The following post is a guest blog from Inbenta.
Two seconds is a long time in the online world. In that time, Google will process around 100,000 search queries, global users will send more than 4.5 million emails, and nearly 60 million Whatsapp users will receive a message.
However, it is not a long time if you are an online retailer. According to a recent study, two seconds is all a customer needs before they give up on your website. The picky customer just got pickier.
The customer is still king
It won’t surprise you that the online market is leaving its high street competitors in the dust when it comes to being the preferred shopping method for customers. What is interesting is that the ‘tech savvy’ Millennials are not the only ones choosing to shop with their feet up.
In fact, according to research from KPMG, Generation X consumers (those born between 1966 and 1981) made more online purchases than any other age group while Baby Boomers (1946-1964) spent more on average per transaction. Putting all your eggs in the Millennial basket might not be such a good idea after all.
This is especially the case when you consider what the different generations of customers value within a company. While 59% of consumers would try a new brand for a better service experience, younger consumers are keen to be treated as unique individuals and so prefer companies which offer personalized promotions and an ability to anticipate what they want. When you have two mouths with different tastes to feed, how do you keep them both satisfied with the same meal?
The obvious solution is to ramp up your customer service team to kill two birds with one stone. The problem is that to maintain your profit margins and pay the extra salaries on your books, you will have to push prices up. Obviously, that is not a wise move in an increasingly crowded market.
Of course, you could decide to accept that you will lose some customers and choose instead to target new ones who are willing to pay a premium for a better experience. But according to the White House Office of Consumer Affairs, it is 6-7 times more costly to attract a new customer than it is to retain an existing one. Continue reading