repeat business.
For most small to medium enterprises starting out in e-commerce, shipping solutions tend to be stumbled upon and developed gradually as the business grows. Retailers who adopt a solution like ShipStation’s, says Boyer, can effect a customer-centric approach built on three pillars – speed, flexibility and transparency.
Loyalty has grown in importance alongside customerretention, with a strong loyalty program and company values both remaining important parts of building out a long-term relationship with customers. ”
First, they assess the security and simplicity of your shipping page. Nailing each stage of the delivery journey The research identifies a close link between the delivery experience and customerretention. From the moment a shopper hits your checkout to the moment your package lands safely in their hands, they are judging you.
According to Clarus Commerce data , during the holidays shoppers cared most about product discounts, special expedited shipping, better return policies and free samples with purchase. Offer personalized benefits that evolve with customer needs. Personalization is critical to a comprehensive loyalty strategy and customerretention.
While more retailers are handing off these tasks to other companies, presumably as a way to cut costs (rising shipping costs were identified as the top challenge among retailers, at 56% ), nearly as many ( 55% , up from 38% in 2022) worry about customer expectations around delivery times.
It would fulfill and ship out orders only for them to be reported weeks or months later as fraudulent, ultimately saddling this brand with both the loss of goods and chargeback fees. One leading luxury retailer was able to reduce losses, keep valuable merchandise and avoid the need for chargebacks by doing just this.
Customers also can access free shipping, samples, birthday gifts and a tier-based rewards program to accelerate their point-earning capability. “Within just three months after the launch, we witnessed an impressive 26.72% improvement in customerretention and a 23.39%. ”
Retailers can no longer turn a blind eye to the reality that today’s increasingly online shoppers are savvier than ever and quick to make snap judgements about brands for as little as delayed shipping. From order placement to shipping notifications, consumers demand regular updates about their orders or returns.
Enhanced Customer Engagement Engaging emails that provide value, such as exclusive offers, product recommendations, or helpful tips, encourage customers to interact with your brand regularly. This consistent engagement strengthens your relationship with the customer and keeps your brand top of mind.
With Distributed Order Management (DOM) systems, retailers can meet the customers’ need for fast fulfillment. DOM ensures speedy delivery by determining the most cost-effective and efficient shipping location to fulfill an order. Let Technology Be Your Secret Weapon.
However, brands cannot underestimate the importance of implementing a compliant and transparent process for collecting and using customer data. . Stand Out Beyond Free Shipping . Last year’s top retention tool — free shipping — fell slightly, from 64% in 2021 to 57% in 2022.
As ecommerce shopping continues to grow, consumers continue to expect free shipping and free returns, since retail conglomerates such as Amazon and Walmart allow this to be their competitive mark. The first way to accomplish this is by not offering free online returns shipped back to your store, which is an option.
With funnel understanding, you can build a customerretention strategy for e-commerce and retail. Customerretention in e-commerce. E-commerce retention starts the moment a customer makes a purchase (in the diagram above that would be the Decision step). Customerretention in retail.
The challenge with ordering too much food is that shipping is expensive and often unreliable with supply chain troubles, and warehouse space is a very limited resource. Grocers that convince customers to become loyalty card holders, for example, will achieve levels of customerretention that restaurants don’t often see.
To close this gap, 44 per cent of retail and consumer goods marketers say they are now leading customer experience initiatives across their organisations (versus just 24 per cent in 2017), and metrics are being shared. In this regard, retailers are re-evaluating and revolutionising their value propositions for higher customerretention.
To drive customerretention and loyalty, most brands and retailers continue to rely on purchase discounts ( 77% ) and loyalty program points ( 61% ), according to Retail TouchPoints research. However, a Deloitte survey reveals that consumers’ loyalty program preferences and expectations are evolving.
While AI presents vast possibilities to enrich this journey, it also ushers in significant challenges that could negatively impact customerretention and a brand’s bottom line. Offer personalized post-purchase product suggestions that genuinely cater to each customer’s tastes.
The tech can check resource planning systems when drafting these answers, helping determine when orders will ship and providing shipping status or support customers in changing orders. The agents can instead focus on dealing with more complicated customer issues or driving customerretention offers.
