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E-commerce Customer
Experience Management
Strategies and Paradigms
Introduction
The E-commerce industry continues to be a fast changing one. The
traditional E-commerce setup is falling short in its bid to acquire
and retain customers. There has been a paradigm shift in the way
E-commerce is conducted today, as E-commerce has graduated
from an online purchase process to a pure shopping experience.
Merchants are no more looking at E-commerce merely as a
convenience tool; rather, there is a complete transformation of the
customer engagement strategy in the online business. Merchants
and technology providers are working on several intuitive initiatives
to engage customers in a more value-driven way that empowers,
educates, and provides a handle to consumers to make their buying
decisions through a data-driven approach. The other big shift with
E-commerce strategy has been around eradicating the thick line
between B2C and B2B markets. E-commerce merchants are realizing
that when it comes to E-commerce, both businesses and consumers
expect similar shopping experience and assistance to manage their
purchases and decision making process.
As more and more E-commerce players enter the market and
competition becomes fierce, they attract and convert visitors on
the basis of differentiators such as class of service and shopping
experience. From product search to delivery, E-commerce enterprises
strive hard to deliver exceptional experience to win customers share of
mind and enable high brand recall.
In Gartners research report, Market Insight: Three Compelling
Reasons to Update Your E-Commerce Product Strategy, the figure on
the following page shows the top priorities of the CRM Programs (U.S.,
2012). This newsletter discusses the most important ones and focuses
on characteristics which can provide a convenient and engaging
customer experience, and thus, help enterprises meet or exceed their
customer expectations.
E-commerce Customer Experience Management is published by Cybage. Editorial supplied by Cybage is independent of Gartner analysis. All Gartner research is 2014 by Gartner, Inc. All rights reserved. All
Gartner materials are used with Gartners permission. The use or publication of Gartner research does not indicate Gartners endorsement of Cybages products and/or strategies. Reproduction or distribution of this
publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy,
completeness or adequacy of such information. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein
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integrity of Gartner research, see Guiding Principles on Independence and Objectivity on its website, http://www.gartner.com/technology/about/ombudsman/omb_guide2.jsp.
40.2
34.8
32.9
Customers browse products on the site and seek help to make the
purchase. When they call up the contact center, the contact center
executive has all the details of the shopper and what product he
is browsing. This, enables a quick connect with the customer and
provides a better personalized experience to the customer.
31.3
25.0
19.6
19.3
19.3
17.7
16.1
12.7
12.7
12.7
8.5
7.6
6.0
5.7
5.4
5.4
Improve pricing
2.8
2.8
2.5
1.3
2.5
0
10
20
30
40
50
Organizational silos
Percentage of Respondents
Source: Gartner Inc., Market Insight: Three Compelling Reasons to Update Your
E-Commerce Product Strategy, G00249052, 15 March 2013
Multichannel/Omnichannel Access
(Convenience in accessing digital commerce site)
Unify and centralize data across all touch points in such a way that
every touch point has access to customer activities and data.
Mobile Optimization
(Convenience of shopping through any device)
In todays mobile world, nearly one-fourth of E-commerce traffic
comes through the mobile channel, which includes smartphones and
tablets. Shoppers leverage smartphones for searching a product,
scanning the product barcode for prices, locating deals, getting
social reviews, purchasing products, and making payments etc.
The trend shows that mobile commerce is set to grow rapidly in the
coming years. Hence, it becomes a priority for E-commerce websites
to be mobile-friendly and optimized for delivering seamless user
experience.
Personalization
Personalization power
Advantages
Personalization can be used for the following:
Knowing your customers
Offer products and offers based on customer behavioral pattern
Bonding with customer to increase brand loyalty
Provide incentives to loyal customers
Segmentation and targeted marketing
Implementing effective customer engagement strategy
Site Experience
(Convenience of finding products quickly)
The changing world
In todays world, E-commerce is changing faster than any other
industry. E-commerce merchants are finding innovative ways to keep
customers engaged and are regularly reviewing the merchandising
and marketing strategies.
Source: Cybage
To provide better user experience, the first and most critical step is to
know your customers. Knowing their buying habits, purchase history,
purchase trend, and comfort level with sales channels will help in
providing a better experience to the customers, thereby, building a
strong and lasting relationship.
Some of the key questions to be clarified and answered for better user
experience are as follows:
o Search relevance
o Product categorization
Are they able to find the products they are looking for?
