Customer Experience: Price Doesn’t Matter as Much as You Think
There’s no question that the Web is an ultra-competitive environment that accounts for a growing percentage of commerce during the holiday season.
As found in the recently released ForeSee Experience Index (FXI): 2013 Retail Edition, the interesting thing is that during the holiday shopping season, when most retailers depend on customer loyalty, we found that only 9% of people visiting a company’s website said that it was the only company they considered. Another 24% said they considered other companies but prefer this one. That means 54% said this company was one of several companies they considered equally and 13% said they considered this company but preferred another, showing that two-thirds (67%) of Web visitors do not have a strong allegiance to the company they visited.
It’s no surprise at all that those customers who considered only that company are most satisfied (88) and have the highest Future Purchase Intent score (90) out of the segments where Satisfaction ranges from 67 to 88 — one of the most distinctive ranges in the study. Those who considered the company but preferred another scored the lowest.
At first glance you’d think this might be a price-driven issue – people looking for the best deal. But based on the aggregate, it is not about price. In the FXI, Price – only 7% of retailers found Price to be an issue – is the lowest-scoring element with the smallest impact on satisfaction, while Merchandise is the high-priority element for 57% of retail websites. When you look at mobile, not a single retailer registered Price as the top priority to concentrate on in 2014. In fact, Functionality reigns at the top for 38% of retailers in this channel. For the store channel, only 8% of the measured stores recorded Price as the top priority, whereas Merchandise is the number-one element to focus on in order to improve the customer experience.
Retailers have a huge opportunity to capture the hearts and wallets of customers who are on the fence with where to land their loyalties. Those who have superior customer experiences could gain the greatest gift of all — a few (hopefully a lot of) new and loyal customers through 2014.