Emphasis on Post-purchase experience in D2C

Customer journey doesn't end at purchase, that's where the journey to attaining Loyal customers begins. That's attained through Post-purchase integrations such as seamless returns management, omnichannel communication, and more.

A New age? That’s when a system gets reinvented either because of circumstance or advances made in the field. This is a time of uncertainty. With the evolution of the digital age along with the novel coronavirus, the world we live in has changed tracks - and businesses along with it.

Let’s talk about Direct-to-Consumer model - D2C is not just about selling directly by removing the middlemen, because it's also about developing a relationship between a brand and its consumer. This is where Emphasis on Post-purchase experience in D2C comes into play.

Creating a Superior Post-Purchase Experience to Build Customer Loyalty

Research shows that increasing customer retention by just 5% can boost profits by 25% to 95%. And this becomes easier when improved via D2C, because the brand is directly in touch with their crowd. In turn bringing the “Authentic Brand Experience”.

‍Nike announced their “Triple Double Strategy (2X)” a few years back. A decision was made to double their focus on D2C connections. Because they figured Direct to Consumer approach is expected to represent an 80% growth through 2020. 

‍And Forbes showed us proof with 9% growth in 2018, and 10% in just the first quarter of 2019. 

‍48% of manufacturers are now open to building D2C channels, while the number of brands selling D2C are expected to grow by 71% this year alone.

‍Now that you have seen the numbers on D2C benefits, we can now move on to what you’ve really come here for..the book of revelation, but on the Post Purchase Experience in D2C.

‍What is the Post-Purchase Experience?

The post-purchase experience refers to everything that happens after a customer completes a purchase with your D2C brand. This encompasses everything from receiving order confirmation and tracking updates to receiving the product, interacting with customer service, and even making returns.

Why Does the Post-Purchase Experience Matter?

The post-purchase experience is often overlooked, but it's a crucial touchpoint for building customer loyalty and brand advocacy. Here's why:

  • It shapes customer satisfaction: A smooth and positive post-purchase experience leaves customers feeling valued and happy with their purchase. Conversely, a frustrating experience can sour their opinion and lead to negative reviews or churn (lost customers).
  • Boosts customer lifetime value: Happy customers are more likely to become repeat buyers and spend more in the long run.
  • Gathers valuable feedback: The post-purchase experience is a goldmine for feedback on your product, delivery, and overall customer journey. This feedback can be used to improve your offerings and processes.
  • Strengthens brand loyalty: By exceeding expectations after the sale, you build trust and a stronger connection with your customers, turning them into brand advocates.

Why the post-purchase experience is important

In simple terms, the post-purchase experience is how you treat a customer after making a purchase from you. And the main purpose of anything that happens after is to Trigger another purchase, which could be done in various forms. But, before we go into the specifics of what they are, let's just skim through some of the advantages in focusing on your consumers’ Post Purchase Experience and advantages of D2C as a whole.

  • Creates the ability to build better understanding through direct customer relationships

  • Increases customer retention and builds customer loyalty and trust in the long run

  • Control over the end-to-end experience by gathering data post purchase

  • Potential to reach larger audiences and expand their market share

  • Advantage of not showcasing products alongside their competitors'

  • A platform to provide up-to-date and accurate information to consumers

  • Offering customers an option to buy authentic products direct from the brand.

“Across the world we have this one saying when it comes to customer service - each customer is different, just like every product is different. The one constant is technology and its advancement brought to the table in order to satisfy the different problems faced.”

- Pragma

As we already mentioned in the beginning, ‘Customer retention is cheaper than customer acquisition’. It costs 5 to 25 times more money to acquire new customers. And improving the post-purchase experience is key in reducing customer churn.

How to Optimise the Post-Purchase Experience

  1. Simple return, refund, or exchange policy

Framing the ideal policy that benefits you and the customer is key—be it returns or exchanges. More options the better when it comes to reimbursement like source account, or in-store credits. This way people will know that you have thought of their needs.

  1. Omni-channel support

Multi-channel instead of omnichannel - what’s the difference? Well, people tend to confuse both the forms of customer support. Omni-channel focuses on seamless integration across all channels and devices, whereas multichannel spans several different channels, like web, social, mobile, and physical stores but are not connected.

  1. Personalised messages

A simple thing as a ‘thank you’ note goes a long way. Such messages help create a positive impression with every purchase, be it the first or the 21st.

  1. Feedback

To get detailed feedback, you need to ask for it some time after purchase, usually it’s done after a week or a  month, so the customers get quality time to use the product. ‍ Online shoppers rely on product feedback to make purchase decisions, making every feedback extremely crucial.

