78% of UK Consumers unlikely to buy from a retailer again after a negative delivery experience, finds new report
New research from ShipEngine and ShipStation has indicated that negative delivery experiences can have a major impact on customer loyalty, with 78% of UK consumers stating they are not likely to shop with a brand again following a below par experience.
The survey, entitled Exploring the Nuances in Ecommerce, also found that 71% of UK consumers rank ‘high shipping costs’ as the biggest barrier to becoming repeat customers.
Looking at customer loyalty drivers, the quality of delivery experience ranks as the third highest driver, with 51% of UK consumers surveyed citing it as a key reason why they regularly buy online from the same brand. Only affordable prices (1) and product quality (2) rank higher for UK consumers. Merchants agree on the importance of product quality (1) and delivery quality (3) as customer retention drivers, but disagree on the topic of affordability, ranking it as only their fourth most important retention driver.
When it comes to delivery options, the survey found, consumers can be unforgiving. Almost 85% of UK consumers state that a lack of adequate delivery options can influence whether they abandon their cart at the online checkout. Looking at this further, over 61% of consumers state they will sometimes abandon their cart and 23% indicate they will quite often or always abandon their cart if their desired delivery option is not offered.
In contrast, over 26% of UK merchants surveyed believe a lack of delivery options offered at the checkout ‘never’ prevents consumers from finalising their purchase.
Tom Forbes, SVP of Enterprise Revenue at Auctane, ShipEngine and ShipStation’s operating group: “In today’s age of overwhelming choice, it’s never been easier for consumers to switch where they buy from. Unsurprisingly, in this environment, it’s never been more difficult for retailers to retain customers.
“There is no one right approach when it comes to running a successful ecommerce business, but as our new research highlights, the key is to understand how different consumers shop, where they shop and to learn their negotiables and non-negotiables. Only then can you get a clearer picture of how to turn potential consumers into repeat customers.
“As the online shopping experience has become synonymous with the delivery experience, consumer expectations have risen. Just one negative delivery experience can sour consumer perception of a brand and have a detrimental impact on their bottom line.
“The ecommerce market today will favour those who understand the opportunities and make the necessary investments in areas such as their delivery experience, omnichannel proposition and marketplaces. Those who don’t, will find life very difficult.”
The report was based on a survey of over 3,000 consumers and 600 online merchants across six markets. Click here to access the guide.
