Winning shopping journey in Asia MONIclients.monimedia.net/moni/...journey_in_Asia_MONI.pdf · in...
Transcript of Winning shopping journey in Asia MONIclients.monimedia.net/moni/...journey_in_Asia_MONI.pdf · in...
HOW TO CREATE SUPERIOR CUSTOMER EXPERIENCES
AND INCREASE ROI
WINNING THE ONLINE
SHOPPING JOURNEY
IN ASIA
The retail industry has witnessed the emergence of
two key trends in the last decade: shoppers got
digital, and brands have gone direct-to-consumers.
New technologies and innovations have fueled
changing consumers expectations and behaviour,
forcing brands to change and adapt across the globe.
Asia’s B2C eCommerce market is estimated to
amount to US$1,298,002m in 2020, with an expected
annual growth rate (CAGR 2020-2024) of 7.3 percent,
resulting in a market volume of US$1,723,698m by
2024, according to Statista. The region alone takes
up 58 per cent of the eCommerce market worldwide
(US$2,237,959m)1.
The APAC market takes a significant share in the
realm of eCommerce, with no signs of slowing down.
This does not mean brands can sit back and see their
sales grow. The upward trend is also coupled with
intensifying online competition, steepening ad costs,
and ever-changing consumer behaviours. This leaves
brands with a heavier challenge to improve
customers’ experience across the entire journey.
US $1.3 Trillion
with 7.3%Expected Annual Growth Rate
Asia B2C eCommerce Market Size
21. | https://www.statista.com/outlook/243/101/ecommerce/asia
CUSTOMER EXPECTATIONS TODAY
STEP 1
Landing On the Site
STEP 2
Browsing Products
STEP 3
Considering a PurchaseOnline
STEP 4
Shopping O�ine
STEP 5
Checking Out
STEP 6
Order Fulfilment
Today's customers have higher expectations for quality
service and fair pricing, especially compared to a
decade ago. Customers now want personalised
interactions and connected experiences across their
journey. According to PwC, 86% of buyers are willing to
pay more for excellent customer experience2. These
expectations continually evolve and expand with
technology.
With a wide array of choices and technology at their
fingertips, it's easier for customers to compare products
and brands. It's also easier to switch brands to seek
experiences that match their expectations.
The online space is undoubtedly a critical and
indispensable part of shaping of a customer’s
experience. This whitepaper focuses on highlighting
the di�erent stages when Asian customers' weave
through eCommerce sites and o�ine retail, and to
point out key areas where brands should act to win
over customers as competition intensifies.
32. | https://www.pwc.com/us/en/advisory-services/publications/consumer-intelligence-series/pwc-consumer-intelligence-series-customer-experience.pdf
STEP 1
LANDING ON THE SITE
SolutionExpectationWant Smartphone-Ready,
Fast-Loading and Relevant
Content
Fast Loading to Prevent BounceThe modern-day shoppers’ attention span is short.
They expect immediate availability of information with
digital devices and online. Research by Google shows
53% of visitors will abandon a mobile website if it takes
longer than three seconds to load, and each second
delay in loading has been associated with a 7% drop in
conversions3. According to Magento’s 2019 APAC
survey, over one in three customers expect the site to
load quickly.
Mobile Readiness for the Mobile-First RegionOn top of fast loading speed, it should not come as a
surprise that consumers also expect eCommerce sites
to be mobile-friendly. This is particularly more important
for Asian consumers as it is a mobile-first region.
A 2018 International Post Corporation (IPC)
Cross-Border E-Commerce Shopper Survey revealed
that 52% of Asian customers prefer smartphones for
online shopping, compared to 33% of the total global
average4. In Magento’s 2019 APAC survey, almost 40%
of customers said they want a retailer's website to work
seamlessly on smartphones5.
Content Relevancy is KeyA visitor could land on a brand’s eCommerce site
throughout di�erent stages of their purchase journey,
and from di�erent channels. Maybe they're conducting
initial searches on Google, comparing prices from a
blog article or go directly to a site to purchase. It is
essential to match your online store with the content
visitors expect to see, otherwise you risk losing
customers.
Progressive Web Apps Mark the Next Evolution in Mobile-Driven CommerceTodays’ tech-savvy Asian shoppers’ experiential
demands on mobile experiences can be met with
Progressive Web Apps (PWA). PWAs mark the next
evolution in mobile-driven commerce. They are
websites that behave like native apps, allowing
shoppers to enjoy an intuitive, immersive browsing
experience, faster speeds and push notifications.
