Retail executives were forced to adapt to a sudden, drastic shift in consumer behavior that continues to evolve as a result of the pandemic. While e-commerce continues to grow in popularity, retailers will need to step up their customer experience (CX) game and truly optimize the digital experience in 2021. Businesses that do not prioritize developing a responsive, fluid, and innovative customer experience risk losing customers and falling behind on revenue.
According to Sitel Group research, the customer experience — whether online or in person — is a critical factor in consumers’ purchasing decisions, so much so that 57% will pledge loyalty to a brand in exchange for a positive customer experience. However, if CX falls short of expectations, more than a third of consumers will consider discontinuing business with a company. Not only will a negative experience cause them to abandon a brand entirely, but half of consumers will also share their frustrations with prospective shoppers via a negative review. Given that 93 percent of consumers say online reviews influence their purchasing decisions, a negative customer experience can have a cascading effect on the bottom line and tarnish the brand’s reputation.
Regrettably, a disconnect exists between retailers and their customers. While nearly all consumers (97 percent) believe brands are attempting to deliver a positive CX, 57% believe brands could do a better job of aligning CX with expectations. Thus, how can retailers deliver a CX that meets (or exceeds) customer expectations without jeopardizing their reputation or revenue?
Retailers Must Put Customer Service First Spots of Sweetness
As consumer demands and preferences shift, some consumers prioritize tangible benefits and value for money, while others prioritize human services. Indeed, the majority (69%) believes that helpful and friendly staff demonstrates a company’s commitment to a positive CX, while others (42%) cite value for money as a primary factor in brand loyalty. With shoppers demanding superior customer service, it’s unsurprising that the majority of consumers (25 percent) cite unfriendly staff as the deciding factor in discontinuing business with a brand.
Another critical CX requirement is efficient business operations. Prior to the pandemic, 82% of consumers expected brands to be available 24 hours a day; however, the average response time for businesses is 12 hours. Quick responses to questions (53 percent) are critical, with 21% admitting they will abandon a business if the service or response time is too slow. User-friendly websites (51%) and live chat support (40%) are also considered necessities, indicating consumers’ desire for immediate gratification. To meet consumer demands and preferences, retailers should implement self-service technologies that enable quick and effective resolution of issues.
Developing a Customized Approach to Retaining (and Acquiring) Customers
Along with investing in CX tools, retailers must consider a diverse pool of prospects and approach customer interactions with a personalized approach. For example, 40% of all consumers and 47% of millennials believe brands should offer an online chat feature facilitated by live agents to resolve customer service issues effectively. For Gen Zers, a strong social media presence is synonymous with a brand’s commitment to providing an optimal CX, according to 31%. Retailers must leverage omnichannel experiences to meet their multigenerational audience’s diverse CX needs.
Recognize Nontraditional Customer Engagement Techniques
Traditional customer experience tactics are not the only factors that contribute to customer engagement and loyalty. More than a quarter (27%) of customers say they prefer to purchase from brands with clear corporate social responsibility (CSR) initiatives, as social commitments are a significant driver of positive customer experience (CX).
With so many shopping options available today (e.g., buy online, pick up in store (BOPIS), drive-up, online, and in-person), navigating customer loyalty can be challenging. While the pandemic has heightened consumer expectations for CX, many consumers (73 percent) believe that it only takes one exceptional brand experience to raise their CX expectations for all other organizations, regardless of industry. While the majority of consumers (90 percent) are willing to pay more for a product or service with superior CX, there cannot be a one-size-fits-all approach. Retailers will find themselves surviving in a competitive landscape while maintaining high sales figures through new investments in customer service tools, providing instant gratification through customer engagement, and taking a cause-related approach.