Sales aspect
o Customer assistance with product selection process
o Personalization
o Recommendationup-sale/cross sale
Major data points captured from analytics:
o Promotion/discount
Cart abandonment rate
Ability to purchase seamlessly
o Upfront cost breakup
o No hidden cost
o Few steps and quick data entry
o Easy payment options and faster checkout process
o Point and coupon redemption
o Quick confirmation
Customer Service
(Convenience of shopping without hassle)
Customer service in E-commerce has been a key focus area and a
very critical part of the business setup. While the traditional brick and
mortar offline businesses do have the luxury of interacting with the
customers in person handling concerns, and providing assistance with
a degree of personal and emotional connect, it becomes difficult for
the online businesses to provide the same. However, with technology
intervention and maturity around customer service products, there has
been a change in the customer service landscape. With every data at
their fingertips and a passion to serve, the contact center executives
understand the customers very well and retain them at every stage of
the sales life cycle.
The following sections explore various aspects of customer services
before, during, and after a purchase.
Before purchase
During this stage, a customer has the intent to explore and buy a
product that he is looking for. He looks for enough description, images
and supporting videos along with relevant reviews and ratings of
the product to enable and influence his buying decisions. Customer
service desk plays an integral part at this stage by providing enough
details about the product, playing the role of an advisor and educator
in terms of product usage, and answering any specific query the
customer might have on the product.
During purchase
At this stage, customers have zeroed in on the product that they
would buy and expect a very quick and hassle-free checkout process.
Customer service desk proactively engage the customer here if the
customer takes more than an average time on the product detail
or basket page. Click to call or contact center chat option should be
automatically invoked to assist the customer. Additionally, customers
might have questions around taxation, cost breakup, shipping,
warranty, return policies, and gift packing. Service desk should have
ready responses available to help the customer to quickly check out.
After Purchase
The customer service desk is more engaged during this phase. While
customers wait for their shipment or need assistance post-delivery,
their curiosity level is very high and any assistance at this stage has
a high and lasting impact on the customer in terms of his overall
experience about the merchant and service. Customers require
assistance from the service desk with the following:
Flexible Delivery
(Convenience with product delivery)
Delivery convenience is all about the wide range of options available
for product delivery as per the consumers convenience. With
changing times, delivery is no more monotonous, rather it is quite
diversified with its model and reaction time. At this time, customers
enjoy several options such as home delivery, delivery redirection,
store pickup, one-day delivery, and preferred time delivery. This
flexibility has changed the way consumers are used to receive
product deliveries and it is used as a distinguishing factor among
merchants. These methodologies elevate customer delight and
retention; however, it brings additional backend and logistical
challenges for the merchants. Merchants must have a data-driven
strategy on purchase forecast at the regional level and a sound
logistics team for last-mile delivery.
Source: Cybage
Order tracking
Last mile delivery
Return or replacement of the product
Assistance with modular product assembly
Troubleshooting
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Key Findings
Among U.S. digital shoppers, 42% prefer
online shopping because of convenience.
B2B customers also want marketers
to deliver a better digital commerce
experience that is similar to the one
delivered by B2C marketers.
A significant number of organizations have
initiated revamps to improve experience
on digital commerce sites. Gartners 2013
Digital Marketing Spending survey found
that digital commerce experience was the
No. 1 priority for marketers in 2013.
Most digital commerce experiences fall
short of meeting customers expectations.
Unexpected delivery costs, inadequate
information on the site, complex
navigation, and lack of online customer
support remain common complaints.
Recommendations
Experience your digital commerce site. If
it takes more than five minutes for you to
complete a purchase through a mobile
device, then conduct a full site assessment
for accessibility, user experience, delivery
options and customer support.
Use past purchase history, cart
abandonment data and Web analytics
to know your digital shopper. Specifically,
identify where they abandoned the cart,
why they came to your digital commerce
site, what their expectations were from a
digital purchase experience.
Develop a tight definition of convenience
based on digital consumer requirements
and digital commerce site objectives.
The definition should encompass priority
convenience attributes rather than a broad
set of nice-to-haves.
Analysis
Convenience by definition is the ease of
doing a particular task. E-commerce was
developed to provide the convenience of
purchasing goods and services online at
any time, from home and at competitive
prices. Today, this definition of convenience
does not suffice for digital consumers
their needs evolved with the proliferation of
mobile devices.
Digital consumers are highly connected
across multiple devices, make informed
choices and have an insatiable appetite
for experiences that augment the ease of
digital shopping. They want convenience
beyond an elemental online transaction
and at every stage of the purchase
journey. Even B2B consumers want
suppliers to move from traditional catalogbased ordering system to an online
ordering system that offers convenience
of anytime order placement, complete
product information, and order-tracking
facilities essential elements that B2C
consumers already expect.