Platform Speed to Handle Large SitesTop platforms can help optimise speed regardless of
tra�c fluctuations, as well as map user activities. One
example is Magento’s Content Delivery Network (CDN)
Fastly.
CDN Platforms like Fastly help:
• Provide personalised suggestions by serving more
content from cache, like shopping cart information or
other details.
• Instantly and automatically remove stale content to
ensure that customers see accurate inventory,
catalogue, and pricing data.
• Absorb tra�c spikes, so the website won’t go down,
even during flash sales, peak seasons, or a
Distributed Denial of Service attack.
Map Site Contents with Customers Journeys in MindWhen revamping a site or building a new one, be sure
your new site navigation and content uses insights
from your customer journey map. This helps ensure
that the relevant content gets displayed when your
customer comes to the site through di�erent channels.
For example, you want content that talks about
marathons, fun runs and the latest trends for your loyal
female runners browsing your athletic shoe website.
52% of Asian customers prefer smartphones for
online shopping
Now that customers are staying on your site,
WHAT’S NEXT?
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3.
4.
5.
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https://www.thinkwithgoogle.com/marketing-resources/data-measurement/mobile-page-speed-new-industry-benchmarks/
https://info2.magento.com/rs/585-GGD-959/images/Magento_Consumer_Insights_APAC.pdf
https://www.ipc.be/news-portal/e-commerce/2019/04/11/09/37/online-shoppers-in-asia-give-a-glimpse-of-an-e-commerce-future
STEP 2
BROWSING PRODUCTS
Solutions
Consumers Want Easy to
Navigate & Personalised
Suggestions
Personalised Recommendations are
2x More Effective
InsightYour Visitors Are Looking for
Information
So, what are visitors doing on a site if the majority of
them do not convert? Depending on the sector and
type of product, a consumer can use six to 10 di�erent
sources and think up to months before making a
purchase.
Knowing that the majority of visitors seek information,
your website needs to meet customers' expectations
and match their browsing behaviours to drive them
down the sales funnel.
Magento’s survey reveals that 32% of APAC customers
said website and in-app experiences should be great
whenever they shop, and 31% said that the website
should be easy to use and navigate - with a good
search function and ease of finding what they need4.
For 27%, it’s important that when they shop online, the
website gathers data to suggest products they might
like. However, brands must be careful in handling data
when triggering product suggestions because if a
retailer suggests a wrong product, 20% would stop
using the retailer’s eCommerce website.
99% of Tra�c Does Not Convert
Transfer Retail Store Experience OnlineShoppers' core behaviours are very similar in both
online and o�ine, even if their environment is di�erent.
When a customer steps into a retail store they have an
intention in mind, like finding a dress for a birthday
party. A customer will browse to find a product, asks
sales sta� for suggestions and where to find what they
want. Similarly, on eCommerce sites, a visitor either
navigates through menus to get to the best section, or
uses search. In both instances, they expect to see
suggestions for the 'best party dresses'.
Your eCommerce site needs to fulfil visitors’ search and
suggestion needs — the same way a top sales
associate does in a brick-and-motor store.
Advanced Search Powered by Artificial IntelligenceThe search experience can be enhanced with smart AI
and image search, which is getting more common
among fashion retailers and marketplaces. Today’s
consumers — especially those between the ages of 18
to 34 — show a growing interest in using visual search
and image recognition in order to discover new brands
and products.
Enhanced Shopping with PersonalisationBrands can explore displaying dynamic content based
on previous purchase behaviour, tra�c source,
geo-location, demographics and other captured data.
Just like retail sales sta� o�ering product suggestions
in-store, your eCommerce site can provide the same
service, powered by AI.
Research agency Barilliance has found personalising
recommendations made them 2x as e�ective as
non-personalised recommendations, and customers
who click on recommendations have a 70% higher
purchase rate6.
Insight
56. | https://www.barilliance.com/dynamic-content-examples/
STEP 3
CONSIDERING A PURCHASE ONLINE
SolutionInsightUser Generated Contents are
More Valueable than KOLs
InsightSocial Media Influence on
Purchase
The report State of Social Commerce in SoutheastAsia by Magento, Hootsuite and EConsultancy shows that 48% of Southeast Asian customers find photos and videos from real customers the most valueable social promotion. Only 21% of consumers find influencer contents valueable on social media7.
