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Retailers coping with the rapid acceleration of e-commerce have a fantastic opportunity to improve their competitive position using new technological tools for customer engagement. But the challenge of doing so is immense. Free shipping and free returns — both of which take a significant bite out of profit margins — have become the norm, with the exception of a few outliers.
Focusing on customer experience (CX) has become absolutely critical to capturing market share and building brand or banner loyalty online. This is particularly true in a segment of the customer experience that’s often overlooked: the post-purchase CX. And it’s not just about returns.
Here are the Five “C”s required for delivering an optimal post-purchase customer experience.
1 |
Communication.
With the burgeoning use of third-party order-fulfillment and last-mile delivery providers, retailers are increasingly losing control of communication with their customers. It’s useless to allow customers to choose a two-day delivery option if the order is going to languish in the distribution center for days. Even worse, well-intentioned efforts to get those third-party service providers to update end-customers directly result in the consumer receiving inconsistent notifications from companies they don’t recognize.
Communication needs to be not only consistent but proactive. If it’s known that a customer is going to be let down, they should be informed in advance. Sadly, that’s pretty rare. When things are delayed, most retailers respond in a defensive manner by offering a customer service number. However, apologizing for something that’s about to happen but hasn’t happened yet, and perhaps offering a coupon or apology, changes the whole CX.
On the other hand, there’s the looming danger of too much communication. Discount coupon company Groupon went from sending one email a week to four a day and lost customers as a result. Always remember: Communication should be informative, engaging and contain high-quality content. The secret sauce is to avoid being self-serving and always keep the customer in mind.
2 |
Consistency.
This aspect is strongly bolstered by the retailer’s communication strategy, but that’s not the whole story. The consumer should experience buying in a way that’s completely consistent, from placing the order to receiving the goods (and returning them). Amazon, for better or worse, has this impressively under control. Consistency is key in communications, as well as in the entire post-sales process. Naturally, if a consumer has a bad experience with a company (even if it’s the fault of a third-party provider), they’re unlikely to shop with said company again. But if the process of buying and receiving orders feels inconsistent and not on-brand, that can also discourage a future sale. Creating the right experience, consistently, every time, avoids not only disappointment, but surprises. As with communication, consistency comes back to having the right processes and the right technologies in place to manage and solve problems as efficiently as possible.
3 |
Costs.
The returns process might not be the whole post-purchase CX story, but it’s a major (and expensive) chapter. In fact, returns are where profits can leak out fastest in the post-purchase world. One way to reduce the losses is to stop providing a return form with every shipment. While it feels like a positive CX move, it makes it almost impossible to enforce returns policies such as a time window allowed for returns. It also means distinctions can’t be made between items to get back and those that aren’t worth processing onward. Digitizing returns is the solution, making it possible to decline anything that shouldn’t be returned. With the extra visibility and control provided by digitization, a whole new world opens up showing where losses can be reduced, who is returning, what are they returning, and what is the item’s value. Every retailer knows that a huge number of returned items are ending up in landfill when they could be resold, but the retailer just doesn’t have enough data about the items. Further, digitization allows information to be gathered about what packaging can be reused, and also which items can be recycled. Consumers are demanding greater accountability when it comes to these issues; they are now part of the CX.
4 |
Convenience.
E-commerce has introduced all sorts of scenarios that were unthinkable ten years ago, and opportunities abound to surprise and delight consumers by making their lives easier. Home delivery is great, but it should never be the only option. Many companies now offer customers the option of picking up their online grocery order, say, along with packages from other companies at the grocery store. Or consumers can return goods at a third-party retailer they’re already visiting for another reason and get a refund on the spot. Getting this right is fantastic for the consumer, because they consolidate trips, reduce miles, and generally bring another layer of sustainability to e-commerce. One retailer offers label-free, package-free, autonomous returns using self-service returns kiosks, right in the grocery store.
5 |
Conservation.
Sustainability is becoming a much higher priority for retailers, as consumers demand it. But the calculations necessary are super-complex, and the best way forward is to offer intelligent choices. According to a June 2022 survey by Deloitte, 48% of U.K. adults said they have not adopted a more sustainable lifestyle in the last 12 months because they don’t have enough information, and 41% said it was too difficult or complicated to do. In some countries that are a bit more advanced in their “green” thinking, retailers are defaulting to offering customers the most sustainable and convenient options at checkout. For example, the first option might be to pick up an item from a 24-hour locker at a local grocery store rather than home delivery. Option two might be a non-24-hour locker, and option three might be home delivery, but only if you spend more than $50. The sweet spot seems to be to make the consumer think twice, but then show them the best option, while providing other choices.
How Inmar Can Help You Master the Five “C”s
Inmar Post-Purchase Solutions harnesses the power of its data platform to facilitate trade through advanced analytics, and integrated workflows. At Inmar, we’re keenly aware that the post-purchase customer experience is not just about returns; it’s about the entire experience of what happens after someone clicks “buy.” We help our clients retain customers while increasing the lifetime value of products. We view everything not only from the consumer’s point of view but the product’s point of view, giving you an opportunity to reduce the negative impact e-commerce can have on the world, which means reducing waste where you can. Our post-purchase solution is a completely modular, end-to-end solution, starting when a customer makes a purchase, through to returns, with an emphasis on keeping materials out of landfill -- and everything in between. We give you an integrated communications platform that allows you to communicate with customers and let them know exactly what’s happening.
Inmar allows you to streamline your operations and provide unparalleled shopper convenience through our nationwide network of pick-up/drop-off (PUDO) locations. We also provide frictionless returns management and processing services that maximize value recovery and boost sustainability. Our nationwide network of returns processing facilities minimizes transportation requirements. This not only reduces the consumption of fossil fuels, it also lessens greenhouse gas emissions.
Since we know not every business needs everything we provide, our system is modular, and can be used for your choice of business processes. But we believe an end-to-end solution, with everything under one pane of glass, is the key to solving the challenges of managing the post-purchase customer experience in its entirety.
Resource link: https://www.inmar.com/solutions/product-lifecycle-cloud/post-purchase-experience-solutions
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