Title: Keep your customers coming back: create loyalty through the post-purchase engagement
Retailers and brands need to reconsider the transactional relationships they have with their customers if they are to keep those customers coming back. Figuring out how to use post-purchase engagement to meet customers expectations and to create loyal customers is critical for creating a sustainable business.
Join Duncan Licence for insight into post-purchase loyalty, original research on consumer expectations and MetaPack’s plans in this space.
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#TDCGlobal 2019, MetaPack presentation, Duncan Licence, VP, Global Solutions and New Products, MetaPack
1. P O W E R E D B Y :
eCommerceandCustomerExperience
Stream
Keep your customers coming back: create loyalty
through the post-purchase engagement
DUNCAN LICENCE
VP, Global Solutions and New Products
2. Keep your customers coming back:
create loyalty through the post-purchase engagement
C O N F I D E N T I A L
4. CUSTOMER LOYALTY
IS THE RESULT OF A
CONSISTENTLY POSITIVE
EMOTIONAL EXPERIENCE
C O N F I D E N T I A L 4
5. CUSTOMER LOYALTY
IS THE RESULT OF A
CONSISTENTLY POSITIVE
EMOTIONAL
EXPERIENCE
C O N F I D E N T I A L 5
6. CUSTOMER LOYALTY
IS THE RESULT OF A
CONSISTENTLY POSITIVE
EMOTIONAL EXPERIENCE
C O N F I D E N T I A L 6
7. CUSTOMER LOYALTY
IS THE RESULT OF A
CONSISTENTLY
POSITIVE EMOTIONAL
EXPERIENCE
C O N F I D E N T I A L 7
8. C O N F I D E N T I A L
HOW DO YOU FEEL WHEN …
8C O N F I D E N T I A L
customer services seems like an
impenetrable fortress
9. C O N F I D E N T I A L
HOW DO YOU FEEL WHEN …
9C O N F I D E N T I A L
customer services seems like an
impenetrable fortress
10. C O N F I D E N T I A L
HOW DO YOU FEEL WHEN …
10C O N F I D E N T I A L
your order is late
11. C O N F I D E N T I A L
HOW DO YOU FEEL WHEN …
11C O N F I D E N T I A L
when a delivery driver is rude … or
worse still cards you when you’re at
home
12. C O N F I D E N T I A L
HOW DO YOU FEEL WHEN …
12C O N F I D E N T I A L
you have to jump through hoops in order
to return an unwanted item
13. C O N F I D E N T I A L
HOW DO YOU FEEL WHEN …
13C O N F I D E N T I A L
you are forced to wait a month
for your refund
14. C O N F I D E N T I A L
HOW DO YOU FEEL WHEN …
14C O N F I D E N T I A L
Would you be loyal to this experience?
15. C O N F I D E N T I A L
WHAT DOES IT TAKE TO DELIVER
A STAND-OUT CUSTOMER EXPERIENCE?
15
of consumers say they
would prioritise one online
eCommerce provider over
another because of its
loyalty programme.
of shoppers say they’re
planning to join a delivery
loyalty programme in the
coming 12 months.
of consumers say
they’re more than prepared
to pay a monthly fee if that
means securing unlimited
next-day delivery on all
their online orders.
of consumers would
be interested in a delivery
loyalty programme where
multiple retailers and
brands work together
to offer a premium
delivery service.
65% 49% 25% 19%
C O N F I D E N T I A L
16. C O N F I D E N T I A L
RETURNS –
BRIDGING THE EXPECTATION GAP
16
41%
of consumers say that they often or sometimes
purchase multiple products online knowing they will
return some or all of them.
56%
42%
of shoppers said an eCommerce
site’s returns policy had deterred
them from shopping with them.
reported finding it difficult to find
information about returns on an
eCommerce website.
of consumers say they frequently check an
eCommerce site’s returns policy before making
a purchase. A further 38% sometimes check
before they click ‘add to basket’.
35%
17. C O N F I D E N T I A L
RETURNS –
GETTING THE EXPERIENCE RIGHT
17
of shoppers said they would be
very likely to shop more on
ecommerce sites that made the
returns process easier.
32% 37%
of US shoppers would be willing
to pay more for a more
convenient or premium returns
option.
