Recommendations

The results point to a need for brands to re-evaluate how they connect with customers across channels. We recommend the following:

- Reassess any gaps between the in-store and online customer experience environments, particularly in the area of online customer service

It is clear that while the Internet may have begun life as a self-service environment, it has evolved, along with customer expectations, into a far more interactive space where relationships between brands and consumers can be strengthened with appropriate engagement strategies.

Companies with both online and physical channels need to focus on closing the gap between in-store and online environments, embracing channel blur and adopting strategies to reduce website abandonment and increase website stickiness. Websites, mobile platforms and stores should not be run as individual entities but as interacting channels to support and benefit each other.

- Make online customer experience a priority

More and more, online consumers are impatient when trying to purchase online. Many expect answers to their problems instantly, similar to the type of help they would get in-store, suggesting that email and phone customer services alone are not sufficient. Not only will online shoppers leave a website if they do not receive the right customer experience, they may turn to a competitor to meet their needs instead. The key is to engage customers throughout their online journey, both pre- and post-purchase.

- Offer a variety of online customer support channels (e.g., live chat, clickto-call, social media, email, etc.)

One area where this is particularly important is in the provision of help and support both pre- and post-purchase to online customers. Offering a choice of support methods, focusing on speed of response and providing an easy resolution to issues are vital for online brands wanting to ensure that their customers feel valued and listened to, whilst increasing their spend and their loyalty

Key research findings

The research highlights three key trends amongst online shoppers today which influence how brands connect with their customers.

Channel blur

Shoppers are using online, in-store and mobile channels interchangeably in order to make informed purchase decisions, maximising convenience and getting the best possible deals. However, there are gaps between these channels when it comes to customer engagement.

Key findings that relate to this trend:

• 78% of online shoppers often or sometimes research online before shopping in store
• 1 in 4 shoppers (24%) research on their mobile while in store
• 39% of online shoppers now spend the same or more online as they do in stores
• Although impulse shopping is more associated with stores, 50% of shoppers say that they often / sometimes end up buying more than they planned online

Abandonment abounds

Faced with a plethora of competitive website options, shoppers are becoming more demanding in their online shopping preferences. If they can’t find what they need easily or access help quickly and effectively on a website, they will go elsewhere. Customer engagement is known to increase customer spend and loyalty, and is paramount in the quest to reduce abandonment rates.

Great expectations of the online experience

As the adoption of online channels continues to grow, consumer expectations are becoming increasingly refined. Consumers today have very clear demands when it comes to their ideal online experience, with speed, simplicity and the availability of information emerging as key pre-requisites.

Key findings that relate to this trend:

• Shoppers are generally less satisfied with online customer service (67%) than in-store (77%)
• The three key elements of a great online customer service experience are getting an issue resolved quickly (82%), getting an issue resolved in a single interaction (56%) and dealing with a friendly customer service representative (45%)
• 59% would like to have more choice in how they contact online brands, whether this is via a call centre (61%), email (60%) or Live Chat (57%)

Differentiating through “real-time”

The immediacy of receiving assistance is ultimately a differentiating factor for many consumers. With ever increasing demands on their time, consumers place a high value on getting issues resolved instantaneously. A speedy resolution is not always a given when accessing help via call centres or email, but Live Chat is found to meet customer requirements for speed and simplicity. This increases the likelihood of purchase, return visits and enhanced levels of customer trust in the brand.

Channel blur

Consumers are now able to shop anywhere, anytime with any device. They are using online, in-store and mobile channels interchangeably in order to make informed purchase decisions, maximise convenience and get the best possible deals. This presents significant consistency challenges for brands. Ultimately, brands must marry “bricks” and “clicks” to offer a multi-channel brand experience to meet customer needs, and maximise revenue and market share.

While certain characteristics clearly differentiate online and store shopping environments, the basic needs for value for money, convenience, choice and efficiency apply whatever the channel. The top reasons for spending more in-store include the ability to see, touch, and feel goods (82%), the ability to go back to a store if there are any problems (58%), and the immediate need for the product (56%). The top reasons for spending online are largely convenience related—the ability to shop whenever they like (92%), the ability to shop without travelling to a store (71%), and being able to research and find the best products for the consumer’s needs (71%). The factors that motivate in-store purchases give insight into how online retailers might enhance their online customer experience: by offering consumers the option to connect directly with an online agent post-purchase; providing greater product detail via high resolution pictures; or adopting more innovative practices, such as providing video demos, or webcam sessions with a product expert.

Consumers’ online and offline behaviour is seen to be converging when it comes to certain shopping habits. One area more traditionally associated with store environments is “impulse shopping” where customers buy more items than originally planned.

77% often or sometimes doing it. It is a lesser, but still significant trend among online shoppers. Half (50%) say that they often or sometimes buy more than they planned to online. Digital natives (aged 18-34 years) again are leading the way (59%), while the over 55s are less likely to impulse shop (36%). Experienced shoppers - those who are highly sophisticated online and who serve as knowledgeable advisors to others, are also big impulse shoppers (62%). Brands that recognise this increasing propensity to impulse shop online will respond accordingly, offering attractive online “shop windows”, easy browsing, personalised offers and suggesting additional items at various customer touchpoints.

There is no doubt that mobile devices are revolutionising how people shop, yet the shopping process that consumers follow remains largely unchanged – moving from research to selection to payment. Figure 4 shows that around one in four shoppers (24%) now uses their mobile to research their purchase while in store. Mobile commerce is likely to grow as consumers use their mobile devices in new and different ways and retailers respond in turn with mobile innovations and more compelling mobile experiences. Research on mobile devices in store is particularly common amongst digital natives (38%) but almost unheard of among the over 55s (7%). This again is a behaviour that is more prevalent amongst experienced shoppers (39%), with the potential to influence the behaviour of others.

