It’s no secret that online retail brings just as many challenges for small retailers as it does opportunities, and making sure customer service is strong is first among these. As customers get more used to the speed and convenience of online shopping, their expectations and demands on retailers are growing as well.
With the exception of a few big ticket items, customers now expect everything from next day click and collect to speedy returns – and few are happy to pay much for these premium services. “People want more, and they want to pay less – the job of the retailer is to provide that,” says Michael Heppell, a customer service consultant who has worked with retailers including Marks & Spencer and Tesco as well as slew of independent retailers. The challenge today is that it’s no longer enough to deliver on the old customer service adage of under promising and over-delivering. “Now it has to be just promise and deliver - there can’t be any gaps,” says Heppell.
If you’re exporting your products to consumers overseas, however, it is important to manage customer expectations, says Lesley Batchelor, director general of the Institute of Export. The rise of e-commerce has led to high expectations from customers about delivery speeds. But there are good reasons why trading internationally takes longer, says Batchelor. Safety is a crucial concern with global trade and so it’s important to have the correct documents explaining what the goods are. “There are certain things we all have to adhere to because of safety. People can’t trade without the right documentation,” says Batchelor.
Returns
One major challenge for retailers is dealing with returns. Returning products bought online is now common practice among consumers. According to the UPS Pulse of the Online Shopper survey, only 53% of those surveyed are satisfied with the ease of making online returns and exchanges. Many retailers get caught out with overseas returns, says Heppell - they may not be prepared for the additional costs, for example.
Businesses will need to decide on their returns policy, including at what point to refund the money. They may want to do this quickly or wait until they receive the returned item. While there are guidelines, it’s up to the retailer to decide on their policy and what service they are able to provide, says Batchelor. “You need to decide if you’re going to give a free of charge return. It’s common in the UK but not internationally.” One option is to charge consumers that are returning items. Another is to increase the post and packaging costs slightly to cover the cost of returns, says Batchelor. “It’s all about managing people’s expectations. It’s about your business and how you’re prepared to work.”
Providing flexibility with easy returns options is essential for customer satisfaction, says Luis Arriaga, managing director of UPS (UK, Ireland and the Nordics). UPS’ recent survey highlighted how 61% of consumers were more likely to shop with a retailer if they offer a hassle-free returns policy. “UPS has the broadest portfolio of return options in the industry - making it a lot more convenient for your customers to make returns which can lead to more repeat business for you,” he says.
“From the offset, retailers should consider the returns policy that they offer. Return policies should be clear and consistent so that your customers are informed before they make a purchase. If someone is buying a product online from overseas they need to know they can return it easily if it’s not quite right,” Arriaga adds.
Be transparent
It’s also important to be clear if you have any differences in policy between international and local returns. “You don’t want customers to feel they have been misled after they have made their purchase,” says Arriaga. Having these fundamentals in place from the very beginning is essential to ensure that your business will run smoothly and retain customer loyalty.
Heppell says transparency is a good idea across the board when selling or marketing online – for instance, for retailers whose costs and therefore prices are higher, it is a good idea to explain this. “Tell people what your processes are, how you start manufacturing six months before the product is finished, and have the original drawings on your website, for instance. Then you can say your returns policy is what it is because this process is such a long one.”
He adds too many smaller retailers adopt a cookie-cutter approach to delivery and returns. “People tend to just take their terms and conditions from somebody else – it’s almost cut and paste. If a retailer’s service is bespoke and the products are high quality, you need to educate people.” He says shoppers can be educated so that they realise that the product is worth a longer wait, or why a returns policy is less flexible or more expensive. But he admits: “It’s tough to do that. People want instant gratification. But it’s all about education.”
Debbie Homer-Davis is managing director of Canterbury-based childcare retailer Baby Lady, and has sold products all over Europe. She says the focus should be on service, and that customers will often accept that a retailer is not necessarily the cheapest if they are receiving excellent service in return. “We are not expensive, but we are not always the cheapest. I don’t think that’s necessarily what customers want. They want advice, and our staff are well trained.”
Every retailer will need to make sure they have robust logistics systems in place to cope with higher volumes - especially around Christmas time. Homer-Davis factors in extra time for Christmas deliveries. “We sell a lot of dolls prams at Christmas but we have a cut off period that allows us a margin for error should a box not arrive on the expected date, or should there be a problem with an item we have sent.”
Arriaga agrees that planning is vital to ensure smooth logistics around the busy Christmas period. “At this time, more than ever, having contingency plans in place to ensure your customers receive their purchases on time is crucial. It’s important for e-tailers to work with a partner that has the expertise, technology and processes to implement contingency plans in case of unexpected events during the peak period,” he says.
UPS has a number of tools to help retailers cope with the Christmas rush. Retailers can follow shipments on ups.com or with UPS My Choice.
“UPS My Choice offers delivery alerts for customers a day in advance so they can plan ahead, reschedule a delivery or re-route a package to another address. It means consumers can plan for their deliveries when and where it is convenient for them while retailers benefit from an improved consumer experience and the potential to reduce inbound call centre enquiries,” Arriaga explains.
In today’s global market customers have high expectations around delivery times and returns, and this can put pressure on small retailers. However if they manage customer expectations, clearly communicate their strategy and prepare in advance for busy periods, it’s possible to meet shoppers’ high customer service expectations.
Content on this page is paid for and produced to a brief agreed with UPS, sponsor of the Exporting to New Markets hub on the Small Business Network.
