One Negative Online Customer Experience Can Turn Loyalty to Disloyalty

Customer Satisfaction during online shoppingCustomer satisfaction has always been a hallmark of customer engagement. Those that can consistently satisfy customers will directly improve their brand image and the bottom line. Customer satisfaction is also more likely to transform into customer loyalty and even advocacy, which increases the chances of long term success.

It is hard to overstate the importance of customer satisfaction and it is not often overlooked. However, there is another component to this type of customer engagement, which is just as vital as the satisfaction metric. This is customer dissatisfaction.

Exceptional customer service may entice shoppers to return, but a new JDA and Centrio study has found that just a single negative online customer experience is enough to make most UK shoppers leave forever.

JDA, a leading end-to-end retail and supply planning software company, has found that a surprising 71% of UK consumers will change their choice of brand after just one online ordering mishap.

This may be a cause for concern as the advent of digital connectivity means that there is no longer a shortage of competitors to which customers can turn. No longer confined to the local shop around the corner, online shoppers can now complete orders with almost any supplier in the world.Loyalty to disloyalty

The JDA and Centiro Customer Pulse 2015 Report also found that almost half (47%) of online consumers reported to have had negative online customer experiences within the last year.

To better provide a positive online customer experience, the report recommended that brands be more aware of how online shopping habits continue to evolve. Only a small percentage (18%) of people were enticed by next day delivery. Yet 50% listed convenience as a significant consideration, and 63% reported that the ease of item return was the most important factor when choosing an online brand.

“Retailers need to move away from treating returns as simply a cost recovery exercise,” said Niklas Hedin, CEO at Centiro. “Instead they need to adapt their processes to take into account consumers’ ever-changing buying habits. Today, it is common for customers to buy multiple items online with the intention of sending some back. The research clearly shows the returns experience is having an increasing bearing on who consumers shop with online. Retailers should look at returns as a further opportunity to enhance the customer experience. In the same way that today’s omni-channel environment is allowing consumers to buy items where and when they want, they would like the same flexibility when it comes to returns.”

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