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How important is the post-purchase experience?
That was a question we recently set out to answer alongside our partners at Jarden.
The results were eye-opening, and should provide a lot of food for thought for retailers big and small across Australia. Key findings include:
- Only price trumps post-purchase experience when it comes to factors that influence where consumers shop online
- Customer expectations are rising when it comes to post-purchase experiences, driven in large part led by Amazon, Temu and Shein growth and investment
- One in two don’t shop with a brand post a poor experience
Clearly, the post-purchase experience has a strong correlation to customer loyalty or customer churn.
We believe more investment – or more optimisation from existing investments – is needed because:
- Amazon: The global behemoth continues to expand its Australian distribution centre capabilities with >20 RDCs, a fully automated c200sqm facility underway in Victoria, a new DC opened in WA, allowing them to expand one-day delivery and lifting customer expectations.
- Choice: More options are available than ever before and customers are less loyal, cross-shopping more. Companies need to expand their range to grow basket size and compete with Amazon which has a range of >200m SKUs.
- Cost of customer acquisition: is rising, with marketplaces like Temu heavily investing in marketing and customer acquisition. This increases the need to drive loyalty and find higher ROI ways of driving loyalty via experience, loyalty or true pull vs. push models.
Our mission is to enable retailers to create competitive advantages through delivery. When the post-purchase experience is treated not as the end of customer acquisition but the start of customer retention, loyalty grows.
Read the full report here: Whitepaper here
