Retailers failing to understand the online experience despite the demise of brick and mortar
by Eggy, on Oct 18, 2019 10:46:07 AM
Eggplant survey identifies a digital disconnect with 60% of retailers not measuring customer churn
London, Boulder, 3 October 2019: A recent survey of retailers commissioned by Eggplant, the digital experience specialist, revealed the pressures facing ecommerce teams in the run up to the holiday shopping season. According to the findings, almost every retailer (95%) recognizes the importance of evaluating how the user experience impacts business outcomes. However, despite the importance of delivering an omnichannel experience that delights, 60% fail to measure customer churn - even though 30% have an average drop off rate of 50% or more on online properties.
With the continued shuttering of stores retailers are focused on capturing the ecommerce opportunity. Eggplant’s survey, carried out among 500 digital and IT teams in the retail sector across the US and UK, identified that 35% of organizations are now maintaining five or more digital channels. This pressure will intensify as brands are set to release on average 20% more digital products and apps in 2019 compared to 2018. In the US, 46% of retailers will release over 11 products or apps this year (compared with 30% in the UK). Ninety-five percent state this is an increase from last year and 87% believe this trend will increase in 2020 (compared with 75% in the UK).
US and UK retailers are clearly investing heavily in technology to drive better customer experiences, with 92% of respondents measuring the user experience via business outcomes such as customer growth (74%), company growth (71%) and revenue growth (65%). Of the 40% measuring customer churn, they believe drop off rates are due to site navigation (51%), site functionality (48%), and site performance (47%).
Organizations are turning to technology innovations to help improve the digital experience and are integrating live chat (46%), native mobile apps (46%), and front-end web technologies (45%). Over a third of retailers (34%) are looking to incorporate AI to improve the digital experience for customers with 70% already deploying AI to test software and applications.
Quotes and commentary
“As brick and mortar-centric strategies continue to struggle, retailers recognize the importance of focusing on business outcomes when it comes to the digital experience they are delivering. However, retailers can’t afford to ignore why consumers are leaving their online properties and risk a digital disconnect, particularly in the race to prepare for the holiday shopping season. It’s encouraging that brands are embracing AI and other new technologies in the quest to deliver a rich omnichannel experience that delights. The future looks bright for retailers that are fully committed to digital.”
Dr John Bates, CEO Eggplant