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It may not be a finding solely of relevance to the lifestyle or fashion sectors, but it is nonetheless one that will make intriguing reading for many clients of our luxury ecommerce agency: most UK retailers (63%) still lack the capabilities to re-engage customers after checkout.
Despite this, over three quarters (78%) of respondents to a poll recently reported by Fashion Network identified post-sale engagement as the start of the next purchasing cycle. So, there is clearly recognition of the importance of this process for driving further custom and growth.
This judgement is backed up by another finding of the research, that in the view of as many as 49% of customers, receiving personalised offers in post-purchase tracking communications boosts the likelihood of them becoming a repeat customer.
Retailers could be missing out on vital revenue opportunities
Carried out by data, market research, and advisory company Savanta, the research sought the views of 123 retailers in the UK – encompassing large and mid-market players – in addition to questioning 1,000 UK adults.
The finding of many UK retailers’ present inability to engage with consumers again once they have made a purchase, raises questions of whether they are doing enough to tap into the full potential of this stage of the sales loop.
According to the Fashion Network report, on a year-on-year basis, consumers are becoming more positive about the prospect of receiving offers after they complete a purchase. Half of respondents (50%) said that personalised offers increased their confidence in the brand they are buying from, with this measure being 6% up on the situation in 2024.
Another 45% of those questioned, agreed that personalised offers in updates would heighten the likelihood of them trying new products or ranges from the given retailer. This reading, too, has gone up, by 5%.
But are merchants in the UK actually ready to capture such receptive customers?
It seems that in a lot of cases, the answer to this question is “no”. The report stated that a mere 33% of mid-market retailers, and just 41% of much larger firms, deployed solutions to retarget shoppers between checkout and “final-mile” delivery, which is when customers are at their peak level of engagement.
This underwhelming finding comes despite over three quarters of the retailers agreeing that post-purchase is gaining the status of a revenue-gaining channel for business.
It will certainly interest many past, present, and prospective clients of our luxury ecommerce agency, to read that 47% of all retail businesses questioned could provide visibility of, and customer updates on, the entire delivery journey.
However, just 26% of the polled firms pinpointed the ability to retarget customers with new marketing messaging as one of the advantages of post-purchase communications.
Having said all the above, there is also evidence that shoppers can sometimes feel overwhelmed, and even annoyed, by overly frequent and enthusiastic post-purchase communications.
For instance, it was discovered through the study that 57% of customers were happy to be given personalised offers in updates, but only if they were able to opt out of ongoing brand communications once their item had arrived.
An additional 57% of the questioned shoppers stated that they were happy to receive offers if they are not sent such promotions too often.
Are you making the most of your luxury, lifestyle, or fashion brand’s online presence?
Very few e-tail and marketing experts have a track record of achieving steady and sustained growth for their client brands, on a par with the results attained by Skywire London’s own ecommerce professionals.
To learn more about how you can work most effectively alongside the creative, digital, and strategic specialists who make up our luxury ecommerce agency, please don’t hesitate to contact our team in the UK capital.
Photo by Euronewsweek Media on Unsplash
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