Then there’s the hassle of printing a return label, carefully repackaging the dress and taking time out of her busy day to drop it off at a shipping location. Veho was built on this core insight: customer-first delivery experiences directly impact brands’ customerretention and customer lifetime value.
One step many retailers can take right away is to eliminate the need for customers to key in the same information more than once. For example, rather than make shoppers type in identical data for their billing and shipping addresses, allow them to check a box if those addresses are the same.
Customerretention is important to every business, but loyalty is hard-won, especially when a single bad customer experience can now be easily amplified to a mass audience in a matter of seconds. Sustainability is becoming more and more of a hot topic, especially with too much plastic used in shipping and packaging.
When your shipping needs are complex, we make things simple. To meet the growing needs of their clients during Covid, Merchgirls created a custom pick and pack process that elevated the offering from B2B to B2C on a mass scale. Sustainable shipping and delivery options. Expert shipping services for clients of all sizes.
Up to 30 per cent of your sales may end in a return, and up to 50 per cent of an item’s original value makes up the return cost, including shipping, warehousing, and labour costs,” explains Tara Daly, senior director of product marketing at Loop Returns. The average rate of customerretention in e-commerce is around 38 per cent.
Up to 30 per cent of your sales may end in a return, and up to 50 per cent of an item’s original value makes up the return cost, including shipping, warehousing, and labour costs,” explains Tara Daly, senior director of product marketing at Loop Returns. The average rate of customerretention in e-commerce is around 38 per cent.
By focusing on customerretention through strategies like personalized communication, exclusive perks, free shipping, and referral programs, you can turn seasonal shoppers into loyal customers who keep coming back all year round.
More than three-quarters ( 77% ) of shoppers cited free shipping as the most influential factor in determining which retailer they buy from, while another 49% chose price. Promote Retention by Offering Something No One Else Can. Having a differentiated product offering also is key to earning a high customerretention rate.
Order Fulfillment When outsourcing, retailers can benefit from streamlined inventory management, order processing, and shipping. Outsourcing this critical function frees up valuable time and resources, enabling retailers to concentrate on sales and customer service.
With 40 per cent of shoppers in the same study stating that out-of-stock items would constitute a bad experience, this could make or break customerretention, compromising top-line growth and customer satisfaction. This could even extend to identifying online stock and shipping it directly to the customer’s home.
One way is to implement ship from store , a service that could potentially speed up order fulfillment and keep shoppers coming back. Read on to learn more about ship from store and how to make it work in your business. What is ship from store? The disadvantages of ship from store. Consider the following. Higher costs.
The Benefits of a Mobile POS for Retail Stores In the fast-evolving retail environment, where customer expectations continue to rise, delivering quick, personalized service is no longer optional; it’s essential for business growth and customerretention.
The business reaches its peak during the holiday season and when the shipping rush is over, there is a bulk in holiday returns. For example, maybe when a package requires international shipping or exceeds a certain amount, the employees have to adjust the shipping or carrier method. Manage Inventory Accuracy. Bottom Line.
This means not just looking at the cost of the product and the number of units you’re selling, but also being clear on your costs around freight and logistics, tariffs, shipping to customers, warehousing and merchant fees. The flipside is customerretention – which again is reflective of your overall business.
Having your inventory information can also save time when products are packaged and set to ship. Properly packaged products guarantee the customer receives their purchase intact, positively impacting customerretention and brand loyalty.
We already offer next-day delivery on some items but want to offer customers an even better service. Expanding our logistics capabilities means we can streamline our processes to provide our customers with quicker responses and faster shipping times. The move is a significant part of our business growth plan.
This instability, together with increased gas and energy prices, has affected shipping costs. The global economic outlook continues to be unsettled, as financial, geopolitical and other challenges weigh on confidence, force costs higher and erode margins. Unstable political environments in Europe and the Middle East can disrupt supply chains.
Integrating all the possible options into a truly multi-channel experience, that allows the consumer to shop and transact on their terms, gives retailers more opportunities to strengthen customerretention and brand loyalty. Attracting and Engaging Customers. Conclusion.
While retailers struggle with fulfilment, Australia Post research shows that fast and free shipping are key drivers of sales. Monash Business School found that consumers prioritise free shipping over fast shipping even more than their global counterparts, and that a lack of free returns was a top turn-off for half of Australian consumers.
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