According to the 2019 State of Social Commerce in Southeast Asia’s survey, 44% of respondents said they made three or more online purchases in a month, upon seeing social media posts or ads. Nearly 60% of those surveyed agree that social media influences more than a quarter of their online purchases7.
Gains from Online Reviews There are few ROIs you can track with online reviews.
The first metric is to check for conversion rate
increases, as customers generated reviews help build
brand and product credibility. Conversion rates will
increase the sharpest during the initial stages of review
volume growth.
Secondly, the SEO ranking on Google boosts authority
on search engines with long-tail keywords.
Lastly, brands can use online reviews to provide
product insights by extracting customer suggestions or
to identify product flaws.
Digital Campaign to Prompt Social SharingShoppers in Asia are happy to talk about their
purchases online. The 2019 State of Social Commerce
in Southeast Asia found that the majority (82%) of
respondents share purchases via their social networks,
amplifying the impact of buying online7.
Retailers should consider digital campaigns that
incentify and consolidate user generated content, to
maximise their gains.
After online reserch, consumers go
OFFLINE
48% of Asian customers find user generated contents most valueable
social media influences over 1/4 of their online shopping
6 in 10 agree
67. | https://info2.magento.com/The-State-of-Social-Commerce-in-Southeast-Asia.html
SolutionInsightRetail Stores Are Here to
Stay as the Prime Touchpoint
While some customer are convinced to buy products
after checking online reviews and social posts, others
will still visit in-store to see the actual product.
O�ine retail stores remain a key touchpoint in the
consumer journey in Asia. Wiser’s 2019 survey on
shoppers’ expectations showed that stores are still a
go-to for customers, where 52% of its survey
respondents are still more likely to purchase in-store
than online.
The main motivators of in-store shopping:
Product availability 64%
Store location 56%
Test items 54%
Instant gratification 51%
No shipping costs 49%
The in-store experience 39%
Easier return methods 37%
Research by the Harvard Business Review shows that
when someone first visits the physical store before
purchasing online that order baskets are 64% higher
value8. Omnichannel experience, if properly executed
by brands, not only will grow loyal customers but also
increases sales.
Seamlessly Weave Online and O�ine JourneyRetail brands are implementing unique features such as
“In-store Viewing” and "Enquire Size" functions on their
eCommerce sites. This allows customers to book time
in-store to view products for a personalised and true
omnichannel experience, contributing to increased
footfall and conversions.
Bring Visitors Back Online with Next-Level In-Store ExperienceThere are various tactics brands can use to tie
customer experiences across channels. Brands with
retail outlets can consider adding in-store interactive
screens or provide handheld tablets to boost
conversion rates. And when a customer can't find what
they want in-store, or faced with out-of-stock situations,
sales sta� can still complete the purchase online.
You can also use these same tools to incentivise sales
sta� to close sales and improve customer service.
Digital screens can be used by the digital-savvy
customers to browse through products and improve
product knowledge.
Customers are not ready to purchase immediately,
these tablets and interactive screen come into play. A
QR code can be created to transfer the instore wish-list
to a customer's phone that provides a direct link to the
brand's eCommerce site. Their wish-list are shown on
their phone's browser directly to the brand's
eCommerce site.
Order Baskets are 64% Larger When Purchased
Online After Visiting Physical Store
STEP 4
SHOPPING OFFLINE
78. | https://hbr.org/2018/06/5-surprising-findings-about-how-people-actually-buy-clothes-and-shoes
Shoppers expect a simple checkout process as well as
one-click purchasing through an app or website. As
Magento’s survey revealed, purchasing speed is
important for more than a third (35%) of APAC
respondents3.
Aside from fast checkout, customers feel strongly
about being able to choose their preferred payment
method.
Asian customers will only shop with retailers that o�er
the following payment methods:
It’s been an on-going battle for eCommerce sites to
fight cart abandonment. Seven out of 10 carts are
abandoned globally. According to SalesCycle, fashion
eCommerce stores in Asia Pacific su�ered a 69.8%
abandonment rate9.
There are many reasons why this happens. Barilliance's
research shows that unexpected extra costs account
for 60% of abandoned carts10.