For organizations, digital commerce
is a critical capability that will enable
differentiation in a digital world. Retail
giants Walmart, Amazon, Burberry and
the like are setting new standards for
digital commerce experiences. However,
after observing recent developments in
digital commerce site initiatives, we found
that a substantial proportion of B2B and
B2C organizations are still in the process
of laying the foundations for a convenient
commerce experience either through
setting up a digital commerce site or
revamping an existing one with better
experience. Consequently, there is a gap
in current customer expectations and
delivery of a convenient experience.
For a convenient digital commerce
experience, Gartner sees five key
characteristics expected by digital
customers today:
Future State
Within the next five years, advancements in
consumer technology will enable a continuous
commerce experience across multiple
commerce touchpoints physical locations,
social, mobile and wearable devices. However,
a digital commerce site that does not provide
a basic convenience experience will create a
substantial strategic liability for companies in
a highly demanding consumer-driven world.
Hence, we define the future state (next two
to three years) of digital commerce sites into
two parts: aspects that have been initiated
by organizations but require improvement
(site design, delivery and customer support)
and aspects that will become important
convenience components in the future
(personalization and multiple touchpoint
access).
FIGURE 1
Strategic Road Map Overview for Convenient Commerce Experience
Future State
Current State
Convenience expectations:
Intuitive user interface,
real-time customer support
and flexible delivery option
multi-touchpoint access,
responsive designs,
location-based targeting
Fundamental convenience
Personalization in product
Organizations introducing
recommendations,
customer service and
product/service delivery
expectations unfulfilled
revamps in digital
commerce sites with better
browsing/ navigation,
simple user interface,
extended product offerings
and new delivery formats
Gap
Understanding customer's
perception of convenience
Migration Plan
10
Current State
Organizations (B2B, consumer packaged
goods, media, travel, banking and luxury
retail) are setting up digital commerce sites
or revamping the existing ones to provide
more convenient experiences. In a 2013
Oracle study on B2C e-commerce, 41% of
respondents said they plan to invest in an
e-commerce platform while 38% plan to
invest in digital customer experiences.
A digital commerce site is no longer an
alternate sales channel or a transactionbased site. It is a channel through which
brands sell to customers, communicate
with them and learn about them with
the objective to create a strong and lasting
relationship. Each digital commerce site
may have a different focus: selling-direct-toconsumer (P&G, Kelloggs, and Step2), brand
extension in online channels (Disney, Fox,)
and showcasing customer centricity and
digital business focus (Citibank, Singapore
Airlines and JetBlue).
We studied the recent initiatives of companies
that have revamped their digital commerce
site experiences:
B2B (Airgas, Grainger, Step2,
CustomBoxesNow)
Media & entertainment (Fox, Disney, HSN)
Consumer packaged goods (P&G,
Kelloggs)
Travel (JetBlue, Delta Airlines)
Banking (Citibank, FNB)
Retail (Target, Fendi, Nordstrom, Walmart,
Target, Gap, Kohls, T.J. Max, Deb Shops,
Missoni, Mens Wearhouse, LOccitane,
Crabtree, Levis)
We found that these companies focus on
improving the convenience quotient of
digital commerce sites (see Figure 2).
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FIGURE 2
Current Focus Areas in Digital Commerce Site Experience
Current
State
Site Experience
Site Access
User Experience
(Intuitive, Better Search and
Navigation, Saved Search)
Mobile-/Tablet-Optimized Digital
Commerce Site
Aesthetic Appeal
(Rich Product Pictures and
Demo Videos)
Responsive Design
Robust Information
(Easy Language, Important
Product Details, Reviews,
Brand Content)
Current
State
Personalization (Product
Recommendation, Exclusive
Content and Personalized
Customer Service)
Flexible Delivery and Return
Current
State
Social Tie-ups
Share Purchase
Experience/Product Reviews on
Social Media
Current
State
11
12
Migration Plan
Spread out your planned improvements
over a three-year period. These stages will
not be in same order for all companies
some industries/organizations may have
already reached a stage, while others are just
beginning. However, the stages will hold true
for all organizations and can be used to plan
the progression from one level to another.
Time taken by each phase may vary
depending on implementation and current
state of digital commerce site. For the first
phase digital commerce site assessment,
six months may suffice to analyze gaps
and build a strategy to revamp the digital
commerce site. However, the second and
third important phases may take more than a
year to reach their goals.
