Retailers are in a tricky situation. When online sales are flat-lining in the UK, focussing on the bottom line seems the obvious choice. But in a world where technology is advancing at a rapid pace, retailers are under pressure to keep up with consumer and market demand.
Our latest report, A Nightmare on E-Street, surfaces the striking disparity between what shoppers desire and where retailers are currently focusing their efforts. While retailers are focussing on growth through new channels and market expansion, they could be leaving money on the table by ignoring customer demands. It has never been more important to actively listen, address the basics and better serve customers and their shopping habits.
Expectation gap - affordable delivery and speedy checkout
Nailing delivery costs is big business for retailers, and too often they’re falling short of the mark. The majority of Brits named expensive delivery costs as their biggest pain point when shopping online, with half (48%) admitting that expensive delivery costs would be the leading cause for them abandoning their shopping cart ahead of payment.
For todays ‘time poor’ consumers, it’s not only expensive delivery costs that can put them off their purchase - speed and simplicity are also a must-have for all retailers. Of the three quarters (76%) of consumers who admit they’d abandon their shopping basket if the process took too long, 41% would do so after four minutes, with 15% only giving a retailer up to two minutes before they gave up.
Technical debt holding retailers back
Retailers are starting to wake up to the instrumental impact that reducing technical debt can have on every aspect of their business, with reducing technical debt emerging as the biggest area of future investment for UK retailers (34%) as they battle against rapid advancements in technology and the ever changing nature of the retail industry. The question will be, can retailers invest quickly enough to keep pace with ever-changing consumer expectations?
Payment headaches that are driving customers away
It’s clear that consumers are looking for a hassle-free checkout experience. In fact, 28% of consumers named complicated payment processes as a major gripe with retailers, and 26% added payment failures as a major pain point.
What’s more is that two in three (69%) will abandon a cart if their preferred payment method is not available. These payment headaches have a direct impact on customer behaviour by forcing them to drop out of the purchasing process. The harsh reality is that this happens all too often and what’s worse is the average value of each abandoned cart is £213.84.
The bottom line
The research demonstrates how retailers need to adapt to close the gap with consumer demands. While growth is critical for retailers, acquiring customers through new channels and markets can be a costly exercise, so focussing on the basics could be a cost effective way to convert existing purchases.
Take advantage of the valuable insights and optimize your ecommerce strategy to keep up with consumer demand and market trends.
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