September was an especially exciting month for the e-commerce and logistics industry. The 9/9 online sale season just started, marking the beginning of the year-end e-commerce peak season.
At Parcel Perform, our team has been involved in several conferences and engagements in Singapore, Hong Kong, and Germany this month! We’re excited to share how we help merchants and logistics companies improve the post-purchase e-commerce experience – especially important during the peak season.
At Supply Chain Asia in Singapore, our Head of Marketing and Communications Cheryl Han shared insights and tips about leveraging the post-purchase experience for marketing campaigns. At the same time, our founders Dana von der Heide and Arne Jeroschewski also spoke at DMEXCO in Germany and in Hong Kong’s WMX Asia respectively.
In this article, we’ll be sharing some key highlights from our team’s sessions about the post-purchase experience.
The customer engagement process does not end at checkout.
A lot of attention is devoted to the pre-checkout part of the shopping experience; with copious resources and effort spent on website UI enhancements, site load speed and other customer-facing factors.
All these are important and play a crucial role in attracting customers. But there’s untapped potential in the post-purchase experience to build customer loyalty and increase your customer lifetime value.
To create meaningful, trusting and lasting relationships with shoppers, retailers must continue to deliver a delightful and memorable experience well beyond the order confirmation. – Adweek.
The new online buyer’s journey now accounts for the ‘customer loyalty loop’ and the post-purchase experience.
Previously, the online buyer’s journey was typically constructed as a linear funnel, with customers moving from one stage to another in a predictable fashion.
Source: Blue Corona
“The new marketing funnel isn’t a funnel at all. It’s a looping journey full of twists and turns.”
With technology and multiple touchpoints across devices, coupled with shorter attention spans, today’s potential buyers behave very differently.
As retailers, you invest time and resources in attracting new customers. Naturally, you’ll want these customers to stick with you for the long haul. Did you know it costs 5-25 times more to acquire new customers versus retaining existing ones? A repeat customer also spends up to 67% more than a new one.
All these point to the fact that investing in your current customers makes a lot more sense. In fact, 80% of a retailer’s future profits come from 20% of its existing customers.
Engaging your customers at the post-purchase journey helps to reinforce the loyalty loop. Here’s where you can send crucial updates such as delivery delays or offer an option to reschedule delivery timings to the customer’s convenience, or fun marketing campaigns such as sending product recommendations or invite your customer to write a review about the product, etc.
When 60% of consumers rate their post-purchase experience as “underwhelming” (CMO Council), retailers who address consumer expectations after checkout stand to gain a significant opportunity to engage customers and expose your brand to a highly-engaged audience.
Summary of engagement opportunities available throughout the post-purchase journey.
Why? These email updates are valuable and timely for customers. Research shows 64% of customers consider transactional emails as valuable content – they’re more likely to click on an order confirmation email and spend more time reading and taking action compared to a promotional email.
Imagine yourself in the customer’s shoes; if you’re eagerly waiting for a delivery, you’ll be more likely to click on any updates or communication regarding your parcel. That is the magic of post-purchase communication.
Unlock powerful marketing capabilities in the post-purchase experience.
We’ve shared about the many engagement opportunities available to you in the post-purchase experience. It’s time to unlock them to build customer loyalty and grow your customer lifetime value.
With the e-commerce peak season here and a slew of shopping holidays coming up, now is the best time to strategize and plan to make full use of these opportunities to acquire and retain new customers.
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Joshua is the Marketing Manager at Parcel Perform. He loves technology and a good book. Outside of e-commerce and Parcel Perform, you can find him in the kitchen, gym or yoga studio.