Online retailers should focus more on the experience of customers using their website, as opposed to efficiency, if they want to build customer loyalty…
This is according to new research by Durham University Business School. The researchers said that today’s online customer craves more than just convenience and a smooth shopping experience; they seek one that is also immersive and interactive.
Conducted by Markus Blut, Professor in Marketing and International Business at Durham University Business School, alongside a number of co-authors, the study seeks to understand the shifts in online retail, and whether customers valued an efficient shopping experience, or a more immersive and interactive shopping experience.
To do so, the researchers analysed a database that taps into more than 20 years of website attribute effects, covering almost 120,000 consumers over 25 different countries.
Then, by using an analytical model, the researchers divided each website attribute into either an efficiency or experience category, and tested whether or not these had built customer loyalty.
The researchers found that efficiency helps to build trust with consumers, as well as value and satisfaction with the service, they said, but this only keeps customers loyal if it continues to always be the case – it does not breed loyal customers.
However, providing an immersive experience on the website is more likely to have an immediate, direct impact on the loyalty of the customer, as consumers who enjoy shopping with the online retailer will come back again. This is something that simply focusing on efficiency cannot recreate.
“With consumers more and more likely to be suffering online fatigue, it’s becoming harder to grip their attention and truly captivate this audience,” said Professor Blut. “Online retailers like Amazon have certainly had success by offering a good, efficient service, but this is something smaller online retailers will not be able to compete with. If they want to secure a loyal following, they have to be offering them an immersive experience.”
The research was conducted alongside colleagues from Sheffield University Management School, Vrije Universiteit Amsterdam, Darla Moore School of Business, Babson College, University of Bath and Tecnológico de Monterrey.
