E-commerce Customer Experience: An Introduction to Three Levels

E-commerce Customer Experience: An Introduction to Three Levels

At the core of ecommerce 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 profitable business has been widely researched. In summary, one could say that customer experience is the most significant factor enhancing competitive advantage:

  • Companies that offer excellent customer experiences grow 4-8% faster than their competitors (Bain & co)

  • Excellent customer experience = higher purchase frequency, higher average purchase, lower customer acquisition cost (Peppers, Rogers)

  • Excellent customer experience increases customer trust → Trust boosts customer retention and active recommendations (Edelmann 2019)

What does excellent customer experience mean in the context of ecommerce?

Ecommerce Customer Experience and Competitive Advantage

We translated the ecommerce customer experience into tangible actions and, based on our perspective, divided it into three different levels:

Basic Level of Customer Experience

In our view, a basic level of customer experience is the entry ticket to the market, in terms of competitive advantage: falling below this level means that competitors already have a significant head start.

The basic level customer experience in ecommerce:

Criterion

Practically means:

Functional multichannel and search engine optimised ecommerce

Device-independent implementation (often emphasising mobile experience), continuous SEO work

Diverse payment methods

Customer-oriented selected payment methods: mobile payments are highlighted in trends

On-demand customer support via 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, personalisation, recommendations (see AddSearch)

Fast delivery

Customer-oriented selected delivery methods

Up-to-date and accurate product information

PIM or another suitable system for managing product data

Good Level of Customer Experience

At a good level, ecommerce offers a superior experience in several aspects of customer experience compared to competitors, thus generating competitive advantage.

Criterion

Practically means:

Brand stories and useful content

Entertaining and beneficial articles, videos, podcasts, content partnerships, networks for the customer

Transparent responsibility

Demonstrating responsibility everywhere in the online store: on the homepage, in product information, at checkout, in delivery and payment methods

Enriched product information

In addition to text, videos (product showcases, reviews, delving into details, related topics), diverse images, precise technical information, guides and instructions

Store-specific inventory information

Accurate stock information (ecommerce warehouse, store-specific stocks)

Accessibility in order

WCAG standard AA level

Excellent Level of Customer Experience

An excellent level of customer experience leaves a significant positive impression on the end customer, increases trust in the ecommerce site, and leads to active customer recommendations.

Criterion

Practically means:

New ways to experience products

Augmented Reality/Virtual Reality/360/3D models (see for example Sketchfab)

Customised ecommerce experience

Content and product recommendations personalised based on customer data

Social shopping

Group discounts, leveraging social media in direct purchases

Seamless in-store + ecommerce experience

The best possible product information online, real-time stock and store inventories, shelf location information in the ecommerce, utilising ecommerce within physical stores

Tailored features based on customer understanding

Continuous accumulation of customer understanding through research work, addressing special customer needs with tailored purchase paths, product selectors, and unique additional services 

Which level does your ecommerce site belong to? Would you like help elevating the customer experience of your ecommerce to the next level?  

See my presentation at the Marketing Collective's Ecommerce and Digital Customer Journey event.

Crasman Ltd

22 Mar 2022