The digital age and the rise of social media have had a great effect on customer satisfaction and ultimately customer loyalty. Think about it.
When you scroll down your social feed, undoubtedly, you will be exposed to hundreds of products.
Some of these products you may love and adore, while others may be unfamiliar products that your friends use or are interested in. As consumers, the digital disruption has provided us with the opportunity to be alert to new and greater options constantly and the only factor differentiating businesses in a highly competitive marketplace is customer experience. In fact, in the US alone, $41 billion is lost in potential sales as a direct result of negative customer experiences.
While the digital age has inevitably resulted in some challenges, it’s also become a powerful asset for marketers. Recent studies carried out by MIT Technology Review discovered that brands who implement cutting-edge technology into their marketing strategies resulted in higher levels of customer satisfaction due to the ability to engage with consumers and meet their demands in a more efficient, relevant way. Ultimately, investing in technological solutions can lead to increased satisfaction amongst the digitally-savvy and omnichannel shoppers of today, leading them to come back for more.
Take the fintech company ‘Afterpay’ as an example. One study has revealed that the need for an efficient checkout is a defining factor for customer satisfaction. In fact, the Afterpay company was born after the discovery of alarming statistics in relation to the number of customers who did not proceed with online purchases. While this highlights the need for more resourceful payment solutions that benefit consumers, it also demonstrates the awareness customers possess in relation to competitor’s products.
Therefore, it is no surprise the Afterpay service, which allows merchants to offer their customers the goods right away whilst paying small instalments for the product, has gained significant traction in stores and on e-commerce sites. The buy now, pay later incentive that Afterpay offers is highly favoured amongst 450,000 consumers, allowing for frictionless purchases on items that may have been too expensive to even consider purchasing beforehand. The service also provides instant gratification to their consumers by shipping the product immediately, providing an innovative solution to the expensive and time poor lay-by service that is traditionally used. Consumers also have the added benefit of no interest rates or upfront fees, limiting the likelihood for accumulating debt via credit cards and loans.
So what does this mean for brands? Currently, the fintech brand has 2600 merchants who pay a fee to implement their service and is actually representative of 80% of Afterpay’s total revenue. While this fee is generally higher than those charged for accepting credit card payments, merchants cannot ignore the potential benefits that implementing the technology as apart of an overall integrated marketing strategy would provide.
Many brands have reported that embracing the Afterpay technology has positively impacted their sales. It has been reported that consumers who use the service spend up to 25% more than their non-Afterpay using counterparts and has resulted in increased conversion rates of 19-28% for retailers. Popular online fashion retailer Surfstitch, is one of many merchants to have implemented the Afterpay service as a part of their e-commerce marketing and advertising strategy. The company has identified that transactions using the technology outperform all their key metrics, including an increase of 52% in average order value. Meanwhile, the online retailer Princess Polly has achieved a 20% increase in overall sales, 60% increase in the average value of orders and an increase of 10% for conversion rates after offering the service to their consumers. Such statistics by retailers can be attributed to customer satisfaction, as customers are becoming more confident spending larger sums of money, more frequently with stores that offer the innovative and convenient service.
Particularly as the online market progresses and competition increases, customer satisfaction will become increasingly important. No longer does the product alone become a defining factor for committing to a purchase, while the extra value and convenience offered to consumers is often the make or break for retail relationships. Embracing innovative customer satisfaction technology that aims to facilitate the omnichannel shopping experience, such as new financial solutions, is imperative to continually please consumers and stay competitive in an overly crowded marketplace.
At RGC Advertising, we are a full-service online advertising agency based in Sydney, with expertise and knowledge about innovation in the e-commerce and digital spaces. To find out more about our digital marketing services, please contact Richard on (02) 8883 2988 or email firstname.lastname@example.org