What is it? - Justin Juschka, Director of Product Management & Global Commerce Platforms at Lululemon, will speak about making purchases as pain-free as possible for customers.
Why is it a can't-miss? - Learn how to stop losing shoppers because of sub-par purchase experiences. You've built a great product and built a better brand around it. Now focus on simplifying your payment process. This will help you get off on the right foot with new customers and keep repeat customers coming back for more
Are you putting enough emphasis on post-purchase experience?
There’s a time lag for online retailers between purchase and package arrival that even Amazon Prime can’t eliminate. Unfortunately, customer experience during this time is often overlooked by brands.
It makes sense.
According to Retail Learning, retail brands spend almost 80% of their budget on attracting new visitors to their website, leaving a much smaller percentage to dedicate to the post-purchase experience. This often results in the brand passing the baton to shipping carriers whose expertise is in delivering packages, not providing a seamless digital experience.
However, the post-purchase experience shouldn’t be an afterthought. Ultimately, these are real customers, not potential customers. They thought enough of your brand to spend their hard-earned money with you. And don’t forget what you learned in Intro to Business: it’s more cost-effective to retain a customer than to convert a new one.
Does this sound like your brand? You are not alone. According to a CMO Council study, over 55% of consumers are not pleased with their online experience. Luckily, it’s not too late to improve how you interact with customers post purchase.
Here are 5 improvements you can make using the Zenkraft Post-Purchase platform:
1) Increase ease of returns
According to a survey by Slice Intelligence, return expenses and return effort are number 2 and 3 on the list of online shopper frustrations. Although brands are aware that consumers value a great return experience, over 50% of e-commerce sites still have a returns interface with substantial usability Issues. Even more concerning for brands with poor return processes is that 20% of users would never or are very unlikely to buy again from a company who has disappointed them with their site’s return experience. The nature of e-commerce lends itself to a higher level of returns than traditional stores, where a customer can physically experience the product and establish a higher level of certainty that it meets their needs.
Processing returns can be costly for a business. RSR Research retail analyst, Paula Rosenblum, estimates that retailers lose a third of their revenue to returns, but losing repeat customers due to a difficult returns experience can end up costing your brand even more. According to the Adobe Digital Index, 40% of US e-commerce revenue comes from repeat customers.
To make your customer’s return experience as stress-free as possible, you can implement self-service returns using our post-purchase platform. This feature allows dissatisfied customers to generate a return label, save it, and print it off at home without having to speak with members of your customer service team.
You might have skimmed past the part about saving shipping labels. At first glance, it doesn’t seem like a big deal, but 67% of users want to print off their label at a later date and 65% of sites DO NOT have an easily identifiable way to save the label. This can significantly reduce stress for those customers who are in a rush or those without a printer in the home. We also recently started supporting QR codes, which eliminates the need for a printer.
Our post purchase platform also allows you to gather data on why items are being returned. For example, a shoe retailer could add a question about shoe fit to determine if a particular shoe runs small or large. This data can then be used to generate reports in Salesforce to identify your most returned products, serial returners, and reasons for returns that can be used to reduce returns, and, ultimately, improve customer experience.
2) Make tracking experience seamless
Confusing, disorienting, clunky, difficult. These are not the words that you want to be associated with your online user experience. But the fact is: sending customers to a shipping carriers landing page can be all of those words.
Despite the clear disadvantages of trusting carriers with this aspect of the customer experience, 21% of e-commerce sites outsource this vital function.
Zenkraft allows you to easily create a branded tracking page hosted on your domain instead of sending your customers to the shipping carrier’s site for tracking information.
Tracking pages built using our Commerce Cloud Cartridge can be quickly customized in accordance with your brand’s style guide, leaving no doubt in the consumer’s mind whose site they are on.
Additional tracking page features will be covered in each of the next 3 sections.
3) Tailor product offerings
With what seems like endless options, shoppers want a little bit of help. Consumers want the same tailored experience they get on Amazon and Netflix on your site. When it’s not tailored, consumers notice.