18. C O N F I D E N T I A L
TRY-BEFORE-YOU-BUY
A CONVENIENT SHOPPING EXPERIENCE
The bad news for eCommerce sites is that 54% of respondents would
not pay more to take advantage of this option.
18
66% 37%
of consumers admit that the convenience of
try-before-you-buy represents a big draw for
them.
of consumers said they anticipated try-before-
you-buy would reduce delivery costs on their
online orders.
21. RETURNS –
INTRODUCING
METAPACK
RETURNS
ENHANCING THE CUSTOMER DELIVERY EXPERIENCE
Combining pre-printed returns labels with a dynamic returns portal
• Create pre-printed labels at the point of pack linked to the
destination market
• Offer drop-off, collections, return to store for all deliveries
RAPID DEPLOYMENT
Use your existing MetaPack integration to create labels & integrate
orders easily to the Returns Portal
• Pre-built integrations to 26 order management platforms
• Integrated to more than 60 returns services with over 300k drop-off
locations
IN-COUNTRY WAREHOUSING AND CONSOLIDATING
OPTIMISES COSTS
Provide a local returns address in every market you ship to and
consolidate cross-border returns on your own schedule
C O N F I D E N T I A L 21
22. RETURNS PORTAL –
LAUNCH PROMOTION
For customers that sign-up before the end of May
MetaPack will:
• Waive the Returns Portal subscriptions for three months
• Provide a free consultancy session on your returns
offering, choice of returns carriers and consolidators and
the rates you’re paying
C O N F I D E N T I A L 22
TALK TO YOUR ACCOUNT MANAGER OR REGISTER
YOUR INTEREST ON THE METAPACK WEBSITE.
Good afternoon everyone
My name is Duncan Licence, I am the VP for Product at MetaPack. I am responsible for MetaPack's retail product offering, including; Delivery Options, Delivery Manager, Returns and Reporting
Today I am going to talk about how we at MetaPack think about loyalty, MetaPack’s original research in this space and then share our vision for a compelling post-purchase experience.
Ref: https://www.shutterstock.com/image-photo/bird-eyes-view-talad-rod-fai-289432139?src=library
For the retailers in the room, I am wondering how many of you make a margin on the first sale to a new customer? Typically most of you don’t, it takes up to three sales to a new customer for a retailer to make a margin. How is this sustainable in a world of transparent pricing, open marketplaces and shifting consumer loyalty?
In many ways Amazon is a customer loyalty machine. They are rated #1 by consumers in almost every market that they operate in. A significant portion of Amazon costs are geared towards acquiring and retaining customers. Consider their costs:
Amazon invest heavily in advertising and sponsorship
They invest in Promotions & deep discounting, which is what most people assume the Bezos quote above refers to.
The Amazon loyalty program, Prime; which includes delivery, music and video services is an incredibly expensive customer acquisition strategy but also keeps customers coming back more and more frequently
Free Returns for many products is an expensive way to keep customers coming back
Amazon’s foray into stores and the purchase of Whole Foods could be considered as customer acquisition … this isn’t a new trend, how many other consumer brands are analysing rent as a marketing expense to drive online sales
And yet Amazon’s retail business (i.e. not AWS) made over $1bn in 2018. How is this possible? Simply put, it’s the frequent repeat purchases of loyal customers means that their investment in customer acquisition and retention is worth it. The life time value of an Amazon customer is higher than almost all other retailers.
I think Bezos’s famous quote is about more than just undercutting on price … Amazon’s opportunity is continues to be the loyalty of it’s customers. It is this loyalty that created the Amazon flywheel.
Reference:
https://www.forbes.com/sites/stevendennis/2017/08/31/unsustainable-customer-acquisition-costs-make-much-of-ecommerce-profit-proof/
https://twitter.com/benedictevans/status/989446983831113730
https://image.shutterstock.com/z/stock-photo-alarm-clock-on-the-palms-black-and-white-version-concept-value-of-time-lost-time-1303769527.jpg
So what is loyalty … it varies but I like this definition
Customer loyalty is the result of consistently positive emotional experience
Let’s break this down
Reference
https://beyondphilosophy.com/customer-experience/customer-loyalty/
Loyalty Lists
https://www.marketingcharts.com/brand-related/top-brands-105711
https://brandkeys.com/wp-content/uploads/2018/09/2018-Loyalty-Leaders-Top-100-List.pdf
https://www.bluleadz.com/blog/brand-loyalty-20-brands-with-a-cult-like-following-what-you-can-learn-from-them
https://consumerbrandbuilders.com/7-factors-effect-customer-loyalty/
A consistent experience is essential if you want to keep customers coming back. A little like trust loyalty is difficult to gain but very easy to lose.
