Customer Feedback in eCommerce: Why’s it Important?
- etaily Team
- April 15, 2022
- 6 minutes reading
Customers are at the center of any business.
They say change is the only constant in the world. Fortunately, the transformations expected to take place this year are hopeful. After the uncertainties from the past couple of years due to the global health crisis, retail sales are optimistic.
As everyone adjusts to the new normal, both in-store and online sales will benefit from pent-up consumer demand as the economy is reopening and consumers are getting ready to spend. In 2021, brick-and-mortar sales grew at 6.3% and eCommerce at 17.9%—and this growth is no passing trend. By the end of 2022, the eCommerce market is expected to expand by 12.7%, bringing its global sales to $5.545 trillion.
eCommerce is here to stay, and it’s more vital now than ever. Because of this, brands must change their tunes and formulate new strategies to remain competitive in the always-evolving market. One way you can do this is by collecting customer feedback.
Customers are at the center of any business. Without them, it’s impossible to drive sales and expand your business. But how exactly can customer feedback impact the eCommerce space, and what can it do for your enterprise? Read on to learn more.
Why is Customer Feedback Important in eCommerce?.
Customer feedback is information provided by consumers about their experience with a product or service. Companies can collect feedback proactively by surveying, examining user activity, or even asking for reviews directly.
Monitoring customer feedback is crucial for eCommerce businesses, and here are a few reasons why.
1. It monitors customers' online shopping experience.
You can narrow these stages down into several Moments of Truth (MoTs) where your customer forms an impression of your brand—and this is where online feedback plays its part. Collecting feedback during MoTs will help you further identify how to improve and enhance your touchpoints. Ultimately, the end goal is to provide moments that are as seamless as possible for your customers.
2. It contributes to product or service development.
For each customer who complains, an average of 26 other buyers who feel the same way will say nothing. Instead, they would just leave and most likely visit your competitors’ sites. To prevent this, you need to show your prospects you know what they want. That starts with feedback.
You can leverage this information to upgrade your customer experience, increasing satisfaction all the more. Remember: the more you use the feedback to improve your processes and product features, the more likely you can reduce churn and retain customers.
3. It increases online conversions.
The typical conversion rate in eCommerce is 2% to 4%. With such a wide room for improvement, there are many strategies that can help boost conversions, and customer review is one of the most effective routes to take as it gives you the most profound insights and means to make meaningful changes to your business funnels.
Customer feedback is a practical solution for reducing shopping cart abandonment, which occurs in nearly 77.3% of online orders. Collect data on why your visitors leave without checking out an item on your store via exit feedback forms, and then conceptualize brand new plans to work on your conversion rate.
An increase of at least 1% could translate to hundreds or thousands of revenue from new customers. Gathering such insights and using them to improve your online conversion efforts is a step you must not ignore.
4. It strengthens customer relationships.
Creating a customer-centric business involves collecting, analyzing, and acting upon customer feedback. Letting your audience know that you respect their concerns about your product or service builds a loyal customer base. The more consistent you develop your brand according to their reviews, the more likely you will keep your present customers and attract new ones.
With a dedicated customer base willing to be advocates for your brand, your business can have a significant edge over your competitors. This, in turn, can lower customer acquisition costs, increase profitability, and build a better reputation for your brand.
5. It helps capture leads.
A customer feedback solution offering real-time capabilities allows your business to shorten your response time, should any inquiries or concerns arise. It also helps you capture visitors while they’re on your website.
When your clients fail to get what they want from your site, they might provide you with their contact information in exchange for a promise of an update. When this happens, they become a lead. Their personal data allows you to correct the situation and convert prospects into customers.
Moreover, their reviews can help you understand your ideal customer, enabling you to develop an exceptional user experience for your patrons.
Know What Your Customers Value.
No matter what industry your business falls into, it’s essential to collect and analyze customer feedback. Knowing and understanding what your customers think and feel about your products and services is as effective—if not more—as brainstorming with your team members on how to develop your business.
Only then can you improve your processes, grow your sales, and stay competitive once you determine what they value.
Indeed, customer feedback helps eCommerce operations adapt to this ever-changing industry. But if not strategized carefully, your efforts could be a flash in the pan. An even more effective way to rise from the trend is partnering with an eCommerce enabler to revamp your business strategies from start to finish.
Here at etaily, we offer end-to-end solutions to successfully e-tail your business so you can provide the best shopping experience for your customers. Contact us today to learn more about how we can help elevate your brand in the digital commerce space.