  1. Consumer Analytics Solution to develop brand connect

67% of consumers expect brands to know them and personalize how they interact. Tracking and collecting direct data can answer several burning questions executives have had for decades.

Better data and control means better products and services that improve sales/satisfaction in every channel.

  1. Unique unboxing experience

Custom packages have become extremely popular today as they usually include promo codes, referral offers, and freebies. And these extras give you indirect promotion via if one decides to make an unboxing video or simply decides to post a photo of everything. Taking you another step closer to expanding your customer base while giving you a happy and loyal customer.

  1. Voice Capabilities/Chatbots

Over 50% of these inquiries go unanswered by brands due to a set working hours. But with services like chatbots and voice capability interactions, the millennial population seems more attracted. For example - Consumers who use Amazon Echo to make purchases are among Amazon’s most loyal customers, spending an average of $1,600 per year, compared to the $1,300 per-year average of Prime customers, a figure 66% higher than the average Amazon customer spends in a year. 

  1. Order tracking feature

‍Customers like to know when their order will be delivered. Simple as that. So, providing real-time order tracking and updates can relieve any stress or anxiety customers may face with their order, thereby increasing satisfaction.

  1. Ongoing offers, deals and referral programs

When customers need a product you sell, they should only turn to you, no matter what the competition provides - this is the goal. To do this you need loyalty programs for existing customers, create and share offers/deals regularly to keep in touch and say - “You’re special to us”

‍Customers who are loyal are more likely to give high ratings on your Net Promoter Score (NPS) survey, same goes for their product reviews/purchase experience which they share with peers, friends, and family. With a referral program they can reach more prospective customers.

  1. Product care tips

Engage customers by sharing product tips and "how-to" guides. You can also share product maintenance tips from time to time via email or other means. Try to resolve any issues or pain points the customers face while using your product.

  1. Reminders on special occasions

‍Retailers usually hold details like birthdays, anniversaries and more gathered through surveys, and use this data to give tailored recommendations for customers. A well thought out product recommendation along with a wish on special occasions adds a personal touch that we all wish to experience.

  1. Conduct surveys 

This helps gain insights and in turn enable you to work on areas that require improvement. Moreover, it also helps customers realise that their feedback and opinion have been noted and worked on.

  1. An Online Community

There are plenty of existing opportunities for creating communities on social media, such as creating a Facebook group for your community. The purpose is to create a close knit group for your consumers to interact with each other and with your brand.

  • They reduce customer support costs. Where 49% of businesses with online communities report savings of 10-25% annually.
  • They boost brand exposure and credibility, making it easier to sell without actually advertising.
  • You also gather insights on new products or services and features while providing better engagement and better customer retention.
  • It’ll also act as a channel to present products and/or services before their official launch.
  1. Virtual & Augmented Reality

These are game-changers for consumers and marketers to communicate and interact. Their impact is likely to expand as the technology matures and develops, especially in the area of customer experience. Where AR/VR  are becoming more widespread. And apps such as Google Lens search just by looking at an object, and these are just the tip of the iceberg at the moment; but in time they will change the game entirely.

To Wrap it up..

The role of Post-purchase Experience in a D2C business is the same as your favorite dessert after a meal - Yes, you can have a meal without dessert; but we leave it up to you to decide which you’d prefer.

To build post-purchase experience for your D2C brand, let the experts at Pragma help you with some great ways to establish this.

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1.  What is the post purchase customer experience in D2C?

The post-purchase customer experience encompasses everything that happens after a customer completes a purchase on your D2C store. This includes receiving order confirmation, tracking updates, product delivery, interacting with customer service, and even making returns.

2. Why is post purchase experience so important for D2C brands?

Unlike traditional stores, D2C brands lack a physical presence for post-purchase interaction. customer experience becomes crucial for building customer loyalty and brand advocacy. A smooth customer experience keeps customers happy and fosters repeat purchases.

3. How does a positive post purchase experience benefit D2C e-commerce businesses?

An ecommerce post purchase experience can significantly improve customer lifetime value. Happy customers spend more in the long run and are more likely to recommend your brand, driving organic growth. Additionally, valuable feedback from a positive customer experience helps refine your offerings and processes.

4. What are some best practices for improving the post-purchase experience in D2C?

Transparency is key. Provide clear order confirmations, real-time tracking, and estimated delivery timelines. Offer multiple customer support channels and respond promptly to inquiries. Consider personalized post-purchase emails with product recommendations or usage tips.

5. How can technology help D2C brands improve their post purchase experience?

Invest in CRM (Customer Relationship Management) tools to manage interactions and track touchpoints. Utilize customer data to personalize post-purchase communication and recommendations based on purchase history and preferences. Leverage automation tools for faster response times and a smoother customer experience.

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