Improving the post-purchase experience to ensure customer retention

Throughout the year, consumer spending has remained resilient despite the threatening economic headwinds. This trend is leading the retail industry into the holiday season with optimism, as consumers are expected to increase spending by a healthy 7% this year, allocating an average of more than $1,500 for gifts, travel, and entertainment.

Although spending has remained intact, the way shoppers spend has shifted in favor of conscious consumerism. As they look for ways to cut back on discretionary spending, more than 75% of consumers are seeking out holiday deals and discounts.

For retailers, this means the pressure is on to provide a seamless shopping experience for customers from product discovery to post-purchase. As consumers hunt down deals worth their while, frustrations at any point of the shopping journey could give them a reason to look elsewhere. While the product discovery and browsing stages are important moments for a retailer to captivate the consumer's attention (and dollars), the post-purchase experience is the bow on the shopping experience package.

This holiday season, retailers should focus on three key enhancements to the post-purchase experience to keep their customers loyal and avoid revenue loss due to cart abandonment.

Shipping and delivery transparency

Transparent communication after checkout is a critical first step in establishing trust with customers. According to recent research, 64% of shoppers reported that the ability to check delivery status and track orders is the most important online shopping feature.

Retailers can ease stress for customers by sending regular email updates after purchase regarding packages and gifts. Key moments to communicate with the customer include immediately after purchase, once the order is processed, once it's been packaged, when it's been shipped, and when it's out for delivery.

If any of these status updates are delayed, the customer should be informed to maintain the highest level of transparency.

Personalized customer communications and offers

Once a purchase has been completed, retailers should shift focus to long-term, personalized marketing to turn shoppers into repeat customers.

Hyper-personalized post-purchase communications can keep customers engaged even after they've paid for their initial purchase. These communications can include product recommendations for other things they may like based on their purchase or user engagement on the brand's site, and discount offers to repurchase what they ordered or other recommended products.

Retailers can also incentivize consumers to make another purchase by inviting them to join their loyalty programs, especially as consumers are switching brands at unprecedented rates. More US consumers reported switching to different brands and retailers in 2022 than any other time throughout the pandemic and 50% of Gen Z consumers in the U.S. and U.K. say they would switch from their favorite brand to a new brand if that brand is cheaper or of higher quality.

Loyalty programs offer businesses a way to combat these shifts and build strong connections with their customers, encouraging repeat purchases through discounts and specials available only to members. A recent survey revealed that 65% of U.S. and U.K. consumers plan to leverage such discounts and specials provided by loyalty/rewards accounts to save money during this holiday shopping season. An invitation to earn rewards on a purchase just made or a future purchase could make a difference in whether a customer shops with a retailer again.

The value of loyalty programs extends beyond the holidays. Incentives to reach certain levels of the program marked by total spending support revenue growth year-round and give consumers a reason to continue shopping at one retailer over others in the same market.

Innovation and personalization during and after unboxing

Many retailers have incorporated cutting-edge tech-enabled enhancements to make their e-commerce experiences stand out, however, innovation shouldn't stop with the discovery process. Retailers should bring enhancements to the post-checkout experience as well.

One way to do this is by using QR codes in packaging inserts. These codes can link to a landing page specific to the product a customer has purchased, a video from the brand's founder educating the customer on the brand or product, or even a personalized page with product recommendations. This is a great way to add a personal touch to the unboxing experience and drive additional positivity for the company and product.

Retailers should also be sending personalized messages checking in on delivery and how the customer likes the product. Communication at this step shows the customer that the brand is invested in their satisfaction, helping build positive sentiments and encouraging repeat purchases.

The post-purchase experience is just as crucial to driving revenue as attracting your customer base in the first place. Once a consumer has trusted you with their hard-earned dollars, you have to make coming back worth their while.

The holidays are a critical time for businesses to generate revenue and build customer loyalty for the following year, and those who are implementing post-purchase enhancements will see great success. Retailers should take note of what works well this year, and begin working with a partner in early 2024 for a permanent position on consumers' nice lists well beyond the holiday season.