Customization has become such an integral part of a modern shoppers experience that “50% of consumers say they’re likely to switch brands if a company doesn’t anticipate their needs.”
And when brands DO customize each individual shopping experience with recommendations the results speak for themselves. According to a recent Salesforce study, “Visits where the shopper clicked a recommendation created 26% of ecommerce revenue.” You might be thinking, “Customizing ads like Amazon sounds great. We will get to that after we build our second company headquarters.” It’s not as out of reach as you think. With Einstein recommendations, you can have this Amazon-like capability up and running in less than 10 minutes. Einstein recommendations is an AI-driven Salesforce feature that constantly studies visitor behavior to discover their likes and dislikes to learn which products individuals will be most interested in purchasing.
While most companies will talk about the value of these AI-driven recommendations on your product details page, we suggest using Einstein recommendations on your tracking page to boost revenue post-purchase. Using your tracking page as a marketing tool might seem weird at first, but Zenkraft believes tracking pages are a tool that brands can use to produce significant results. Just ask Icebreaker, which increased clicks by 40% and revenue by 28% by adding Einstein recommendations to their Commerce Cloud site.
4) Keep customers in the know
Consumers understand that delays can be unavoidable, but they don’t like being left in the dark. They are busy, after all. They have jobs, doctor’s appointments, and soccer games to get to. Receiving a package is just one of many items on their to-do list, and they don’t want to be stuck by their front door waiting for a delivery.
A bad experience between buying and unboxing can leave a blemish on the customer experience that has nothing to do with the quality of your product. This is especially true if your product is an inexpensive item because the hassle can quickly exceed the perceived value of the product being delivered.
To avoid a poor customer experience overshadowing your product, we suggest keeping your customers in the know early and often. According to Retail Learning, 40% of e-commerce shoppers check their shipping status one or more times per day after ordering.
It’s easy to keep your customers informed with our Commerce Cloud integration, which will automatically update the tracking page with the latest data from the carrier. Users will be able to see more significant shipping milestones such as: in transit, out for delivery, delivered, as well as a complete travel history of their delivery.
Additionally, your brand will be able to keep customers in the know by sending them notifications via their favorite messaging app or smart speaker. For more information on Zenkraft’s ecommerce shipping notifications, see our recent blog by clicking here.
5) Increase shipping options
The Baymard Institute found that the #1 reason for abandoning an online shopping cart is extra fees related to shipping, taxes, & fees. To counter this, brands must offer as many low cost/free options to customers as possible.
We know that’s easier said than done. That’s why we recommend adding a buy online pick up in-store (BOPIS) option to your tracking page! BOPIS, also known as “Click and Collect,” can be a cost-effective way to provide your customers with another free shipping option.
BOPIS has become very popular with online shoppers and they expect to see this option during checkout. According to Business Insider, the absence of in store pick up can cost you money, 50% of shoppers have determined where to shop based on the absence of BOPIS alone. Brands like Home Depot, Walmart, and Target are doubling down on this trend, and it’s driving growth!
According to Target's COO, John Mulligan, investments in diversifying shipping options for their customers (via in-store pickup, drive up, and Shipt) accounted for nearly three-quarters of it’s 34% digital sales growth in Q2 of 2019.
Consumers love having choices, and BOPIS is definitely a choice your brand should provide to consumers because it can help you as much as it helps them.
BOPIS can help reduce shipping costs, shipping times, and drive customers into your brick and mortar stores, where 85% of BOPIS shoppers admit to giving in to the urge to impulse buy.
Zenkraft builds upon the standard BOPIS functionality in Commerce Cloud, which creates a smooth process where:
- Our platform automatically allocates a store to fulfill the inventory.
- Store staff claim the shipping order, and it's added to the fulfillment queue.
- Zenkraft notifies the customer that the shipment is ready for pickup.
You will also be able to customize your tracking page to provide a flawless experience for your customers who choose the BOPIS option. Rather than force the standard shipping process steps to “fit” BOPIS, we provide you with standard steps for this process (Order Placed, Store Preparing Order, & Ready for Pickup). Additionally, you can add specific store contact information, map functionality, and collect pickup feedback.
