Key factors in shipping for customer retention

Dotcom analyzed the online shopping experience and identified the characteristics retailers must possess to attract customers and create lifetime customer value. Below are some other findings from the study that are worth mentioning

1. Fast shipping builds trust. 44% of online shoppers say fast shipping times increase their trust in a brand.

2. Consumers want transparency. 47% of online shoppers have decided not to buy from a retailer again if the status of the order and delivery process was not clearly visible.

3. There is a way to reach new customers. Half of online shoppers (50%) say that gift-like or branded packaging for their online orders makes them more likely to recommend the product to a friend.

4. Consumers want brands to exceed their expectations. More than half (55%) of online shoppers say they would be somewhat or significantly more inclined to make another purchase from a retailer if a free gift was included with the package they ordered online.

Haggerty emphasizes that it is increasingly important to use consumers as brand advocates. In e-commerce, retailers are learning what they need to do to drive customer loyalty and increase positive reviews of their brands. Shipping, the unpacking experience, and addressing customer needs all contribute to consumers' understanding that brands care about them and their needs.

Shipping speed as a key factor

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87% of online shoppers identified shipping speed as a key factor in deciding whether to make another purchase from an e-commerce brand. The study found that 67% of online shoppers are willing to spend more money for same-day delivery if they need the package at a specific time, such as for an anniversary. In comparison, 47% are willing to pay more for same-day delivery simply because they want their package faster. This shows that consumers differentiate between 'need' and 'want', but still prefer fast delivery when it is offered.

Branded packaging influences customer perceptions

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According to the study, speed is not the only factor that influences customer loyalty and brand perception. Consumers also care about aesthetics. In fact, 40% of online shoppers say they are somewhat or significantly more likely to shop at a retailer that offers premium packaging. The same percentage of shoppers say gift-like or branded packaging influences their perception of the online retailer that shipped the item. Dotcom conducted a year-over-year comparison on how branded packaging influences shoppers' perceptions.

• Brand packaging is increasingly impacting brand perceptions. In 2016, 68% of online shoppers said brand packaging made the brand appear more premium, up from 60% in 2015.
• Consumers expect more. More than half (61%) said branded packaging made them more eager to receive/open the package. In 2015, the figure was 49%.
• Packaging directly relates to value. Nearly half (44%) said branded packaging reinforced their belief that the product was worth the price. In 2015, that number was 45% of online shoppers.
• Consumers want packaging that represents a familiar brand identity to them. 17% said that branded packaging confirmed they could identify with the brand.
In 2015, that figure was 18%.

Maria Haggerty, managing director of Dotcom Distribution stresses that e-commerce is taking over the retail market. Brands need to ensure they benefit from the ability to deliver the packages customers expect in as personal a way as possible. Satisfactory order fulfillment and a highly desirable unpacking experienceare a big part of that.