Some good news at last! GfK NOP Consumer research reports that UK consumer confidence measures rose by five points in March. It’s a major jump back up to confidence levels not seen since last May. So let’s hope consumers start to show their restored faith by spending their hard earned cash on the high street and across the internet over the next few months.
And retailers really need the surge in spending. Since the autumn we have followed the demise of a broad spectrum of retailers and large brands operating on the high street and the web, not to mention the countless smaller retailers across our towns and cities.
Obviously, access to funding in the current climate has played its part but also the marketing strategies of many have been called into question.
Last Christmas saw an unprecedented 16% swing by shoppers off the high street and onto the web. Driven probably by the impression that shopping online was cheaper – yet is it really more convenient?
Many consumers still get a poor service online because many successful high street retailers have not emulated their retail experience to online trading. I’m a director of a digital marketing agency and we have a lot of experienced retailers on our team. One of our greatest assets is that we know how stuff should be presented to a consumer. Whether trading online or offline, retailers need to follow a lot of traditional rules.
Yet, how come so many get it so wrong?
Many retailers think because they can’t see the whites of the eyes of their customers it’s an excuse to offer poor service. Yet through evaluation of our clients’ websites and analysing where clients pull out of a transaction, the customer service element of the e-mix is really important to drive sales.
Firstly, postage and packing costs are the biggest turnoff when customers get to checkout. In their head they are thinking the item cost is say £20. Add on an additional £5.00 post and packing cost at the end of the transaction and the customer thinks the cost of the product has just shot up by 20% and it’s not the value item they thought it was before. Yet, it’s so easy to include the P&P cost in the original product cost and promote it as being free.
Secondly, a no quibble returns policy. This is really a no-brainer. Buying online a consumer needs to be given confidence. The more bespoke the product, or if it’s a clothing item, the more important it is to build confidence that the item can be easily returned if it is not suitable. This means free post returns, a returns slip and providing suitable return packing. More importantly include the cost in your margin; aim to reduce returns through proper descriptions and good quality photography. Forget the odd return, you are already pounds ahead.
Thirdly, communicate with your customer. There should be more besides the invoice and the product in the package. Include a gift card perhaps, a guarantee or personal communication to your customer and a paper catalogue. Evidence suggests internet sales’ rates increase when websites are supported with a traditional paper catalogue. This is known as the ‘flick to click’ principle.
Our philosophy at Numo Group is to support online retailers properly. Our sites are proven systems that can be as bespoke and flexible as your own business model. We ensure the features suit customers’ needs and we build back office infrastructure around proven retail marketing theories that work for the business. Unlike out of the box software, the e-commerce features we develop for business actually make it out of the box and make a return for the business.
