Retailers should consider creating personalized e-commerce experiences, enhancing mobile platforms and providing alternate delivery locations to boost customer satisfaction, a new study suggests.
US logistics company UPS and internet analytics company comScore surveyed more than 5,200 online shoppers in five Asian countries – China, Hong Kong, Japan, Korea and Singapore – in September and October 2014 to learn what drives an online shopper’s full path to purchase. Results show the advent of the "flex shopper" – an online buyer who easily switches channels and devices when evaluating and purchasing products, and expects a seamless retail experience from research to delivery.
Personalised experience drives customer loyalty
The study revealed 48 percent of Asian online shoppers embrace new shopping trends. The market has the second highest adoption of curated subscription services – the tactic retailers use to help consumers discover products based on their preferences and purchase history. China has the highest number of online shoppers enrolled in such services at 68 percent, followed by South Korea at 55 percent, and Singapore at 49 percent. In Hong Kong, 48 percent are currently enrolled in at least one curated subscription service.
In comparison, it is much lower in Europe at 23 percent and the United States at 22 percent. Japanese online shoppers are the least interested in this service, with only 18 percent of respondents enrolled.
Mobile research helps make purchasing decisions
Online shoppers in Asia use their mobile devices to research products prior to a store visit or while in store, make purchases and track deliveries. Chinese (65 percent) and South Korean (48 percent) online shoppers are the most active in purchasing on a smartphone.
Top concerns include product images not being clear or large enough (50 percent), product information not able to be viewed easily (42 percent) and technical difficulties when comparing products on websites (41 percent).
The study suggests retailers to consider enhancing their mobile platforms to drive conversion from research to active consumption.
"In Hong Kong, where omnichannel retailing is prevalent, we are seeing mobile contributing to the popularity of e-commerce," said William Ng, Managing Director of UPS Hong Kong and Macau.
"With one of the highest smartphone penetration rates in Asia, engaging the discerning Hong Kong consumer online will depend on a retailer’s ability to address service gaps across all channels."
Alternate options increase customer satisfaction
While online shoppers prefer to have the majority of their orders delivered to their home, there is a growing trend for alternate delivery locations. Asia leads all markets with 45 percent of respondents stating they prefer to have their online orders delivered to locations other than their home. When they are unavailable to sign for a package, 33 percent said they want their items shipped to a local retail location authorised to hold packages for pickup at their convenience.
These locations are a popular choice for 47 percent of Hong Kong online shoppers, but the least preferred in China (27 percent).
"Consumers engage better with businesses that allow them to exert control at various touch points along the shopping process," Houck said. "UPS is uniquely positioned to empower retailers by reducing points of friction for the ‘flex shopper’, and provide a personalized customer experience with innovative logistics solutions and returns services."