Consumers are people of habit … if they get a text message notifying them of a refund for their first return they expect it every time and are disappointed if it doesn’t happen.
We all get used to things working in a certain way and if they go wrong we're annoyed and increasingly will look elsewhere.
Feeling good about a retail experience can come in many guises:
Meeting a store clerk that was genuinely engaged in the conversation and smiles warmly
Feeling like you are getting something tailored and unique
Joining a community
A frictionless sales process, which is simple and intuitive
Telling your friends about an awesome product or service
There’s a lot of talk about the retail experience but too often we focus on the individual building blocks of this experience; in-store, online, customer services, etc. Too little attention is paid to the holistic consumer journey. However, this is how consumers experience retail.
Think about a retailer that you love. They have a great product, at the right price but they also give you consistency, they make it convienient and they may even make you feel special.
How would you feel when …
You’re trying to deal with an issue and customer services seems like an impenetrable fortress
You have no idea when your order will arrive
your order is late and the retailer doesn’t even seem to know where it is
when a delivery driver is rude … or worse still cards you when you’re at home and you have no easy way to feedback to the retailer or brand
you receive a massive parcel with a tiny product, wrapped in void fill
you have to jump through Kafkaesque hoops in order to return an unwanted item
you are forced to wait a month for your refund
How would this make you feel … would you be loyal?
Too often the experience we give consumers is inconsistent and unintuitive.
Ref:
https://www.shutterstock.com/image-photo/bird-eyes-view-talad-rod-fai-289432139?src=library
https://www.shutterstock.com/video/clip-23464516-high-view-colorful-tent-retail-shop-night
How would you feel when …
You’re trying to deal with an issue and customer services seems like an impenetrable fortress
You have no idea when your order will arrive
your order is late and the retailer doesn’t even seem to know where it is
when a delivery driver is rude … or worse still cards you when you’re at home and you have no easy way to feedback to the retailer or brand
you receive a massive parcel with a tiny product, wrapped in void fill
you have to jump through Kafkaesque hoops in order to return an unwanted item
you are forced to wait a month for your refund
How would this make you feel … would you be loyal?
Too often the experience we give consumers is inconsistent and unintuitive.
Ref:
https://www.shutterstock.com/image-photo/bird-eyes-view-talad-rod-fai-289432139?src=library
https://www.shutterstock.com/video/clip-23464516-high-view-colorful-tent-retail-shop-night
How would you feel when …
You’re trying to deal with an issue and customer services seems like an impenetrable fortress
You have no idea when your order will arrive
your order is late and the retailer doesn’t even seem to know where it is
when a delivery driver is rude … or worse still cards you when you’re at home and you have no easy way to feedback to the retailer or brand
you receive a massive parcel with a tiny product, wrapped in void fill
you have to jump through Kafkaesque hoops in order to return an unwanted item
you are forced to wait a month for your refund
How would this make you feel … would you be loyal?
Too often the experience we give consumers is inconsistent and unintuitive.
Ref:
https://www.shutterstock.com/image-photo/bird-eyes-view-talad-rod-fai-289432139?src=library
https://www.shutterstock.com/video/clip-23464516-high-view-colorful-tent-retail-shop-night
How would you feel when …
You’re trying to deal with an issue and customer services seems like an impenetrable fortress
You have no idea when your order will arrive
your order is late and the retailer doesn’t even seem to know where it is
when a delivery driver is rude … or worse still cards you when you’re at home and you have no easy way to feedback to the retailer or brand
you receive a massive parcel with a tiny product, wrapped in void fill
you have to jump through Kafkaesque hoops in order to return an unwanted item
you are forced to wait a month for your refund
How would this make you feel … would you be loyal?
Too often the experience we give consumers is inconsistent and unintuitive.
