Our Weekly Roundup last week brought you Marketing Tools, Email and Facebook! This week we’ve got quite the eclectic mix for you, with news on customer experience and what it actually means, millennial trends, social commerce functions, conversion and more. The latest in eCommerce news and tools.
The Difference Between Younger and Older Millennial Shoppers
The key difference between younger and older millennial shoppers is that the older bracket spend more. The Bureau of Labor Statistics 2014 data shows that 25-34 year olds spend on average $17,368 more than households headed by under 25s. Younger consumers spend significantly less in areas such as healthcare, furniture, entertainment and pets. The main reason behind this is that tight finances are holding millennials back. According to a Navient poll, 51% of them are worried about paying their monthly bills.
An interesting statistic regarding millennials according to Cone Communications is that 92% of 18-24 year olds and 91% of 25-34s claim they’re more likely to switch to a brand that’s associated with a good cause. This purchasing behaviour reflects the ideals of the generation, those being that “people can solve things by working with brands and not against them”. eMarketer has shown that 73.2% of the younger millennials are digital buyers compared to the 71.6% of the older bracket.
3 Vital Social Commerce Functions Explained
Source: Gilles Lambert
There are three specific functions in social commerce that you need to be fully clued up on. These include purchase sharing, refer-a-friend and social rewards.
Post purchase sharing integrates social into the buying journey. Did you know that between 10 and 30% of all social sharing is sharing purchasing? According to ShopSocially each post can generate up to 5 referrals. They goes on to suggest that if website managers embedded the resulting product stories on the product’s page, conversion rates can go up by 17%. Pride of ownership is what appeals to consumers when it comes to purchase sharing.
Closely related to social rewards and purchase sharing, this allows etailers to increase customer acquisition using existing customers through word of mouth. Providing incentives for both parties – the “referred” and the “referrer” – allows owners to leverage existing customers with word of mouth advertising that is not only more likely to convert but the referred are far more likely to spread the word also. By using social trust, etailers can benefit as well as the customers engaging with the incentive.
These increase word of mouth and social sharing by incentivising social actions. Social actions include sharing the company’s product or page most typically. When they share your site your UVP will be put right in front of that customer’s friends and, depending on their privacy settings, friends of friends. Main incentives for social sharing are some type of discounts, coupons or other rewards. According to AddShoppers social rewards boost sharing by over 300% and decrease cart abandonment.
Source: Practical eCommerce
3 Calling Cards of Conversion Leaks on Your eCommerce Site
Everyone’s conversion rates suffer from time to time, but here are 3 we want you to double check on. These points could be where your conversion is leaking.
The Use of Expired Promotion Codes
It’s important that you keep an eye on the expiry dates of your coupons. In the event of your customer trying to use an expired coupon at no fault of their own, consider allowing them to use it anyway or email them a new code as an apology for the error. Addressing this with your consumer and trying to rectify your mistake improves your customer loyalty.
Low Repeat Customer Count
If you get plenty of new customers but no one seems to come back, you’ve got an issue somewhere. Unless your business specifically caters to one time buyers, a low repeat customer count is the calling card for your site not offering the right types of products. Or a poor customer experience. If you want to get your repeat customer count on the up, make sure you take care of loyal customers. They need to feel valued – make an effort.
Customer Service Queries
You should feel lucky the customer has even bothered to make an enquiry and hasn’t gone elsewhere already. If you’re getting a lot of questions then you’re not being clear about your buying process or some other terms on your website. Resolve issues immediately and make sure they’re permanently fixed. Also monitor call wait times and email response times – no one likes waiting and your help will be a lost cause if you don’t act fast.
Source: Practical Commerce
‘Improving Customer Service’: What Does It Actually Mean?
This seems to be an umbrella term for a lot of different strategies. What does improving customer experience mean and what exactly are companies improving about it?
According to Econsultancy’s Quarterly Digital Trends Briefing, there are a few aspects companies are looking to improve this year. They asked 2,179 companies and 1,893 agencies where they were placing the highest emphasis in terms of improving customer experience. The most important thing respondents are keen on doing is “making our experience as personalised and relevant as possible”, with 25% of companies and 27% of agencies looking to do this. Second to this is “making our experience as valuable as possible”, and third “making our experience as easy to understand as possible”.
Personally we think this means different things to different companies. Consider what the most important part of your buying journey is and consider how you can make this even more pleasurable to go through. What matters most to your customer in terms of service?
For me on what’s considered the most valuable in improving CX, head on over to eConsultancy.
Progress Indicators on eCommerce Checkouts Are Essential
There is nothing that bores us more as consumers than a seemingly endless checkout process. People like to know where they are and where they’re going. For instance, right now I’m at home in my slippers drinking tea. Knowing where I am is making me feel all snug, warm and relaxed. It’s for the same reason that progress markers are so important! Let us break it down:
- – Global cart abandonment rates hit 74% last year – that’s a massive amount of people jumping ship.
- – UPS found that 20% people abandoned their carts because the checkout process is confusing and lengthly.
- – It was also found that 27% of people leave because of time restraints.
We can solve the second two with a progress bar. People have a clear idea of what they’re getting into and how long it may take. Obviously Spot Studio recommends the obvious – make the checkout as short as possible [Ed. Note: obviously!]. But in the event you want to include that progress bar, then make the wording simple, the design bold and clearly visible.