Last week we chatted to you about key priorities, returns, and Google Shopping. This week we’re going to fill you in on the state of mobile traffic, the real cost of free returns, and consumer happiness. Enjoy!
Mobile Traffic At All Time High
Did you know that mCommerce traffic in the UK made up for 65% of all total eCommerce traffic in January? That’s the highest figure for any country studied in the March 2016 SimilarWeb report. This is significantly larger in the UK than France, Russia and Brazil at 35%, 23% and 33% respectively.
Even though mobile traffic is dominating, desktop still offers more page views per visit. For example, the average page views for desktop in the UK are 13.6 while mobile is only 7.6. This pattern continues in the examination of time spent on digital retail websites also. The average time spent on digital retail sites via desktop is clocked at 7.5 minutes and just over 5 minutes on mobile.
The True Cost of Free Delivery
As you know there’s rarely such a thing as a free lunch, but in the UK we’re still pretty spoilt for choice. Data from the September 2015 retail law specialist DWF revealed that free delivery is a primary shipping or fulfilment option considered by the UK’s retail executives (57%). Unfortunately, free delivery is becoming less of a viable option – even for click and collect options. Most retailers charge for delivery if the online order value thresholds are not met and even more are beginning do adopt a similar stance on click and collect services. It’s not really surprising given the costs involved.
Retail consultancy firm Kurt Salmon for Retail Week published that delivery of online business is costing UK supermarkets roughly £300 million a year. High omni-channel fulfilment costs will be dealt with by raising minimum order values (i.e. raising the threshold for free home delivery) and on click and collect orders. In the UK, Tesco and John Lewis have fallen to this tactic most notably.
Sephora’s Augmented Reality Shopping Experience
We love hearing about the latest gadgets from retailers and we’ve discovered a fascinating one this week. Sephora is bringing real time 3D facial recognition to their existing Visual Artist feature on their website and app. The feature is predicted to boost conversion rates due to its accurate facial tracking and rendering.
Their current augmented reality feature allows users to upload a still selfie and virtually apply products from Sephora, however the new update will enable consumers to view themselves in motion. The update comes from developer ModiFace. “We believe the ability to see yourself with products on can impact sales online,” Parham Aarabi, CEO of ModiFace says. “We now have significant data and test cases to back this up”.
Augmented reality seems to be a hit with retailers recently and they appear to be combating the concerns of online purchasing pretty well. Although the ideas can drive sales for beauty retailers, if the technology doesn’t live up to its name – neither will sales. Now, the more mobile apps incorporating live 3D movement, the more outdated uploading a still selfie will become. After all, if Snapchat can do it, why can’t retailers?
Design Tips to Increase Consumer Happiness
Digital Intelligence Today came up with 10 simple design intervention tips to promote customer happiness. Inspired by Pieter Desmet and colleagues at the Deft Institute of Positive Design, they created a mash up of design thinking and positive technology to give us some ideas on what they believe to be “positive design”. We picked out our favourite 3:
- – 3GT – 3 Good Things. It’s a simple and clinically validated way to feel happier. Each night before you go to sleep you’re supposed to think of 3 positive things that happened that day and ask yourself why. Positive design, much like the psychology, can focus on positive outcomes and increase the chances of them happening.
- – Gratitude Letter – Experience a service or product first-hand on your own. Later, write a short “thank you” note to the designer of the experience and explain your gratitude, focussing on why you’re pleased with it. It helps to do this even if you aren’t particularly happy with it, since finding positive aspects can build resilience.
- – Sensory Stimulation – Check out what’s happening now and go out there and feel it for yourself. Focus on the sensory dimensions of the experience. What does it feel like to to see, hear, taste, smell and touch these things? How would you redesign it to be more pleasurable?
The recurring theme with this lot seems to be that traditional observation no longer cuts it. To understand how to improve your design or products you simply need to go out there and be a customer yourself – but with an open mind and a positive attitude.
eCommerce Product Return Rates
Let’s do a quick statistic roundup of eCommerce return rates shall we? Who doesn’t love fresh stats?!
- – At least 30% of all products ordered online are returned, compared to the 8.89% returned to brick-and-mortar stores.
- – Just under half (49%) of retailers offer free return shipping.
- – 62% of shoppers are more likely to shop online if they can return an item in-store.
- – 23% of people return their products because they received the wrong one, 22% because the product received looks different and 20% because it was damaged. The rest, for other reasons.
- – Almost half (47%) of shoppers want an easy-to-print return label.
- – 92% of consumers will buy something if it’s easy to return, whereas 79% of them want free return shipping.
- – Most shoppers will check the returns page before buying anything from you. (67%)