3 Essential Reasons To Care About The Post-Checkout Experience

We started off August with a trip to Indonesia! Our team members, Dana and Dennis were in Jakarta, Indonesia for the annual Meet Magento Indonesia event where Dana shared more on reasons to care about the post-checkout experience.

According to a McKinsey publication, Indonesia has seen steady growth in its online sellers – doubling every year for the past three years, reaching a total of 4.5 million active sellers in 2017. The Indonesian e-commerce sector is projected to grow eightfold from 2017 to 2022.

Despite the fast-growing industry, our recent study shows that delivery in Indonesia continues to be a challenge, with 36% of consumers expressing dissatisfaction in their e-commerce delivery experience, and over 90% of customer complaints and negative feedback relating to late delivery and a lack of communication about delivery status.

How does the post-checkout experience impact businesses?

At Meet Magento Indonesia 2019 (MMID 2019), Dana spoke about how businesses can succeed in the post-checkout experience and how it impacts the business. Some statistics underlining why a pleasant post-checkout experience is vital:

  • Only 20% of consumers are likely to purchase from a retailer again after a negative delivery experience and would blame the retailer for the poor experience, regardless of who actually delivers the product.
  • 60% of all consumers rate their post-purchase experience as “underwhelming”
  • 56% of all consumers are disappointed with service from retailers and e-commerce sites
  • 83% of all consumers think brands do not care about the experience after checkout
  • 39% of all consumers say a negative delivery experience will stop them from returning

Why should you care about the post-checkout experience?

Essential Reason #1. It’s BIG

Everyone likes to be in the know – including your customers. 

Your customers want to be informed of where their parcels are. A study done by MetaPack Consumer Research in 2017 shows that 40% of shoppers check an item’s order status at least once a day after checkout, 93% of shoppers expect to receive proactive shipment and delivery updates, and 90% of shoppers typically track the delivery status of their online orders.

What does this mean for merchants? It shouldn’t be thought-about as just more work, keeping your consumers engaged is an excellent avenue to upsell opportunities and build customer loyalty. 

There are at least 4.6 touchpoints with your customer after the checkout process, and 4.6x more upselling opportunities through delivery notifications, post-purchase surveys, etc. Our customers at Parcel Perform have increased their customer lifetime value by 40% through the post-purchase experience. 

Essential Reason #2. It’s Now or Never

With the advancement in technology, growing e-commerce adoption, and rising consumer demands, consumer goods are moving faster than ever. Businesses are competing on more than just price and product quality. 

From the same MetaPack study, 58% of consumers choose an e-commerce merchant over another because it provided better delivery options, and 54% of consumers say clear, accurate tracking is an important consideration for their purchases.

What does this mean for businesses? Make the post-purchase experience your differentiator. Apart from a great product, value proposition and shopping experience, consider making the delivery experience your competitive edge. 

Do you have a variety of delivery options? Are you offering an easy returns solution? Do you excel in the delivery experience? 

Essential Reason #3. It Can Be Done

Managing multiple logistics carriers seems like a complex task. Many businesses choose to focus on their core expertise and leave the ‘dirty work’ of logistics management to their third party providers. 

A simple first step could be to collect and standardize the logistics data that you have, in order to understand.  The good news is, all the leg work can be easily outsourced to SaaS (software as a service) platforms like Parcel Perform. 

What does this mean for you? As a first step, good data allows you to understand what’s going on in your supply chains. Once you’ve taken that first step, you’ll be able to send delivery updates to your customers and your team, improve your Customer Service operations and make smarter decisions in your logistics management (e.g., picking better logistics carriers based on their delivery performance).

Succeed in the post-checkout experience to grow your business.

If customer satisfaction in the post-checkout experience sounds abstract to you and your business, leave it to us. We make data simple and easy to understand for both you and your customers. Talk to us if you’re keen on improving your e-commerce business.