Technology
How improved CX is key to maintaining customer loyalty as customers move online
March 15, 2022 by Michael Scharff
The rise of digital channels further changes the way consumers spend their time and money. E-commerce is here to stay, and according to eMarketer, following a 25.7% surge in 2020 to $4.213 trillion, retail e-commerce sales worldwide are expected to climb a further 16.8% in 2021 to $4.921 trillion. eMarketer also reported worldwide retail e-commerce sales as a percentage of total retail sales in 2021 will be 19.6%, up from 17.8% in 2020 and are expected to grow to 24.5% in 2025. Bain & Company stated in several reports that "retailers that win at e-commerce are laser-focused on creating quick, easy, and seamless shopping experiences — while layering on personalized services that make consumers feel like valued partners."
Evolving CX requires doing a lot more than simply creating and maintaining a compelling website. The customer's whole experience, including the initial digital channel contact, interactions across multiple channels, and the final "touchpoint" with the product or service, are all equally important. This is how today's consumers want to, and increasingly expect to, engage with the companies they do business with online and in-person.
The concept behind an omnichannel approach is to provide a seamless experience throughout all customer touchpoints and across any channel. However, traditional e-commerce websites and mobile applications are not designed to provide the type of cohesive customer experience demanded by today's consumers. It's increasingly important that improving CX is placed at the core of every action companies undertake, from reducing cart abandonment to building loyalty among existing customers.
The most important factor that affects customer loyalty is how they feel
Customer loyalty has become a major buzzword in the e-commerce industry, with everyone from startups to giants like Amazon and Walmart vying to positively influence customers with personalized services. The trend is to try and make customers happy by providing them with a more tailored experience, and today this centers mostly on delivering personalized messages and recommendations based on past purchases and browsing history.
Truly loyal customers are the ones who feel their needs are being met, and one way to do that is by understanding what makes them tick. Does the color of the website matter? Is it important for the customer to be able to buy across multiple devices and channels? These might seem like small details, but the truth is they can make a big difference in how people perceive a company's products and brand. It's not enough to just create an online presence and try to attract as many visitors as possible. What really matters is how a company can make their customers happy and keep them coming back for more.
The quality of omnichannel CX directly impacts loyalty and the bottom line
CX is a fundamental part of loyalty, especially in the age of digital channels. As companies in various industries move more of their business online, they need to pay attention to the quality of their CX if they want to improve their bottom line. When brick-and-mortar stores were the primary shopping method, customers could visit a physical store location and interact with salespeople to help them find what they needed and get questions answered. In the digital age, online channels have become integral for building relationships with customers. In fact, there is no longer such a thing as one "channel."
Today's consumers are increasingly connected digitally through multiple devices. What customers really want is great experiences on every device and channel. Outdated sites that feel slow and cumbersome, coupled with automated service experiences that feel impersonal, can turn customers away in a heartbeat. Research[2] found that existing customers are 50% more likely to try new products and spend 31% more, on average, compared to new customers. Retailers need to provide a rich and consistent experience across all channels to gain trust and keep customers.
Boost customer loyalty by investing in great CX
Digital channels and technology open up a world of possibility for retailers to engage with customers directly to see what works—and what doesn't. With a range of technologies enabling companies to listen, adapt, and evolve their approaches rapidly based on customer feedback, this upward trend is likely to continue for some time.
There is no one right way to create customer loyalty, but there are many ways to use digital channels to improve CX. Digital channels allow for building relationships with customers on a global scale rather than being limited to local interactions. They provide access for customers at any time and anywhere. And most importantly, they offer plenty of opportunities for ongoing dialogue and feedback that can help inform messaging, improve products and offers, and develop loyal customers who keep coming back for more. CX that feels personalized, intuitive, and delightful is what sets the greatest e-commerce brands apart from the pack. This requires advanced technology that can make sense of a growing set of data and variables with the ability to experiment and personalize CX dynamically. Companies investing in such capabilities can create compelling and relevant CX that converts customers and keeps them coming back.
Michael Scharff is CEO and co-founder at Evolv AI
About Michael Scharff
Michael has a wealth of experience in all aspects of retailing and across numerous industry verticals and channels. Michael has built and managed highly successful omni-channel and global e-commerce businesses, led teams in merchandising, digital marketing, innovation and other functional areas.
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