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Merchants Have 10 Blind Spots Leading to Lost Repeat Business, Reveals Survey

Merchants Have 10 Blind Spots Leading to Lost Repeat Business, Reveals Survey

Merchants Have 10 Blind Spots Leading to Lost Repeat Business, Reveals Survey

According to research, The Retail Expectation Gap, undertaken by Parcelhub and Brightpearl, online merchants have several customer retention expectation blind spots.

The research which spoke to both consumers and leading retail decision makers has identified 10 key blind spots that merchants must take notice of when looking to improve customer retention.

The likelihood of customers coming back and remaining loyal to a brand is hugely dependent on what happens during the delivery and receipt of items and these blind spots are the difference between why customers do not repeat buy versus the different reasons merchants believe.

Merchants’ customer retention blind spots:

The top reasons why consumers said they would stop doing business with a brand include poor product quality (71%), high delivery costs (62%), poor customer support (58%) and missing or wrong items delivered (54%). This compares to much lower results for any of the pre-purchase issues, such as website problems (30%) or an item not being in stock (25%), which were both ranked the lowest. The results show that the post-buy button experience requires significant attention from merchants.

Retailers, on the other hand, ranked both potential pre-purchase issues as the highest, with 43% believing that an item not being in stock would cause a customer to stop doing business with a brand and 30% quoting website problems as an issue. These results demonstrate the chasm between the priorities of consumers compared to the perceptions of retailers.

Damaging reviews

Reviews are an important tool used by potential customers to influence their purchasing decisions. The research found that 92% of consumers surveyed consider reviews to be important, with almost half (46%) considering reviews to be very important. Acknowledging the post-purchase customer expectation blind spots will significantly impact the positivity of the overall customer experience.

Steve Marjoram, Managing Director Parcelhub, said: “We are all prone to second guessing why someone makes a decision, and this research shows that these preconceptions are impacting on a retailer’s ability to retain customers. Our research highlights the customer retention blind spots of merchants which will impact their bottom line. Not only affecting repeat purchase but leading to poor reviews dissuading potential new customers from using that retailer or brand.

“The key to customer retention success lays in having an exemplary post-purchase delivery experience. Parcelhub as the UK’s leading provider of multi-carrier delivery solutions and proactive tracking support can help retailers and brands transform their customers’ experiences leading to greater initial and repeat sales success.”

For more information about The Retail Expectation Gap research of consumers and retailers into the evolving e-commerce delivery landscape – download the white paper.

About this survey

The survey was conducted among 1000 consumers and 100 retail decision makers in organisations with a turnover of over £250K. The interviews were conducted online by Parcelhub and Brightpearl.

About Parcelhub

Parcelhub is the UK’s leading provider of multi-carrier delivery solutions and proactive tracking support. Flexible and scalable, its portfolio of services integrates seamlessly with marketplaces, eCommerce platforms and order management systems, providing hundreds of multi-channel retailers, global brands and wholesalers with one access point to 20+ carriers and 600+ delivery options.

Parcelhub is part of the Whistl Group. Whistl is a £685m+ revenue, delivery management company that provides mail, parcels, leaflet advertising, fulfilment and contact centre services in the UK and internationally. Headquartered in Marlow, the Whistl group of companies operate across the UK, and handles in excess of 3.6bn items a year.

About Brightpearl

Brightpearl is a complete digital operations platform for brands, retailers and wholesalers, that’s designed to scale with fast-growing eCommerce brands. The platform offers flexibility to respond to rapid changes in demand and smooth integration with other core operational systems within the organisation. Brightpearl manages everything after the buy button; from order management to accounting, inventory, warehouse management, returns and more.

Simon Wright

As SEO and Content Marketing Manager at the Whistl Group, Simon has over 10 years' experience in both B2B and B2C marketing, and as a result, offers a unique perspective on the pre- and post-checkout delivery experiences. Simon writes regularly for both the Parcelhub and Whistl blogs and is passionate about helping retailers make delivery their competitive advantage.

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