Retailers must mind retail communication channel gap
New research from Narvar highlights a big generational gap in how customers wish to communicate with brands and retailers.
2,994 UK consumers who made a purchase online in the last six months were surveyed by YouGov. Key findings include: 20% of all device owners are using voice-control for online shopping. Millennials are 20% less likely to contact a retailer via email than baby boomers, and are five times more likely to use live chat on a website. Being contacted over SMS was twice as popular with those aged 35-44 as it is with Millennials (8% vs 4%). Fast and direct communications about an order is the number one factor in winning the loyalty of Millennials and baby boomers, over the likes of companies sharing recommendations and product reviews.
Amit Sharma, CEO at Narvar, comments: “A best-in-class communications experience is one which helps to build brand loyalty. That means authentic, personal, thoughtful communication across any channel - both pre and post-purchase. Building long-term customer relationships is crucial considering that acquiring a new customer is at anywhere from five to 25 times more expensive than retaining existing ones, and that increasing customer retention rates by just 5% increases profits by 25 to 95%.”
Amazon was highlighted as a standout online retailer for communication by 35% of respondents, but 19% said that no retailer offered the best post-purchase communications experience. Harsh Jawharkar, CMO, Narvar comments: “We are increasingly finding that a one-size-fits-all approach to customer communications is no longer suitable. The advent of new communications channels such as digital assistants, chatbots and IM present unlimited opportunities for retailers to have new touchpoints with their customers. Offering personal, authentic and thoughtful experiences across these channels only has positive outcomes for loyalty and sales levels.”