Customer Service Is Make Or Break For Online Shopping

September 19, 2023

Industry Fact:
88% of Gen Z Believe AI Will Improve Online Shopping

Changing expectations of today's consumers as their priorities for ecommerce shift to relevant deals, low prices, and a personalized shopping experience, particularly at checkout.

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| INSIGHTS

Customer Service Is Make Or Break For Online Shopping

A recent consumer survey conducted by Airkit.ai, a generative AI customer service platform, sheds light on the changing expectations of online shoppers and their impact on e-commerce. The responses from US consumers reveal the critical role efficient and empathetic customer support plays in maintaining customer satisfaction. With rising inflation and the possibility of a recession, brand loyalty, and customer retention are becoming increasingly important in the competitive retail landscape.

Key insights from the survey include:

  1. Cost of a Bad Experience: 64% of respondents indicated that they would avoid doing business with a company after a poor customer service encounter, underlining the importance of providing quality customer support.

  2. Personalization's Power: 92% of consumers are likelier to shop with brands offering real-time, tailored customer service. Custom coupon codes, email promotions, and word-of-mouth product recommendations are among the most popular personalized offers.

  3. Frequency of Interaction: 76% of participants reached out to customer service 1-3 times in the past year, emphasizing the ongoing nature of customer interactions and the need for consistent support.

    This survey underscores the need for brands to reevaluate their customer service strategies, with AI-driven solutions like Airkit.ai eCommerce offering the potential for faster service, increased customer satisfaction, and reduced support costs. The increasing use of chatbots and their benefits, such as instant responses, further highlights AI's transformative role in reshaping customer service dynamics in the e-commerce industry.


| NEWS

Ecommerce
Shopify Integrates Buy with Prime Feature

Shopify and Amazon have partnered to integrate the Buy with Prime feature into Shopify stores, allowing Prime members to enjoy free delivery and easy returns via Amazon's fulfillment network. Initially available on an invite-only basis to select Shopify merchants, the service will be accessible to all U.S.-based Shopify sellers using Amazon's fulfillment network by the end of September, streamlining operations and offering added convenience for merchants and Prime members.  [retaildive]

Retail
U.S. Retail Sales Expected To Grow 3.% This Holiday Season

Looking back at the 2022 holiday shopping season, inflationary pricing and pent-up demand, coupled with excess savings and rising wages allowed consumers and retailers to navigate the season well. After years of inventory and spending habits being in flux, the 2023 season will bring a broader rebalancing across categories, channels, and sectors in alignment with macroeconomic trends.

Retail
Retailers’ Catch-22: Policy Abuse Hits Profits Hard

Online retailers are grappling with a challenging dilemma as 90% of them suffer financial losses due to consumer policy abuse, such as excessive returns and coupon misuse. Despite the financial hit, 93% believe they must maintain these policies to attract and retain customers in the competitive e-commerce landscape.

Retail
How To Succeed Where Many Ecommerce Sellers Fail After Q4

In the world of e-commerce, the Q4 holiday season brings the promise of big sales but also potential pitfalls if businesses don't focus on customer retention. While flashy promotions may boost gross revenue, the real success lies in keeping those new customers engaged and coming back beyond the holidays by prioritizing customer experience, conversion rate optimization, and retention marketing. [forbes]

Logistics
ShipStation & PULPO Join Forces to Skyrocket Ecommerce Success

ShipStation and PULPO have partnered to offer ecommerce businesses direct integration with PULPO's warehouse management systems, streamlining ecommerce operations and logistics. This collaboration provides ShipStation users with access to PULPO's automated order processing and enhanced inventory accuracy, while PULPO customers benefit from ShipStation's scalable shipping automation and discounted carrier rates, aiming to help merchants scale and enhance customer experiences. [eseller365]

Sustainability
How Ecommerce Stores Become Sustaibable

Consumers are increasingly concerned about sustainability, with 90% expecting businesses to act responsibly. For ecommerce, sustainability involves improving supply chains, using eco-friendly packaging and shipping, and supporting environmental causes. However, companies should avoid "greenwashing" or making false environmental claims to avoid negative consequences, as legal measures against this practice are being considered. [practical ecommerce]

Retail
Economy Expands, but Momentum Slows

NRF Chief Economist Jack Kleinhenz has noted that while the U.S. economy is still expanding, recent data indicates a slowdown in its momentum, with GDP growth adjusted for inflation estimated at 2.1% in the second quarter, down from the previously reported 2.4%. Despite this, retail sales showed surprising strength, rising 3.8% year over year in July, partly boosted by events like Amazon's Prime Day. However, inflation, reduced consumer confidence, and slowing wage growth pose challenges to the retail sector's performance, potentially leading to lower-than-expected sales growth for 2023.

Sustainability
NRF Acquires Reverse Logistics Association

The National Retail Federation (NRF) has acquired the Reverse Logistics Association (RLA), a global trade association focusing on returns and reverse industry. This move underscores NRF's commitment to sustainability in the retail sector, with a focus on promoting circular economy practices and enhancing supply chain sustainability efforts. RLA’s reverse logistics expertise will help NRF members ‘close the loop’ and accelerate the emergence of the circular economy.

Retail
Consumer-like Expectations Reshaping B2B Ecommerce

In a survey by BigCommerce, it was revealed that B2B buyers now expect a consumer-like online shopping experience, with 74% relying on online platforms and search engines for product purchases. Key pain points include inaccurate pricing and slow website load times during checkout, emphasizing the importance of modernizing B2B ecommerce operations to meet these evolving expectations.

| EVENTS

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