60%
37%
28%
23%
Top Reasons for Abandoning Cart
Unexpected Extra Costs
Require Account Creation
Long Check Out Process
Order Total Cost Unavailable
STEP 5
CHECKING OUT
SolutionInsightRequire One Click and
Suitable Payment Method
The On-going Battle of Cart
Abandonment
O�er Localised Payment ChoicesBrands in Asia need to consider pushing non-card
payment methods, including e-wallets, bank transfer,
cash-on-delivery and convenience store payments. It is
also important to be mindful of local preferences
across Asian countries. For instance, cash-reliant
countries like Indonesia seek bank transfers as an
alternative online payment mode. Taiwan and
Philippines see paying at convenience stores as a
reliable and practical option.
According to Adyen’s 2019 article about non-card
payments, e-wallets like Apple Pay, Google Pay,
GrabPay (across SEA), Momo Pay (in Vietnam), and Pay
Maya (in the Philippines) are gaining popularity as
payment options in the region11.
Recapture Sales through Marketing Automation
An immediate ROI can be realised if you set up
automatic abadoned cart emails to recapture lost sales.
But don’t stop there! Continue to improve your email
campaigns by testing di�erent content. For example,
on top of showing cart items in the email, o�er
additional discounts or free shipping improve
conversion rates.
Also as mentioned earlier, user generated reviews can
be maximised by retailers to encourage conversions.
Insight
39%
30%
28%
25%
Credit Card
Debit Card
E-Wallet Payments
Cash-On-Delivery
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9.
10.
11.
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https://www.mumbrella.asia/2016/07/apac-e-commerce-transaction-abandonment-rates-worlds-highest-and-rising
https://www.barilliance.com/10-reasons-shopping-cart-abandonment/
https://www.adyen.com/blog/Non-card-payment-methods-in-Southeast-Asia
STEP 6
ORDER FULFILMENT
SolutionInsightOn The Watch For Flexible
Delivery
Another stage of the shopping journey where
customers expect a range of options is product
delivery. Asian customers prefer flexibility when
choosing the time and method of delivery to suit their
lifestyle.
According to the 2018 IPC survey, 29% of Asian
customers used product delivery to the workplace,
while three out of 10 consumers in Asia deem that
delivery in the evening or weekend is very important to
them5.
O�ine Pick-Up with Control On Delivery TermsO�er customers options to choose their pick-up time
and location to help improve their delivery experience.
Online retailers with physical stores can set up “Click &
Collect” to o�er customers the option to collect
purchases from a retail outlet. Alternatively, it is also
very common in Asia, especially in Taiwan, Hong Kong,
and Japan to provide collection from convenient stores
or specific stations.
The return process can also be made omnichannel
where customers can return products at the retail
stores or ask for pick-up at home. For brands that are
stock-level sensitive, the checkout page could display
an availability calendar that is connected to stock level
and delivery capabilities.
29% Asian consumers want delivery to workplace
Three out of 10 consumers
want delivery in the evening or weekend
SETUP A WINNING ECOMMERCE SITE
NOW
9
With the APAC eCommerce market growing at fast rates and with a projected trillion-dollar economy at stake, now’s the best time for brands to lead transformational changes. Here are the key areas where retail brands can explore, implement, and enhance their eCommerce sites:
Get platforms or software
that support mobile-
readiness and foster a
smooth customer experience.
O�er enhanced search
functionality by keyword and
image as well as provide
personalised product
suggestions.
Improve conversion rates,
SEO ranking and content by
incorporating user generated
content and buyer reviews
across your site.
O�er payment options based
on individual country’s
behaviour to avoid exits and
lost sales during checkout
Give customers the flexibility
to choose pick-up or delivery
times in store, in case other
options don't work for them.
Use technology to deliver a
digital experience to your
bricks-and-mortar stores and
merge the o�ine and online
experience.
About MONI
About Magento Commerce
MONI is an award-winning, digital
brand and commerce experience
agency, providing digital consultancy
and production services for brands in
Asia since 2006.
Magento, an Adobe company, is a
global leader in cloud commerce
innovation. Magento Commerce
boasts a strong portfolio of
cloud-based omnichannel solutions,
integrating digital and physical
shopping experiences and powering
$155 billion in gross merchandise.
www.monigroup.com
+852 3188 3660
HONG KONG • SINGAPORE • VIETNAM • TAIWAN
KEY TAKEAWAYS
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