Poor online experience is costing UK brands at least £234 billion a year, according to a study from Censuswide and Magnetic North.
The figure is derived from a calculation of the average annual spend of UK households and the lost revenue based on the number of abandoned purchases online.
In comparison, a similar study from Snapparcel put this figure at close to $4 trillion worldwide, however Experian estimates a far more cautionary total of £1bn is lost due to shoppers that fail to reach checkouts online.
Regardless of the estimated cost, the issue of revenue lost at the checkout phase of an online transaction is a very real one for ecommerce providers, and the experience through to checkout is often cited as the root cause.
In a corresponding survey of 1,000 consumers to compare the experiences being delivered across different sectors including utilities, phone, TV and broadband, clothing, travel, home improvement, entertainment and groceries, Censuswide and Magnetic North found 92% of respondents citing a poor customer experience across one or more of these sectors.
One in three having “acted on their frustration by abandoning a purchase because they couldn’t find the information they needed”.
“The customer experience landscape has changed, customers now hold the power and they won’t hesitate to take their business elsewhere if brands can’t meet their demands,” says David Ford, managing director of Magnetic North.
“Businesses will have to adapt to becoming more customer centric in order to stay competitive. Negative experiences are resulting in customers abandoning purchases and this is costing UK brands billions each year and with our research revealing that 92% of consumers have had a bad customer experience, no brands can afford to be complacent.”
According to Chloe Thomas, author of the eCommerce MasterPlan, the main issues leading to shopping cart abandonment are unexpected costs at checkout, a growing expectation of 1-Click Ordering (that’s not often fulfilled) and a lack of instant support across different channels.
About Chris Ward
Chris is Editor of MyCustomer. He is a practiced editor, having worked as a copywriter for creative agency, Stranger Collective from 2009 to 2011 and subsequently as a journalist covering technology, marketing and customer service from 2011-2014 as editor of Business Cloud News. He joined MyCustomer in 2014.