At the heart of e-commerce success lies the customer experience. What level is your online store at, and how can the customer experience be improved?
The relationship between customer experience and successful business outcomes has been extensively researched. To summarise, customer experience is the most significant factor that enhances competitive advantage:
Companies offering excellent customer experience grow 4-8% faster than their competitors (Bain & co)
Excellent customer experience = higher purchase frequency, higher average transaction value, lower customer acquisition cost (Peppers, Rogers)
Excellent customer experience boosts customer trust → Trust increases customer retention and active recommendations (Edelmann 2019)
What does an excellent customer experience mean in the context of e-commerce?
Customer Experience and Competitive Advantage in E-commerce
We broke down the e-commerce customer experience into concrete terms and divided it into three different levels based on our perspective:
Basic Level of Customer Experience
The basic level of customer experience is, in our view, the ticket to market entry in terms of competitive advantage; falling below this level means competitors already have a significant head start.
The basic level of customer experience in e-commerce:
Criterion | Practically Means: |
Functional multichannel and SEO-optimised online store | Device-independent implementation (often focusing on mobile experience), ongoing SEO work |
Variety of payment methods | Customer-oriented selected payment methods: mobile payments are highlighted in trends |
On-demand customer support using automation and service representatives | Customer support 24/7/365 – in some way. Building own support around the customer journey. |
Excellent product search | Suggestive search, visual and categorised results, filters, personalisations, recommendations (see AddSearch) |
Fast delivery | Customer-oriented selected delivery methods |
Up-to-date and accurate product information | PIM or other suitable system for managing product information |
Good Level of Customer Experience
At a good level, the e-commerce store offers a better experience in several aspects of customer experience than its competitors, thus creating a competitive advantage.
Criterion | Practically Means: |
Brand stories and useful content | Articles, videos, podcasts, content collaborations, and networks that entertain and benefit the customer |
Transparent responsibility | Visibility of responsibility throughout the online store: on the homepage, in product information, at checkout, and in delivery and payment options |
Enriched product information | In addition to text, videos (product demos, reviews, detailed insights, related content), diverse images, accurate technical details, guides, and instructions |
Store-specific inventory information | Accurate stock details (online store inventory, store-specific stocks) |
Accessibility in order |
Excellent Level of Customer Experience
An excellent level of customer experience leaves a significant positive impression on the end customer, increases trust in the e-commerce store, and encourages the customer to actively recommend the store to others.
Criterion | Practically Means: |
New ways to experience products | Augmented Reality/Virtual Reality/360/3D models (see for example Sketchfab) |
Personalised e-commerce experience | Content and product recommendations personalised based on customer data |
Social shopping | Group discounts, leveraging social media for direct purchases |
Seamless brick-and-mortar + e-commerce experience | The best possible product information online, real-time stock and store inventories, shelf information in the online store, utilising the online store in physical stores |
Customised features based on customer understanding | Continuous accumulation of customer insights through research, meeting specific customer needs with, for example, customised purchase paths, product selectors, and unique additional services |
Which level does your online store fall into? Would you like assistance in elevating your online store's customer experience to the next level?
Submit a contact request and we will get back to you within the next business day!
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Watch my presentation at the Marketing Collective's E-commerce and Digital Customer Journey event.
Crasman Ltd
22 Mar 2022