The following section puts each stage in a
priority order only to indicate a logical
flow of projects and not to attach high/low
importance to any aspect.
Higher Priority
Digital Commerce Site Assessment
Decide the Purpose of Digital Commerce
Site
Ask yourself two key questions: Who are
you designing the site for, and what do your
customers want from this site?
If the main purpose is to sell directly to
consumers (consumer packaged goods and
retail), then focus on product offerings, quick
search/navigation, and information (product,
shipping costs, comparisons, delivery options)
and price. If, like Gatwick Airport, the main
purpose is to use information to comfort
customers in a physical setting (in this case,
airport), while monetizing the opportunity,
then focus on key content placement (flight
information, terminals, weather forecasts)
and visuals that ease customers overall
experience. If the objective is to use the digital
commerce site as an extension to existing
physical brand presence (Fox and Disney),
then focus more on creative and exclusive
website content and custom product
offerings.
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FIGURE 3
Strategic Road Map Timeline for Convenient Commerce
Focus on fundamental
convenience expectations:
Access, site design
and information
Introduce enhancements in
above areas and focus on
real-time customer support
and flexible delivery options
2013
2014
2015
2016
Drivers
Drivers
Drivers
Assess existing
experience
Introduce
improvements
Personalization
Need for
convenience at
each stage of
digital purchase
journey
Proliferation of
mobile devices
2017
Increasing
expectations for
personalization in
purchase
experiences
Increasing comfort
in sharing personal
information with
preferred brands
13
Medium Priority
Lower Priority
Personalization
Evidence
Hybris Study Finds B2B Purchasers Demand
Consumer-Like E-Commerce Experience,
Hybris, 15 November 2012.
Digital Marketers Escalate Investments to
Support Commerce Experiences, March
2013.
14
Note 1
Digital Commerce Terminologies
This Strategic Road map caters only to the
experience derived from a digital commerce
site and not digital commerce as a whole
(social, mobile or wearable devices). Gartner
will publish additional strategic road maps
for combining various digital commerce
channels and to creating a continuous
commerce experience.
E-Commerce
Buying and selling of goods and services
over the Internet via electronic devices with
the sole purpose of completing a transaction.
Digital Commerce
Different online commerce channels
woven around a digital commerce site, not
necessarily interconnected, offering multiple
touchpoint access for information and
purchase and with high emphasis on site
navigation and aesthetics.
Digital Commerce Experience
This is a highly interconnected process
of searching, evaluating and purchasing
products and services across digital and
physical sales channels without a predefined
path to purchase. The experience thrives
on the necessity to access product/service
information throughout the buying journey,
flexibility to make the ultimate purchase
from a variety of commerce routes, alternate
delivery between online-offline channels and
ability to share/receive experience across
customer networks.
Gartner RAS Core Research Note G00252535,
Aparna Bajaj, Allen Weiner, Laura McLellan,
19 December 2013
About Cybage
Founded in 1995, Cybage Software is a leading offshore software services company, offering
solutions that accelerate, simplify and enrich business processes to give its clients an edge
over competition. We are an SEI-CMMI-DEV v1.3, Level 5 and an ISO 27001 company based
in Pune, India. Our success is built on a pool of 4,800 software professionals. Based on a
remarkable record of quality, consistency and outstanding technological prowess, we have
partnered with more than 200 global software houses of fine repute. Our array of services
includes Outsourced Product Development (OPD), enterprise business solutions and valueadded services. Cybage specializes in the implementation of the Offshore Development model.
The domain expertise of Cybage spans across several business verticals such as Media and Entertainment, Travel and Hospitality, Healthcare
and Life Sciences, Retail and Distribution and Hi-Tech. Cybage has eight defined technology focused Centers of Excellence (CoEs): E-commerce,
Enterprise Mobility, Customer Relationship Management (CRM), Business Intelligence (BI), Enterprise Content Management (ECM), Cloud Computing,
E-learning and Supply Chain Management (SCM). Our unique model of operational efficiency, ExcelShore, helps de-risk our approach and
provide the best value per unit cost.
Headquarters:
Cybage Software Pvt. Ltd.
Cybage Towers,
Survey No. 13A/1+2+3/1, Vadgaon Sheri
Pune 411014 India
Phone: +91-20-6604-1700
E-mail: ecommerce@cybage.com
Additional Development Centers:
India, Pune, Hyderabad, Gandhi Nagar
The United States, Redmond, Washington
International Sales and Engagement Offices:
Edison, NJ | Atlanta, GA | Austin, TX | Fremont, CA | London, UK | Frankfurt, Germany | Sydney, Australia
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