Ref:
https://www.shutterstock.com/image-photo/bird-eyes-view-talad-rod-fai-289432139?src=library
https://www.shutterstock.com/video/clip-23464516-high-view-colorful-tent-retail-shop-night
How would you feel when …
You’re trying to deal with an issue and customer services seems like an impenetrable fortress
You have no idea when your order will arrive
your order is late and the retailer doesn’t even seem to know where it is
when a delivery driver is rude … or worse still cards you when you’re at home and you have no easy way to feedback to the retailer or brand
you receive a massive parcel with a tiny product, wrapped in void fill
you have to jump through hoops in order to return an unwanted item
you are forced to wait a month for your refund
How would this make you feel … would you be loyal?
Too often the experience we give consumers is inconsistent and unintuitive.
Ref:
https://www.shutterstock.com/image-photo/bird-eyes-view-talad-rod-fai-289432139?src=library
https://www.shutterstock.com/video/clip-23464516-high-view-colorful-tent-retail-shop-night
How would you feel when …
You’re trying to deal with an issue and customer services seems like an impenetrable fortress
You have no idea when your order will arrive
your order is late and the retailer doesn’t even seem to know where it is
when a delivery driver is rude … or worse still cards you when you’re at home and you have no easy way to feedback to the retailer or brand
you receive a massive parcel with a tiny product, wrapped in void fill
you have to jump through Kafkaesque hoops in order to return an unwanted item
you are forced to wait a month for your refund
How would this make you feel … would you be loyal?
Too often the experience we give consumers is inconsistent and unintuitive.
Ref:
https://www.shutterstock.com/image-photo/bird-eyes-view-talad-rod-fai-289432139?src=library
https://www.shutterstock.com/video/clip-23464516-high-view-colorful-tent-retail-shop-night
How would this make you feel … would you be loyal? Does this sound like an positive emotional experience?
Too often the experience we give consumers is inconsistent and unintuitive.
Ref:
https://www.shutterstock.com/image-photo/bird-eyes-view-talad-rod-fai-289432139?src=library
https://www.shutterstock.com/video/clip-23464516-high-view-colorful-tent-retail-shop-night
So what do consumers say they want?
The MetaPack consumer research surveyed thousands of consumers in Europe and North Amercia on all aspects of delivery and post-purchase.
What is clear is that consumers loyalty is driven by the whole retail experience.
Loyalty programmes hold a strong consumer appeal. 74% of consumers would like the eCommerce websites they use regularly to provide a delivery loyalty programme. Unsurprisingly, consumers have high expectations when it comes to delivery loyalty programmes. But once subscribed, the frequency with which they place orders is likely to ramp up significantly:
Consumers expect returns to just work.
They know how to sniff out a poor experience … the sneaky asterisk are the end of “Free Returns” on your website, the short returns periods, the overly complex returns form or the slow-moving returns queue buried at the back of the store.
Almost a third of consumers said that they would be more loyal to retailers that simplified the returns process.
Interestingly US consumers were most satisfied with their local returns offering and were willing to pay for a more convenient returns option.
I like the try-before-you-buy trend because it is the natural conclusion of the choice and convienience push that MetaPack has been at the forefront of for the last 20 years.
US retailers like Stichfix have try-before-you-buy baked into their business and operating models. You receive a number of items each month and return everything that doesn’t fit and that you don’t like. You only pay for what you keep. Stichfix employ an army of machine learning experts to reduce their returns rates. The goal is to predict their customers preferences so perfectly that they don’t get any returns.
Interestingly consumers don’t want to pay extra for this service.
Another way of looking at is to understand that consumers expect returns should be free!
Ref:
https://hbr.org/2018/05/stitch-fixs-ceo-on-selling-personal-style-to-the-mass-market
You all know how to win with the outbound customer delivery experience. You have all obsessed about how to offer choice, convenience and certainty in delivery at scale. We’ve been on the journey together from one to many carriers, to next day as standard, PUDOs and click and collect and international expansion.
This same obsessive focus will serve you well when you apply it to post-purchase. To reduce friction, improve engagement and create a joined-up, holistic experience that matches the outbound experience you’ve created. You will need to choose tools that give consumers choice and execute at scale in many markets and cross-border.
It’s odd to me that our customers have not yet asked me to build Delivery Options for returns, that we haven’t yet been asked to add customer engagement data to our already deep understanding of customer preferences and carrier performance. The next few years will see this change as the battle for customer loyalty moves to retention through choice and convenience post-purchase.
