Online customer more discerning |
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| Wednesday, 01 October 2008 | |
 According to a study conducted by PayPal, online retailers are hoping to lure frustrated customers with more than just bargain prices. The study uncovered retailers' insights into customer behaviour to discover the future of online sales is no longer just about value and choice. Customers are
increasingly more discerning and now demanding the same, if not higher, levels of experience and service they would on the high street. Site speed, accessibility, after sales service and even the ability to exchange goods are all important factors as retailers look to maximise sales.
The research forms the first stage of a major PayPal study looking at trends, issues and insights in online shopping, to be rolled out in the coming months. PayPal is the UK's preferred online payment brand and has a customer base of over 20 million online shoppers, which represents one in every three British shoppers. PayPal is a payment option on over 120,000 retailers' sites across Europe. In general, retailers felt that an online retailer must offer a complete experience, from first click to delivery of goods, when trying to encourage customers to return to their site; however, top considerations included fast delivery times and strong after sales service. The majority (68%) of large retailers felt that cost and wait times for delivery were the biggest frustration for shoppers. This was in large contrast to SME's with only 26% of smaller retailers identifying issues associated with delivery as a big frustration. Customers' lack of confidence in after sales service (47%) also featured strongly, and 39% felt that long online checkout processes caused major customer frustration. “We see our e-tailer customers grasping the opportunity to bring back customers for repeat purchases with better after sales service and shopping experience. This, combined with secure payment options, creates real brand loyalty online and is contributing to increased sales.” Perhaps unsurprisingly, 67% of the retailers polled said that security concerns remain the biggest worry for the online shopper. Image: Online payment |
These findings come from new research unveiled by online payment provider PayPal, conducted in partnership with providers Venda, the European market leader for eCommerce solutions, and RomanCart. More than 250 online retailers were surveyed, including larger e-tailers like Monsoon, as was reported in the Retail Bulletin.
