5 effective customer experiences for retailers in the digital age

Today's buyers have no shortage of places to pick and purchase the items they want. From local, in-person retailers to an expansive ecosystem of online offerings, it's undoubtedly a buyer's market.

Competing in this crowded marketplace can be incredibly challenging, a predicament made more difficult by unprecedented disruption throughout the retail sector. As McKinsey & Company concluded, "the retail sector has experienced as much disruption in the past five years as it has in the previous 25."

From a customer experience perspective, people are open to change. PwC's June 2023 Global Consumer Insights Pulse Survey found "consumers are rethinking how and when they engage with brands," including 51% of respondents looking for more convenient experiences and 41% interested in trying new products.

Simply put, retailers face an opportunity and a challenge. On the one hand, outpacing the competition has never been more demanding, as a crowded ecosystem makes it difficult to differentiate. On the other hand, consumers are ready for you to make an impression, eligible to be converted into long-term customers.

The next steps for retails are critical.

Here are five buyer-facing features that can elevate customer experiences, create customer loyalty, and cultivate brands that last in the digital age of retail.

#1 Order Tracking in Real-Time

Whether filling an online order or delivering products to a store, people want to know where their products are.

According to one survey of customer delivery tracking habits, 96% of consumers track deliveries, and 43% of buyers say they track deliveries every day until their package arrives.

Providing real-time shipment tracking significantly eases customer concerns by building trust in the delivery process, which is integral to overall customer satisfaction.

In contrast, retailers that can't or won't provide this functionality will struggle to compete, especially around peak buying periods, like the holiday shopping season, when buyer angst is especially high.

#2 Easy, Affordable Returns

Competitive brands need to develop transparent, simple, and fair return policies that empower customers to make purchases with confidence.

Salesforce notes that 78% of shoppers will abandon their cart if free returns are unavailable at checkout. Similarly, Buy Online Pickup In-Store is increasingly important for shoppers who expect a compelling omnichannel shopping experience.

While some brands roll back their generous return policies, like allowing customers to return a garment for the duration of its lifetime, others are charging customers for returns, shrinking return windows, and otherwise rethinking their protocols.

Most customers don't expect to be able to return items forever, but a fair, easy-to-understand policy instills confidence and generates loyalty.

#3 Personalized Communications

Automating post-purchase communications can proactively keep customers in the loop, confirming orders, relaying tracking details, offering promotions, and recommending relevant product combinations.

Now, innovative generative AI solutions are empowering brands to make these communications more personalized and effective than ever before.

With 76% of customers saying that receiving personalized communications was one of the primary reasons for considering a brand and 78% saying it made them more likely to return to make more purchases, it's clear that combining automation with personalization is an incredible opportunity for retailers to capture minds and market share.

#4 Loyalty Programs

People love loyalty programs.

They like feeling part of an "in" group entitled to special rewards and discounts, exclusive access, and enhanced service.

That's why loyalty programs can boost revenue from participating customers by up to 25% annually, and, as the name suggests, these customers are more loyal than other buyers, making them more likely to make repeat purchases, endorse the brand, and shun the competition.

#5 Reclaim Cart Abandonment

Cart abandonment is ubiquitous, especially in online shopping environments where customers can easily click away and quit their purchases.

One analysis found current cart abandonment rates approach 80% , creating an obvious opportunity for retailers to grow their revenue and better engage their potential customers.

Fortunately, not every customer that leaves is lost.

Cart abandonment often signifies a minor problem that can be overcome with the right, timely solution. This might include:

• An overly complex buying process.
• Unexpected additional taxes or heightened costs.
• Long delivery times.
• Unsupported payment gateways.
• Out-of-stock items.
• Missing variations.

These are setbacks, not deal breakers.

Personalized follow-up through email or text can recover a purchase, converting lost opportunities into meaningful brand connections.

The Customer Is Always Right

The customer is always right because they always get to choose where they spend their money.

Customers' changing preferences, favoring convenience and personalized interactions, provide guidelines to help retailers compete in a crowded ecosystem.

Notably, by embracing real-time order tracking, accessible returns, individualized communications, loyalty programs, and proactive cart abandonment strategies, retailers can significantly enhance customer satisfaction and foster loyalty.

Their choices shape the retail landscape, making it essential for retailers to align with their evolving needs and desires.