How to develop customer relationships in e-commerce: A new approach in 2024. #3

In recent articles such as ‘What challenges and strategies in e-commerce are worth considering in 2024. #1‘ and ‘How electronic payments and the development of Commerce Media in 2024 will affect e-commerce. #2‘, we’ve discussed a range of important aspects and challenges that e-commerce companies will face in 2024. To recap, we focused on issues related to the supply chain crisis and its consequences for the industry (1).

We mentioned that ecological trends are gaining strength and significance in the future world, creating the Green Shopping strategy (2). We also discussed the evolution in electronic payments, as an important element in completing purchase transactions (3), and actions in Commerce Media (4), as a novelty that is gaining strength and will play a significant role in the development of e-commerce worldwide.

Today, we will focus on two extremely important elements, which, if overlooked by an e-commerce company, may exclude it from the market. Today and in the coming years, customer service, combined with many conveniences, will play a key role in the development of every business to develop proper relationships with customers in e-commerce. We will also learn what retention is and how it contributes to maintaining a loyal customer in the company. These are new standards in customer service in e-commerce.

Customer service standards, as the key to loyalty in e-commerce.

The importance of customer service quality.

The customer service area is one of the most important elements of any company, regardless of the industry. In the case of e-commerce, customer service is particularly important because customers do not have the opportunity to directly contact the product or service before purchasing. Therefore, it is crucial to provide them with friendly and helpful support that will help them make a purchase decision and solve any problems if necessary.

The quality of customer service not only affects customer satisfaction and loyalty but also the overall image and success of the company. An unsatisfied customer will look for another store to place their orders. Large companies such as Allegro, Amazon, or the rising Temu in Poland are forcing changes in customer service. These changes can be seen in that customers currently expect:

• Quick and preferably immediate delivery, ideally on the same day or the next,
• They expect perfect, flawless, and effective communication from customer service.
• The way of managing opinions and disputes arising during the fulfillment of orders by the customer is also changing.
• They expect an easy return process when the purchase is not right and to return the goods at no cost.

Market giants in this way steer the market, create trends, set new directions for changes in the e-commerce sector. They gradually and effectively create new customer habits, shaping their preferences and behaviors. Other companies, wanting to stay in the market, need to adapt to these changes as quickly as possible.

Customer Service Trends in 2024.

It is predicted that the following changes will be visible in customer service in 2024:

• Personalized customer experiences. Customers expect customer service to be tailored to their individual needs and preferences. Companies will use technologies such as artificial intelligence and machine learning, predictive strategy, to better understand their customers and offer them more personalized experiences. I would call it this way, it's like placing products under the customer's nose, which the customer is interested in. It has its advantages.
• Omnichannel. Or reaching the customer through multiple channels. Customers want to be able to contact customer service at any time and place, using any channel. Companies will implement omnichannel solutions to provide customers with consistent experiences across all channels.
• Automation. Companies will use automation for repetitive tasks, such as answering customer questions or solving problems. Automation can help companies improve customer service efficiency and reduce costs, then employees can focus on more complex issues that have not yet been recognized and require more involvement.
• Emotional intelligence. Customers expect customer service to be empathetic and understand their needs. Customer service employees should be trained in emotional intelligence to better deal with difficult situations and build positive relationships with customers. The idea is for the customer to be better understood and served in terms of his problem.

Examples of changes introduced by companies in customer service.

Marketing in e-commerce in the digital age is transforming, using digital tools and collected data to create more targeted and personal campaigns. Effective marketing in e-commerce is no longer limited to increasing sales but includes building a brand, engaging the community, and creating long-lasting relationships with customers. Appropriate tools are needed for this. Here are some of them that you will be able to observe as they develop even better in 2024:

Customer service through chat: Companies are increasingly offering customer service through chat. It is a convenient solution for customers who want to get help quickly and without the need to wait for a phone call. What is important in this matter is the quick response of the customer service operator. A long wait for a response is currently very irritating for the customer.

Chatbots for customer service: Companies are increasingly using chatbots for customer service. Chatbots can be used to answer customer questions, solve problems, or even make sales. Remember that the conversation is with a machine that has learned issues on the most common problems from the customer’s side.

Prediction in understanding the customer: Companies are implementing data analysis solutions to better understand the needs of their customers. These data can be used to personalize offers and communication with customers.