It’s no secret that MetaPack has put the global expansion of our customer and carrier base ahead of developing our post-purchase feature-set. Despite this, MetaPack are better positioned that anyone to create the experience we know consumers want. The scalability and performance of our platform, our 450 carrier integrations, the long experience producing Delivery Manager & Delivery Options mean that we have already built the foundations for a compelling post-purchase experience.
Ask yourself:
How many carts are abandoned because you don’t have a returns policy that meets the consumers needs?
How many customers leave you because they’re dissatisfied with their post-purchase experience?
Which gaps your user journey cause the most dissatisfaction… or is it that the building blocks don’t quiet join together seamlessly?
Could you international business growing more quickly if you offered locally competitive returns.
Post-purchase is worth the investment because it will increasingly be the yard stick that consumers use to decide who get’s their loyalty.
Ref:
https://www.shutterstock.com/image-photo/happy-saleswoman-greeting-customers-welcome-our-1296638962
https://www.walkerinfo.com/knowledge-center/featured-research-reports/customers-2020-a-progress-report
Today I’d like to share our vision for the next iteration of post-purchase, which we believe will help retailers create the ”consistently positive emotional experiences” we know consumers crave.
We want to help you delight and engage your customers post-purchase by:
Extending your brand to every aspect of the delivery and returns experience, regardless whether it’s tracking data, notifications or returns. It’s not okay to lose control of your communications to your customers after the parcel leaves your warehouse.
We want you to engage your consumers to better understand their preferences and experience. If you don’t give your customers an avenue to share feedback and manage exceptions then they will do it on twitter or Facebook.
We want you to give consumers the choice and convenience in the post-purchase space in much the same way you've done through Delivery Options. There is no one-size-fits-all in post-purchase communications and returns just as there isn’t in outbound shipping.
We want to make the post-purchase a Frictionless Consumer Experience
With MetaPack you have everything in one place … why maintain a number of point solutions for returns, tracking, notifications and customer interaction? They don’t integrate into each other and usually only work in one channel. Consumer’s expect a consistent experience regardless of the channel.
And making sure you can Scale your business Sustainably is critical:
Winning and retaining customers is only half the battle, you need to do it in a way that means the cost to serve them doesn’t cripple you. Cross border returns is probably the most pressing illustration of this.
Scaling internationally is challenging. MetaPack has helped you navigate this for the outbound journey and we now plan to help you create a localised post-purchase experience. This means that you meet the unique needs of every market you ship to and control the costs of providing returns and customer engagement.
So on a functional level what does this mean …
Today I plan to talk to you in more detail about how we plan to bring together the various elements of our returns proposition into one seamless product MetaPack Returns.
Later this year we will launch the next iteration of our post-purchase engagement platform, which will bring together tracking, carrier communications and customer engagement at a global scale.
Early next year we expand our current communications offering to include customer preferences, pro-active alerting for customer services and new communications channels.
So, let’s talk about the launch of MetaPack Returns!
MetaPack Returns offers the capability to provide a combination of pre-printed returns labels, a branded returns portal and an international returns solution. This unique combination of services gives retailers control of their returns offering. It gives visibility of their returns activities whilst ensuring the consumer has choice and flexibility.
Pre-printed returns labels, which we believe is still the most convenient option for consumers. Using your existing integration to MetaPack you can request either domestic or international returns labels at the point of pack for inclusion with the outbound product.
In partnership with ZigZag, we are launching a branded returns portal, which will give consumers to option of requesting a return dynamically through a portal. The portal will allow consumers to return items with ease, by post, collection, store or drop-off locations. MetaPack Returns enables fast refunds and a great customer experience that increases loyalty and repeat sales.
Our international returns solution that give retailers local returns addresses in every market they ship to and also allowing for consolidation of cross-border returns, which will reduce costs
MetaPack returns is the first fully integrated multi-channel returns solution, giving retailers visibility and control over their returns process and providing consumers with choice and convenience.
The business of retail is changing faster now than at any time since the industrial revolution … and I expect that this pace of change will continue to accelerate.
However, there are some things that never change. Consumers want the same fundamental things they always wanted. For many of them Amazon is seen as the standard-bearer of the online customer experience.
MetaPack is the only provider able to provide you with a single platform to create a compelling post-purchase experience and this means that your margin is my obsession.
Thank you!