The period between the buy button and delivery is crucial for your business. Please don't overlook the importance of the post-purchase customer experience, and always remember that your responsibility to your customer doesn’t end when they hit “Place Order.”
Say goodbye to email shipping notifications sitting unopened in customer inboxes. Zenkraft has added real-time shipping notification support to our Commerce Cloud cartridge. This enables the notifications to be sent directly from the carrier to your customer. Instead, customers who have agreed to receive WhatsApp, Facebook Messenger, Slack, or SMS text messages will be able to immediately see the latest delivery status on the messaging app of their choice.
The process is simple: the customer just needs to enter their phone number into the shipping notifications section during the check-out process. Then, the customer will receive a message like "Order #034090 is out for delivery with FedEx today” that includes a link to your tracking page. This will allow for quicker and more efficient communication between your company and customers. This level of communication from your company can strengthen the relationship with your customer and may even be able to salvage it in the case of a delay. According to DigitalCommerce360, 98% of consumers said delivery is a key part of their brand loyalty. This shows that enhancing the level of communication during delivery could only put your brand's product delivery over the top.
You may think that these users don't want to communicate with your brand via SMS or messaging apps. After all, these apps are their escape from spam that comes through email. It's how they communicate with their friends, not a platform for engaging with a business, right? Wrong! According to a survey by Twilio, 9 out of 10 consumers want to communicate with businesses through a messaging system. When communicating with brands through a messaging system, 47% prefer native SMS, 21% prefer Facebook Messenger, 18% prefer WhatsApp, and the remaining 14% prefer another messaging app.
Unsurprisingly, the “iPhone generation” are huge fans of communicating with brands via messenger. So pay close attention to this trend if your brand caters to millennials.
Alexa, where’s my stuff?
Did you know that approximately 53 million people in the US own smart speakers? The same survey (The Spring 2019 Smart Audio Report) reports that almost 70% of these smart speaker owners use this device daily! This is a large group of people, and that’s just in the United States!
Zenkraft can help your brand engage with this audience! As part of the integration, Zenkraft will support shipping notifications via your smart speaker. Simply say, “ Alexa, Where is my XYZ company shipment?” and the device will update you on your package’s delivery status.
Build better relationships
According to a survey by Slice Intelligence, two of the biggest online shopping frustrations are packages being left on doorsteps and waiting for delivery.
We've all been there: we're waiting for that last-minute birthday or Christmas gift, and we end up stuck at home for hours when we'd rather be doing something else. Don’t leave your customers in the dark. Communication can go a long way during the delivery period.
Zenkraft’s real-time shipping notifications are a great fit for a company that is looking to reduce the stress associated with package delivery and, in turn, build trust with customers.
Can you afford to outsource delivery communication?
Building strong customer relationships is extremely important, but the biggest advantage of our new addition to the Commerce Cloud cartridge is increased revenue. With an SMS open rate of 90%, compared to 20% for emails, the likelihood of consumers clicking through to your branded tracking page will increase dramatically. This means more clicks on your Einstein suggested advertisements.
Retailers spend millions driving traffic to their website, but outsourcing delivery communications to their logistics providers could be costing your brand millions in lost revenue. Why spend money driving traffic to the logistic provider’s site instead of yours?
"To keep up with consumers, brands must adopt messaging as a channel and begin communicating with customers in the same way people communicate with each other," says Manav Khurana, vice president of product marketing at Twilio. Only 48% have systems in place to communicate with customers via messenger. We don't want your brand to be left behind.
US based retailers will find it challenging to establish B2C reverse logistics (RMA/Warranty/Exchanges) in the European market. Europe had 50 countries, 25 official languages and 28 different currencies. There are also many more postal providers and consolidators providing more options compared to the US.
But making returns easy, and cost-effective will have a profound impact on the success in this market.
To help retailers setup for success, we’ve outlined a 8 step process to build out the most cost-effective returns network within Europe. The model below has the following benefits:
It’s best for the consumer as it takes advantage of many countries local postal providers.
