At a time when billions of people and devices are online, and the ‘internet of things’ continues to explode, it is no surprise that consumers’ preference to do their shopping online over actually going into a store has increased dramatically over the past few years. Consumer buying behaviour has changed and is now evolving in such a way that retailers are having to approach how they engage in a completely new way. As a result a huge rise in online-only retailers have emerged, meaning the days of actually walking into a store to purchase goods are increasingly distant and with recent reports that by 2018 £1 in every £7 spent in the UK will be online, growth is on the horizon.
This change in behaviour is putting retailers in a challenging position as it is driving a disconnect between them and their customers – resulting in some inherent flaws in the customer service model. This is because retailers have struggled to keep up with the trends of the modern day consumer. We have entered a period where more often than not, consumers have better technology than a retailer and are more informed than the person they are speaking to. In addition, consumers are, now more than ever, turning to social media channels like Facebook and Twitter to air their grievances which have often resulted in mixed results. The customer service model has become fragmented by technology and retailers are trying to piece it all back together. Some retailers have done it successfully and been quick to successfully implement viable customer services solutions into their offering but others, often those with smaller resources, have struggled. But, it doesn’t end there. Online retailers are facing an uphill task of actually resolving customer issues as they don’t have the solutions in place to deal with the process after the enquiry stage – driving further flaws and gaps in the consumer relationship. Just look at eBay, last year they had over 60 million unresolved disputes – which means a lot of unhappy customers in the marketplace.
By implementing the right solutions in the back end and giving consumers the right channels to engage, retailers are in prime position to help bridge the gap and correct the current flaws in the customer service model. By delivering an end-to-end customer service model that is reactive to consumers’ needs and proactive in making sure issues are resolved, retailers are able to build stronger relationships with customers and brand reputation will increase as a result. Issues that are dealt with in a quick and efficient manner keep customers happy and all retailers will tell you that a happy customer is usually a loyal customer. Retailers should also be aware of the EU wide legislation which comes to play in 2015 which will make online dispute resolution (ODR) compulsory for retailers, so whilst business growth financially might be a short term goal, implementing a viable service to manage online disputes will be something that retailers need to address very soon. If European retailers address the existing flaws that are appearing in the online customer service model, they have a huge opportunity to increase sales by decreasing customer churn, keep their current customers happy whilst also adhering to impending EU legislation.
By Karl Reindl, managing director of Youstice.
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