The last four years have seen an exodus by household names such as Birkenstock, IKEA, and Nike from powerhouse marketplace Amazon. Once considered a “must-have” channel in any successful selling strategy, the high-profile exits from the world’s top online marketplace were each triggered by their own catalyst, but all of which centered around customer experience.
Nike withdrew from Amazon citing its desire for more direct, personal relationships with its own customers. Birkenstock pulled its products from Amazon’s virtual shelves due to concerns of brand dilution that arose from counterfeit products and predatory pricing from third-party retailers.
While these withdrawals have not had an impact on Amazon’s position as the world’s top online marketplace, they provide important learnings for both brands and marketplaces here in Asia looking to develop effective customer experience strategies.
Marketplaces still a significant part of the shopping experience
The e-commerce industry continues to be dominated by marketplaces that play a vital role in the shopping journey. A study on the Southeast Asian e-commerce industry revealed that 89 per cent of online purchases in Singapore takes place via marketplaces– even if select brands chose not to list their products, marketplaces remain crucial to an ecosystem that sees brands and marketplaces mutually dependent on each other for their survival.
For brands, particularly smaller businesses, marketplaces provide existing infrastructure and audiences that can immediately be leveraged.
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Marketplaces, on the other hand, need a wide collection of sellers. From these small businesses to large, well-known brands, variety is essential to provide the range of products needed to attract and retain their audiences.
After all, today’s shoppers are savvy and compare offerings, selecting preferences based on a range of criteria including price and customer experience.
How brands and marketplaces can deliver a seamless customer experience
Both brands and marketplaces alike are realising the importance of the overall customer experience. This has seen 89 per cent of companies shifting to a model of competing primarily on the basis of customer experience. As partners, the onus is no longer only on the brands to deliver this experience, but also on the marketplaces, as an extension of the brands.
With this in mind, there are three key things both brands, as well as marketplaces, need to keep in mind when looking to deliver a seamless customer experience.
Deliver a strong brand experience across every touchpoint
The best customer experience is one where every customer who has ever interacted with the brand is able to communicate exactly who the brand is and what they stand for.
Customers should receive a consistent image and experience, no matter if they are purchasing from a retail store, the brand’s website, or a marketplace. This speaks to the products listed, language used, pricing strategy and overall interface.
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Take, for example, Apple which has become synonymous with the clean, white aesthetic, and conversational tone of language across all their touch points – from the Apple Store employees, to that moment you turn on your Apple product and see “hello” for the first time.
A strong overall brand experience enables brands to inspire confidence and build stronger, sticky relationships with their customers.
Leverage data for a customised experience
Brands and marketplaces today have access to more customer data than ever before, whether through their websites, or their social channels. This also means that the customer of today expects more from brands and marketplaces than ever before, seeking an experience tailored to their needs and wants.
This makes it imperative for all players to leverage this data, responsibly, and in a way that complies with the Personal Data Protection Act, to deliver a personalised experience for each shopper.
Whether displaying suggestions for products they may like or timely reminders on items they have purchased regularly, each personalised aspect of the experience builds loyalty from customers inundated with options.
Recognising the importance of customer experience, J&T Express works with our partners to equip them with insights around buying patterns of their product category segmented by location.
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For example, Orbis, a collagen drink brand was looking for advice on their customer outreach strategies. Leveraging the data collected, we understood that Singapore was home to many customers who purchased consumables within the Health & Beauty category.
With this information on hand, Orbis was able to identify their target audience and potential opportunities within Tampines, and further amplify their presence through targeted offline sales events and delivering the right offerings to the right audience. This led to a month-on-month sales growth of 223 per cent supported by a median growth rate of 200 per cent within a seven-month period.
Delivery partners are another extension of your brand
A recent study by J&T Express found that the two most important factors to shoppers in Singapore are having their parcel delivered safely and in good condition, and the cost of delivery.
In fact, 83 per cent of respondents indicated that the overall delivery experience would determine whether they would make a repeat purchase with the same retailer.
As an extension of brands and marketplaces, the responsibility falls on delivery partners to implement the necessary processes to deliver these parcels on time and safely, helping to encourage a repeat purchase by the consumer.
They also need to cater to the changing needs and preferences of consumers who seek convenience and flexibility from their delivery options. Understanding this is key to the experience of our partners’ brands, we offer a range of delivery services, 365 days a year.
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Aside from express door-step delivery, our growing network of more than 1,000 collection points island-wide ensures that customers have greater control over their delivery experience. We also offer delivery for our customers seven days of the week, a first in Singapore.
Seamless experiences will help brands and marketplaces rise above
In an increasingly crowded market space where customers are spoilt for choice, it is a seamless customer experience that will help brands break through and retain the attention and loyalty of an increasingly savvy audience.
By focusing on creating the most seamless experience possible, throughout the customer journey and in collaboration with delivery partners, both brands and marketplaces can ensure they stay ahead of the very tight e-commerce race, whether alone or together.
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