It’s best for the retailer since many postal providers are as low as 30% of the cost of a local vendor.
Here is an overview of the model:
It’s worth noting that this most is more suited to retailers who ship smaller packages weighing under 1 KG.
The financial model to achieve the below ended up saving the retailer $1.1m/year in logistics costs. If you'd like us to share this Excel model, please contact us.
The steps to setup a European-based network are outlined below:
1. Analyse your existing returns data
Before overhauling your returns model in Europe we’d encourage you to look at your existing returns data, if available. Which countries in Europe have the highest number of returns but also the highest return rates? It doesn’t make sense to setup a consolidator warehouse in a country with low returns volume. Also, are there areas where you can reduce the return rate ahead of this project? For consumer electronics companies a report by Accenture found that a staggering 95% of returns are unconnected to product defects! Perhaps setting up extra product documentation, better images, an omnichannel customer service experience might be the first step before embarking on the below.
2. Engage with consolidator warehouses
Initially we’d recommend just starting with 2-3 consolidator warehouses. Typically we see these being based in the UK, Germany and France or the Nordics. A problem retailers will face is that the vast majority of 3PLs won’t want to work with them. Fulfillment centers make money by taking a cut of the shipment cost and charging a picking fee. Handling inbound returns from postal vendors means that a large percentage of their profit goes away. There are companies that are prepared to help though. Once a retailer finds a vendor that is prepared to work with them - they should analyse their capabilities and costs. Some questions a retailer should ask are as follows:
What is your inbound handling fee? Typically we see €2-3/item
What are your IT setup costs? Typically we see €1500-3000 one-time setup
What is the daily pallet storage rate? Typically we see €0.1-0.3/day
Consumer electronics companies may want to ask if they offer a service to analyse whether they can offer a service for No Trouble Found “NTF” shipments. The faster they identify this the faster the item can be restocked and resold. The consolidator can also sort the goods before they’re transferred to a 3PL. E.g. they could send 2 pallets per week - 1 for restocking and 1 for liquidation.
3. Decide upon your returns software platform
A retailer will need a centralized platform to handle the returns data that integrates with their e-commerce platform and helpdesk tool.
Zenkraft can handle this for the Salesforce platform but there are other platforms that handle this outside of the Salesforce ecosystem. Here is a quick checklist of capabilities to look for in a returns solution:
Carrier integration - postal vendors are notorious for providing bad APIs, does the solution integrate with the postal services in the countries with the highest returns?
Integration - what does integration look like with your Service tool, CRM, e-commerce platform and OMS/ERP?
Reporting - what are the reporting capabilities? Can you schedule reports, create dashboards? Can you automatically share them across other departments e.g. “Return reasons” reports to merchandising?
4. Select returns channels
Will a retailer accept returns directly from their e-commerce store or will require their customer contact their call center first? Or both? The experience will be slightly different for each company:
On a retailers e-commerce store
A retailer should include workflow that asks product-specific questions about why something is being returned. This should then potentially generate a label with an RMA number embedded. This will help the 3PL scan the shipment for identification which can update your system notifying the consumer that the package has been received. Once a return label has been generated the retailer should show DOPU “Drop Off Pick Up” locations nearest to their customers address for the convenience. DOPU data accessibility varies by country. Some carriers have a really nice API such as PostNord in Sweden: https://developer.postnord.com/api/docs/location
In your Service Center
Service agents should be able to email a shipping label to the retailer's customer. They may also want to include a dynamic script to for their call center agents to ask questions about why the item was returned. The email with the label attached should be branded and show the customer the nearest 3-5 locations for dropping the parcel off.
5. Collect data about why returns are happening
How can you improve if you don’t know is going wrong? We worked with an apparel retailer that used Zenkraft reporting to highlight a single garment had a return rate of 60% and 75% of the returns were due to the item being too small. This data was passed back to the merchandising team who subsequently suggested to the manufacturer that the garments size should be increased.