The growing popularity of QR codes, online ordering with in-store pick-up, as well as in-store kiosks highlights how some brands are embracing channel blur and both optimising and integrating the customer experience across channels.

Abandonment abounds

Shopping cart abandonment is every online brand’s nightmare. Brands manage to get a potential customer onto their website, the customer adds items to a shopping cart and then doesn’t purchase. Abandonment is a key measure of e-commerce success and something that all online brands need to monitor, understand and try to prevent.

Central to many reasons for abandonment is difficulty in accessing information that shoppers feel they need to complete their purchase. Not surprisingly, 83% of shoppers admit they need some form of support during their online journey. This increases to 88% among Italian shoppers and is a particular issue for dependent shoppers, those with limited experience of online shopping, where this increases to 90%.

Shoppers admit they need some form of help or support when shopping online, but they are not generally very persistent in accessing this help. In fact, half of online shoppers (51%) will either try once or give up immediately when seeking help before an online purchase. This is particularly the case in Germany (57%), the UK (55%) and Australia (54%), dropping to 36% in Italy where shoppers appear to be more forgiving. It is worth noting that while half of online shoppers will not persist to get help prior to a purchase, if they need help post-purchase, shoppers are prepared to persist to get their issue resolved, 76% trying at least twice.

The stakes are high. Abandonment rates are on the rise, as shoppers become more comfortable comparing prices and product or service attributes. Providing timely and relevant information and help to shoppers is a key weapon in the war against abandonment.

Great expectations of the online experience

For many businesses, the Internet is intended as a self-service environment, and offers a channel to reach new customers, a way to reduce costs and increase margins. However, some brands are recognising that once product and price are taken out of the equation, customer service is one area that can truly differentiate one online brand from another.

Currently, physical stores tend to outperform their online counterparts in satisfying customers. Some 77% say that they are generally satisfied with customer service in-store, compared to 67% online. This is a key opportunity for online brands to close the gap between the store and online customer experience, and consider ways to enhance their online strategy in order to secure shopper trust and loyalty.

Aside from speed and simplicity, choice is another key driver of online customer engagement. Shoppers have a wealth of choice when it comes to where and how to shop and who to buy from. Not surprisingly, they would now like this choice extended to customer service interactions. 59% say they would like to have more choice in how they contact online brands.

There is now demand for emerging, real-time channels such as Live Chat (57%) to be available alongside the more established customer service channels such as call centres (61%) and email (60%). There is also emerging interest in more innovative channels, with 34% stating they’d like to use click-to-call (agent calls the customer once number is entered online), 12% would like to access recorded video demos, and 7% would like live video chat with an agent to access help. Demand for Live Chat is evident across all three shopper types – experienced shoppers are most likely to demand it (71%), although semi-dependent shoppers (58%) and dependentshoppers (49%) would also like to have Live Chat available.

The research highlights the importance of optimising the customer service strategy – focusing on speed, simplicity and choice in order to effectively engage customers, drive loyalty, and deliver true differentiation from both online and offline rivals.

Differentiating through “real-time”

In a store, if a customer needs help they can look around and find someone to assist them at that moment. Until recently, in an online environment, the only sources of help have been to contact a call centre and potentially endure long wait times, or perhaps to email customer services, and wait for them to respond. Today, with the advent of social media and the emergence of tools such as Live Chat, consumers are able to interact with brands in a range of different ways, depending on the nature of the query. There is an increasing expectation to be able to access help in real-time. In fact, 93% see real-time help as being useful when shopping online.

The provision of Live Chat as part of the online customer service toolkit can potentially reap big rewards for brands looking to boost the stickiness of their websites. 51% of online shoppers say they would be more likely to purchase from a website if they can get answers to their questions via a Live Chat conversation. 48% say they would be more likely to return to a website if click-to-chat / live help is available, and 41% say they are more likely to trust a website that has Live Chat available.

Conclusion

As online shopping continues its rapid global growth, consumers are becoming more sophisticated and demanding in what they expect from online retailers. The situation is only made more challenging for brands by the evolution of multi-channel environments and the need to close the gap between online and in-store offerings, in terms of product, price and customer service.

While consumers are shopping in ever smarter ways, harnessing the opportunities that social media and mobile technology bring, they are also looking for retailers to keep pace with these changes. With many pressures on people’s time whether through longer working hours or more leisure choices, speed and simplicity are the operative words for consumers needing to effectively navigate a growing array of shopping choices.

Armed with a physical advantage, stores still lead the way in offering a superior customer service experience, with online retailers now waking up and offering a choice of ways for consumers to interact with them. Listening to customers is at the very heart of a successful online engagement strategy and something that brands can no longer afford to ignore as the marketplace becomes more crowded and competitive. Purchase abandonment is a very real concern for online brands, especially as consumers are expecting a real-time response to any issues they have.

Online customers have set the challenge. They want a customer experience that has speed and simplicity in every interaction. They are not willing to wait for an action and they are not prepared to expend energy trying to resolve a problem. Rather than letting this translate into website or shopping cart abandonment, or brand distrust, retailers must actively address their online customer service platform.

Live Chat can play a critical role in addressing all of the aforementioned concerns. By offering the choice of real-time help, online businesses can do more than just prevent website abandonment. They can effectively support customers throughout their entire online journey, increasing sales, building customer trust and cementing loyalty.