Online retailers are setting a digital example but can’t afford to stand still

Online retailers are setting a digital example but can’t afford to stand still

65% of consumers have stated they would be willing to try a new digital service from online retailers

It has never been easier to purchase all kinds of goods through digital channels. Not only can consumers access pretty much anything, anytime, anywhere, it is also likely it will be delivered within hours. Yet the ease in which these transactions can take place has caused a little controversy with those who believe it’s become too easy for people to spend their hard earned money. Whatever moral stance you take, I believe it should be viewed as a compliment. In no other industry would it be “too easy to pay a bill” or “too easy to book an appointment” for a service. The truth is consumers are getting used to the speed and ease in which they can navigate digital channels seamlessly in the online retail space. 

What is more, they are hungry for new experiences. According to our Demanding Digital research, 65% of consumers have stated that they would be willing to try a new digital service from online retailers. This is higher than any other sector, with the average around half (52%).

The proof is in the figures. One in four pounds was spent online during the November 2016 Black Friday sales. Driven mainly by an increase in shopping on mobile devices, this also represented the third consecutive month of double-digit online sales growth. This has undoubtedly contributed to consumers in the UK putting online retailers as their number one digital service provider. Over a quarter (27%) ranked it first out of ten sectors, above financial services and even technology companies.

In many cases, online retailers are setting a digital example, however even online retailers can’t afford to stand still. While many of the services they offer are seen to be fit for purpose today, consumer expectations are always advancing, which means evolving digital services to match their needs is vital to continued success.

Our research also revealed that despite 69% saying their digital experience with online retail was ‘good’ or ‘outstanding’, 28% stated they “expect more in general when dealing with them.” In a way, online retailers are at risk of becoming victims of their own success. Whereas a few years ago 3-5 days delivery would have been good, consumers now expect far more. Successfully dealing with the “last mile” challenge through digitally integrated services such as one hour fulfillment and click and collect, means retailers must now look beyond the ordinary and stand out from the competition.


This speed is important – consumers expect things will happen quickly and for digital technologies to make their lives easier. 57% think that within five years white goods and appliances will automatically create shopping lists for food and other items when they run out.

Personalisation is necessary, but on their terms. Online retail must step away from relying on cookies and user data alone if it is to maintain such strong growth. Consumers have become wise to this trick and not only are they becoming more vocal about when to draw the line, but they are actively stopping such tools. There is a current perception that “digital services are usually designed to make life easier for an organisation rather than their customers” – cited by 51% of our respondents, and this has to change if online retailers are to deliver on the promise that they are putting the customer first.

This means going beyond just loyalty points and targeted promotions. Instead, retailers must focus on developing technology that will genuinely help customers and improve their experience. Artificial Intelligence, in the form of chat bots, is going some way towards providing the sort of personalised expert advice consumers seek. A great example of this is Pizza Express’ Facebook chat which allows you to reserve a table without even having to leave the social media platform. While it uses consumer data, there is a clear benefit to the consumer in using it that goes beyond just feeling like they are being sold to.

It is questionable as to whether it will ever fully meet consumers’ needs to the same degree as a face-to-face interaction can, but what’s for sure is that it will undoubtedly strengthen the overall credibility and trust of the brand through more meaningful interactions.

Putting consumers at the heart of the digital experience will not only lead to greater engagement and the knock-on short term revenue gains, but also longer term benefits, such as an increase in brand reputation and trust. As markets converge, being able to diversify into other key areas of the retail industry – like Tesco and Amazon have done – is becoming more important and brand reputation is a vital ingredient to successfully doing so. That said, as an industry, online retail still has some way to go. When we asked who consumers would trust with their entire digital life, only 5% said an online retailer. To put this in perspective, 65% said a bank.

There is a huge opportunity for online retail to capitalise on its success over the past few years, but to do this it must continue to place consumers at the very heart of what it does. Applications of new and exciting technology, such as virtual reality and artificial intelligence are already taking place in the online retail world. The exciting part is that consumers are willing to try new experiences. The key will be implementing it in a way that continues to excite them and makes the process quicker or easier. By bringing added convenience to their lives, new technology can build on the customer experience they are already accustomed to. 

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