The Quick-To-Ditch Consumer Mindset And How Retailers Can Cope
By Mitch Doust, Cover Genius
It’s no secret that consumer power is on the rise. With instant access to information, today’s shopper has become smarter, better prepared for purchases and more informed than ever before. A hyper-personalized experience is no longer seen as a benefit, but an expectation. Many have adopted a “quick-to-ditch” mindset, meaning that if they aren’t immediately satisfied with what’s presented, they’ll quickly lose interest and move on. It’s become one of the largest challenges facing online retailers and e-Commerce companies today.
So how can e-Commerce companies create more captivating and impactful experiences? The key differentiator is CX. Translation: consumer experience. Within these two little letters lies boundless opportunity.
Sharpened expectations mean that businesses must elevate their customer experience if they plan on surviving consumers’ increasingly fleeting attention spans. There’s an immense amount of pressure on brands to create personalized experiences that strike the attention of shoppers from the get-go. Firstly, customers must have peace of mind in their online transactions as e-Commerce continues to grow across all vertices. Retailers can guarantee this through secure payments, world-class returns and seamless insurance offerings.
Retailers should keep their eye out for a few trends. For one, we’re seeing innovation within payments, such as the emergence of “buy now, pay later” services. Platforms like Afterpay and Affirm will become more mainstream. Implementing innovative payments will entice new customers, especially Millennials who expect to pay when, where and how they please.
We’re also seeing personalization on the rise. More brands are serving up unique experiences tailored to specific customers, whether via insurance policies made specific to the product being purchased, or by providing returning shoppers with special experiences that acknowledge repeat purchases. The key here is making the path to purchase all the more seamless for shoppers.
In terms of cutting-edge tech developments, the emergence of voice commerce (Alexa, we’re talking to you) will only grow in the coming year. Voice-enabled technology will garner even greater wallet share as e-Commerce platforms infiltrate into the everyday essentials line of retail. As voice search commerce expands, the convenience of ordering staples like monthly toilet paper to a digital shopping cart will deliver next-level customer experience and convenience.
In the same vein of personalization and convenience, we should also examine the insurance sphere. You can kiss comprehensive, one-size-fits-all policies goodbye. Wins for e-Commerce brands will come in the way of tailored policies and satisfied, loyal customers. Providing the right product at the right time puts consumers in the driver’s seat and provides peace of mind. A jet-setter spending their winter in Aspen would have a much different offering than a tourist embarking on a summer trip to Santorini. The appeal comes from the ability to tap into the underwriting framework to offer a bespoke policy to customers — one that’s in their native tongue, preferred currency and on their platform of choice — be it iPhone, tablet or laptop.
New technology-powered insurance providers offer a customer-centric approach, creating happier customers that benefit from world-first features like instant payment of claims or removal of excess on policies. Moving forward, e-Commerce companies will need to find insurance partners at the bleeding edge of customer experience to remain future-proof against the changing tides of customer demands.
Ultimately, to combat the quick-to-ditch mindset that online retailers are facing today, it’s going to take e-Commerce companies investing in best-in-class customer experiences. This may come in the form of innovative payments, personalization, world-class returns or insurance offerings. Whatever the case, consumers will no longer accept a generic one-size-fits-all approach. Shoppers want tailored experiences marketed directly to them as individuals. Understanding the customer and working at scale to deliver enhanced personalization is what will eventually set retailers apart.
Mitch Doust is EVP and Head of the Americas for Cover Genius, where he is responsible for the establishment and growth of the XCover platform and the broader Cover Genius business across North America, Canada and Latin America. Doust recently joined Cover Genius from insurtech company Trov, where he was Global Head of Business Development and led the establishment of Trov’s global network of insurance partnerships. Prior to his move into technology, Doust began his career with EY in Australia before moving to the Suncorp Group, where he held a number of strategic roles including P&C strategy, venture investing and strategic innovation.