Self-service problem solving by the customer: Companies are increasingly offering customers the opportunity to solve problems on their own. For example, companies can provide customers with knowledge bases or self-service tools.

The Importance of Customer Service Quality.

Once someone created a law that one satisfied customer can tell and interest 3 people in buying at the place where he himself bought, an unsatisfied customer will tell 11 people at the same time. Whether it’s true or not, each of us knows and applies it every day, that we more often tell friends about what we are not satisfied with than about something we are satisfied with. Either way, we share our impressions with friends, some of them make purchasing decisions based on our story.

It is important that customer service in the company is constantly developed and that its professionalism is continuously developed. Exceptional and excellent customer service can become a decisive factor that directly translates into building greater customer loyalty. In an era of easy access to competition, companies that offer fast, helpful, and personalized service gain a market advantage. Recommendations and customer reviews, which are very easily available online these days, can significantly affect the purchasing decisions of potential customers.

Positive customer experiences with service have a direct impact on the company’s reputation. Therefore, it is important that people working in customer service continuously improve their qualifications and professionalism and are courteous, empathetic, and effective in their actions towards customers.

Customer Retention as the Key to Growth.

What is customer retention? Customer retention is a fundamental aspect of e-commerce and plays a key role in the long-term success of every online business. Retention refers to a company’s ability to retain customers over a longer period and encourage them to make repeat purchases. In the context of e-commerce, effective customer retention translates into increased loyalty, purchase frequency, and average order value. It also contributes to the long-term growth and stability of the company.

The Importance of Retention in E-commerce

Increasing profitability. Companies that focus on retention often experience higher profitability because the costs of retaining a customer are lower compared to several times higher costs of acquiring a new one. The availability of appropriate tools in the company and the ability to conduct conversations by people in customer service can significantly increase profitability. In today’s times, with intense competition and high advertising costs, focusing on retention is more profitable. Retaining customers has a direct impact on increasing their long-term value.

Building customer loyalty. Customer retention is closely related to building loyalty. Customers who return regularly often develop a stronger bond with the brand, which can lead to recommending the company to others and creating positive reviews, which in turn encourage other customers to shop in a given online store. Loyal customers are more likely to make repeat purchases and usually spend more in the long term and are more willing to recommend, especially when there is an attractive loyalty program implemented by the company.

Strategies for Building Lasting Customer Relationships to Increase Retention in E-commerce.

Every company that wants to systematically conquer the market or stay in the market needs to develop. Qualified customer service is key here. Man alone is currently not able to cope without the help of technology and the definition of a strategy. Everything must be well organized so that the processes started from contact with the customer to satisfy his claims and needs make sense and have their logic and, most importantly, to remember about the started process and finish it as soon as possible. Here are some strategies that facilitate communication with the customer.

• Personalized Communication: Communication with customers should be personalized and respond to their individual needs. Using customer data to tailor messages, offers, and product recommendations increases engagement and satisfaction.
• Personalization of shopping experiences. Tailoring the offer to the individual needs and preferences of customers can significantly increase the chances of their return. Using data on purchasing behavior to personalize communication and offers is key.
• Loyalty Programs: Loyalty programs, offering rewards for repeat purchases, are an effective way to build relationships and encourage further transactions. This is one way to build long-term relationships.
• High and excellent quality of customer service: High quality of customer service, including fast, efficient, and effective response to inquiries and solving problems, is crucial for maintaining customer satisfaction. Additionally, it is important to apply easy return and complaint processes, as this can significantly contribute to greater satisfaction of the loyal customer.
• Regular analysis and feedback: Regularly conducting customer behavior analysis and collecting their opinions can help adjust the offer and services to their expectations.
• Regular communication. Maintaining regular communication with customers through email, social media, and other channels can help keep the brand in the customer’s consciousness.
• Using Technology: Tools based on AI and data analysis can help in identifying shopping patterns and customer preferences, allowing for a better understanding of their needs and expectations.

Summary: How to Develop Relationships with Customers in E-commerce: A New Approach in 2024.

The quality of customer service in e-commerce in 2024 is not just a matter of effective communication, but also adapting to changing customer expectations and the use of modern technologies. Personalized experiences, omnichannel, automation, emotional intelligence, and technologies such as artificial intelligence and machine learning are key elements that enable companies to build deeper and more valuable relationships with customers. With the advancement of digitalization, customer retention and building loyalty become not only indicators of success but also the foundation for long-term profitability in the dynamically changing world of e-commerce.

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