6. Have your consolidator send a single pallet back to a single facility each week
Depending on your volume and restocking requirements, retailers may want to send the pallet back to your centralized 3PL weekly. They could even ask the consolidator to send 1 pallet back to the 3PL for restocking and the other to a liquidator for disposal as below:
7. Provide Real-time visibility to your customer
Retailers should provide tracking notifications and status on their website to show the status of the return. Often consumers are left in the dark about the status of their return and have to check their credit card bill daily to see when and if the refund occurs. Providing real-time status updates along with email notifications provides transparency to customers:
8. Provide real-time reports and dashboards
Once the system is up and running retailers should monitor its performance. Zenkraft’s customers are using Salesforce’s built-in reports and dashboards to create Control tower-like visibility of their operations. This enables them to identify problems and respond quickly.
When it comes to shipping, studies show that what users really care about is not “shipping speed” but rather the date of delivery, as in: “When will I receive my order?”
The majority of e-commerce sites still provide shipping options such as “delivers in 3-6 days” or “next-day delivery” with a cut-off time such as “Order by 5pm”. This creates a bad user experience for the customer because they have to work out a.) what dates are 3-6 days out b.) if there weekends which will affect the delivery date c.) holidays d.) whether the order cut-off time has passed e.) whether it’s a peak time in the warehouse which will delay the order.
What is the best way for retailers to provide Estimated Delivery Dates in Salesforce Commerce Cloud? There are two options:
Build the logic themselves. This will involve a combination of carrier shipping API integration, some logic to determine the points mentioned above plus some knowledge of the carrier networks and how different service types perform across zones.
Use a Cartridge like Zenkraft’s to provide drop-in functionality.
Below we are highlighting 5 examples in Salesforce Commerce Cloud of where the Zenkraft Cartridge’s Estimated Delivery Date (“EDD”) can be used effectively:
1. Get estimated delivery dates on the product page
According to Baymard’s Product Page study, 64% of users looked for shipping costs on the product page, before deciding to add a product to the cart. Why shouldn’t you implement the same on your page like below:
2. Add estimated delivery dates to the checkout process
We recommend having a free standard and expedited shipping method available in checkout. In addition, if you have physical stores, you should offer in-store pickup. If you don’t have physical stores you might also consider UPS MyChoice or FedEx Office drop-off locations.
You might choose to display the name of the service type along with the actual cost.
Or with some CSS styles and formatting you can apply a better user experience such as in the page below. This is taking into account holidays and warehouse cut-off times:
3. Support Drop Off and Pickup Locations
Having your parcel delivered to a drop-off location provides the most flexibility for the cost. It’s often cheaper than other methods. Most delivery and collection points are open 7 days a week and are always found at the most convenient places. Often, they can be found in petrol stations, local shops, supermarkets and high street stores. Within the US, it’s pretty straight forward to offer Drop-off options with our FedEx and UPS locations plotted on the Google Map as shown below:
In Europe, it’s slightly more challenging because there are many more carriers (DHL, DPD, Hermes to name a few). Most have a drop-off network or partner with a third-party service such as Collect+ in the UK. Please contact us for more information.
Better still, if you’re an omni-channel retailer you should clearly show that in-store pickup is available on the product page and during checkout as an additional shipping option. It can act as a permanent free shipping option for your customers.
4. Add EDD to your tracking pages
Once the order is shipped it’s possible that the carrier might change the estimated delivery date. Therefore you should add the estimated delivery date to your tracking page. On our tracking page below you can see that we’ve added Einstein Product Recommendations using a content slot on the right hand side. The page is built using ISML so you’re free to edit and style it as you choose:
5. Send Changes to your EDD directly to your customer
If there is a failed delivery attempt, or the shipment is delayed due to bad weather, then you should alert your customer as soon as possible. Email is generally the best way which you can either send directly from Commerce Cloud or you can integrate into your ESP (email service provider) to send from there:
To summarize, using Estimated Delivery Dates effectively on your store will have a profound impact on your conversion rates both on product pages and during checkout. They’ll also increase customer satisfaction because you’ll be keeping your customers up-to-date with the shipment status. As the founder of FedEx Fred Smith once said, "The information about the package is as important as the package itself."