As retailers prepare for the crucial holiday shopping season, many could be driving customers away by promoting irrelevant products, failing to build customer relationships through intelligent follow-up, and ignoring consumer preferences on end-to-end order tracking.
The OrderDynamics study compares customer acquisition and retention to a dating game and found that retailers miss the mark in many areas of the customer relationship.
A majority of retailers received failing grades in shopper follow-up by sending irrelevant information. For example, an apparel retailer sent promotional emails about womens sweaters to a researcher that saved mens fleecewear in an online shopping cart, while a pet supplies retailer sent promos on cat and dog food to someone who exclusively browsed the aquatics department.
A third of retailers also never follow up with shoppers, while others bombard them with emails. Some 33 per cent of retailers never follow up when researchers signed up for their mailing list, missing out on a key opportunity to build and nurture the customer relationship. Others went overboard; one retailer, for example, sent 17 emails in a four-week period ? a sure turn-off for consumers.
Poor site search results lead to missed sales opportunities. 46 per cent of shoppers prefer to go directly to a retailers website to search for products, yet many retailers commerce sites miss the mark for online search accuracy ? leading to customer defection and lost sales. For example, one retailers site returned 65 results for silver cufflinks,” but only three items were cufflinks, while the others were silver but not cufflinks.
Our message to retailers is simple: customer relationships are theirs to win or lose, and retailers must focus on these disconnects in their customers experiences to succeed during the vital holiday push,” said Kevin Sterneckert, CMO, OrderDynamics.
“They must use data more intelligently and effectively in order to engage and win shoppers. Retailers must walk a fine line between romancing customers and over-approaching them to ensure that shopping is a seamless experience. If retailers disappoint shoppers, they risk losing not only the initial sale but the customer relationship as well.
Sterneckert continued: We call these disappointments and disconnects in data and operations the Ghost Economy, and it is worth more than $800bn annually to global retailers to solve these issues and create frictionless experiences for their customers.