Some of us remember the world before e-commerce became a virtual megastore always open with everything. As much as people love physical stores, e-commerce has major benefits.
And consumers continue to dive, with PYMNTS finding that 46% of respondents purchased retail products and 31% purchased groceries through online channels in the past month.
This is one of many findings from Satisfaction in the Age of E-Commerce: How Merchants Cultivate Long-Term Relationships with Their Customers Online, PYMNTS and Risky Collaboration. Based on surveys of nearly 2,160 consumers in 2022, we looked at the aspects of e-commerce that have the most impact on merchant and shopper trust and loyalty.
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- 41% of online retail shoppers and 40% of online grocery customers are “very” or “extremely” likely to switch to someone else if merchant confidence is shaken
Physical retail has downsides, and for e-commerce, a lot of it is fraud. Consumers have already been burned or feared it will happen to them, with the theft of personal data during e-commerce transactions being the biggest for many.
According to the study, “loss of trust is directly correlated with customer churn,” as 41% of online retail customers and 40% of online grocery customers say they would be “very or “extremely” likely to move traders to confidence.
- 85% of customers who say they are “very” or “extremely” satisfied with an online retailer other than the grocery store say they have a high level of trust in this merchant
A point highlighted repeatedly by the data is the correlation between trust and transactions with certain merchants. It’s not a deep thought to connect trust and providers of choice, but there are nuances that are revealed in the full study.
“Returning customers are crucial to any business, and improving customer satisfaction and trust allows merchants to increase long-term loyalty and customer value. Among consumers who report having a great deal of trust in an online grocer, 21% have used this grocer for at least five years and 49% have used their services for one to five years,” the study states.
- 27% say convenience and reliability are the most important factors when deciding where to buy
The digital shift has opened up new worlds of experience for consumers in what an easy shopping expedition can be when powered by data and devices that do much of the real work.
The definitions of ease and convenience vary between retail and grocery products. The effect is most pronounced in grocery stores, but 27% of consumers overall cite them as highly satisfying ways to use e-commerce in our post-pandemic lives.
“Among respondents who order groceries online, 50% say curbside pickup is an important feature, and 25% say it’s the most important feature when deciding Where to shop. In comparison,” according to the study, to the 17% of online retail shoppers who are at the curb.
Get your copy: Satisfaction in the Age of E-Commerce: How Online Merchants Cultivate Long-Term Relationships with Their Customers
