With the goal of profitability on the horizon, there are many challenges facing ecommerce brands today:
- Increasing rate of returns.
- Difficulties in managing exchanges.
- High acquisition costs.
- Few levers to boost LTV.
- Poor post-sales experience for customers.
- Loss of brand reputation.
- High reverse logistics costs.
To face these challenges, more and more brands are going further with their online shop and are looking to offer not only a unique product, but also an exceptional shopping experience.
To optimise their ecommerce, businesses implement various actions from the moment a potential customer arrives on the website until they make a purchase. It is on this customer journey when key aspects are reviewed, such as:
- The product sheets: description of the garment, its materials, care, etc. Here, images play a crucial role in facilitating customers' purchase decisions. To enhance the customer experience, companies often use various technologies such as videos, virtual reality animations, and other interactive tools to showcase their products. These tools allow customers to see the product in movement, which helps them to make informed purchase decisions.
- Shipping conditions: free shipping, delivery times, etc. Including this information is key, as it helps (or slows down) the purchase at that moment. If you need the product for a specific date and you know that it will not arrive then you will probably have to go to another ecommerce site to buy the same or a similar product.
- Payment methods. Over the last few years, we have seen a boom in deferred payment methods, such as Scalapay. And the use of Bizum has also spread. Listening to customers' needs is key to meeting them and their expectations.
- Other factors such as: loading speed of content, highlighting promotions, simple checkout process, etc.
All of the above are key at the time of purchase. But what happens once the conversion has taken place? A multitude of factors come into play that are fundamental to the operation of any ecommerce brand.
1. Logistics
We include the management of the warehouse where most brands' stock is stored, and we coordinate with carriers for distribution to shops, end customers, or other destinations.
2. Communication with the customer
The customer must be informed at all times about the status of their order. They should also have direct contact with the brand at their disposal. And importantly: don't forget sincerity. Trust at this point is key. Keep in mind that the customer has spent their money without having your product (most of the time they haven't even seen it in person). Customers trust brands to deliver products correctly and on time. If there are going to be any issues, especially with delivery, keep them informed to maintain trust.
3. Returns and exchanges
No one likes to make a return, but unfortunately they keep happening. It is unavoidable. That's why it's essential that for these transactions your customer can also request them quickly and easily. A fundamental fact that we collected in our State of Returns Report is that 91% of customers would not buy from an ecommerce site again after a bad experience with returns and exchanges.
Do not hinder or make this operation difficult. Think that a customer who returns doesn't do it because they want to, they do it out of necessity. Therefore, here are some key factors that will help you turn your returns into a loyalty lever:
- Provide a simple returns and exchanges process. No small print or gimmicks, allow the customer to have all the information about their request at all times so that there are no possible errors.
- Offer a returns and exchanges policy according to your customers' needs. Listen to them and offer solutions to their problems. They will appreciate it and it will be one more point to boost the trust factor we mentioned above.
- Turn your returns into exchanges. We know that exchanges are usually a headache for brands as it is not always easy to synchronise with stock. But with Reveni it is. That's why you can convert a return into an exchange directly once the customer has indicated that the reason for the return is an incorrect size. This recommendation capability facilitated by Artificial Intelligence will help you streamline processes and offer a better customer experience.
- Boost upselling through product recommendation. Take advantage of return or exchange requests by giving your customers quick access to other products. For example, highlight the new collection or even a series of products that you want to liquidate at the end of the season. This is another option for building loyalty and converting a return or exchange into a new purchase.
Instead of solely focusing on attracting new customers to improve profitability, consider how building customer loyalty can also increase profits.