E-commerce plugins: Nice-To-Have vs. Crucial Revenue Stream

E-commerce plugins: Nice-To-Have vs. Crucial Revenue Stream

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Where decision-making could be failing us and the opportunities that online retailers (still) haven’t realized.

When it comes to adding extra functionality to our online shop (or when it comes to any purchase decision, really), we all face that dilemma of whether going along with it or not. And the decision-making process usually involves weighing the benefits of having this whatever awesome functionality, against the ROI that we expect. Eventually, we qualify the bonus functionality as “nice-to-have” or something that will positively impact our business revenue.

Now, most of the time our rationale is biased, and not guided by our customers expectations nor by the industry trends. Whether we like it or not what we believe is a clear “nice-to-have” functionality could be a solid investment in our business.

Here’s a newsflash for you. You are taking this as an afterthought.

Reason is very simple & it’s not knowing what your customers want or rather ignoring their expectations (wouldn’t recommend either).

Turning Nice-To-Have into ROI

Shipment Update Notifications Are “Essential” to Online Shoppers

Excerpt from 2013 UPS Pulse of the Online Shopper

The vast majority (over 95% across the board) of online shoppers indicated that tracking is either “essential” or “nice to have”. Both the format and content of tracking information considered important vary by country, but a consistent theme is that online shoppers want updates via digital methods, primarily through email notifications with tracking numbers. 

Excerpt from 2013 UPS Online Shopping Customer Experience Study

The most important tracking-related services for shoppers were e-mail notifications with a link to track and the ability to track directly on the retailer’s site.

Okay, that was 4 years ago and a lot has changed since, but believe me the importance of the tracking information hasn’t died out, if not the contrary. The only change here is the shift from email notifications to mobile texts – “4 in 10 online shoppers now prefer text notifications for some delivery information” (from the 2016 UPS Pulse of the Online Shopper).

What was considered nice-to-have functionality 4 years ago is a no brainer now, with additional trends rising in popularity like free returns shipping & guaranteed delivery dates. 

In case doing it solely for your customer’s satisfaction wasn’t a good enough of a reason. Here’s another one from UPS – ”Women and millennials find promotions with delivery alerts more appealing…” Even though, having an on-site shipment tracking and sending  notification alerts to your customers been industry standard for some years now, clearly not many businesses have realized the obvious opportunity here. I guess customers telling you that promotions with delivery alerts are appealing to them is somewhat lacking coherence? 

It’s not! 

Nice-To-Have is Nice-To-Have

The twist with nice-to-have functionality is identifying an opportunity and leveraging it to your advantage, which makes it more than just nice-to-have. Tracking notifications are a great way to satisfy customers post-purchase and alternatively retarget them for next conversion, because let’s be honest there is nothing better than a returning customer.

Consumers want alerts and notifications regarding delivery, promotions and free or discounted shipping. 

According to UPS, 63% of customers want either of the following promotions with the delivery alerts:

  1. Free or discounted shipping on future purchases.
  2. Promotional code to be used at checkout.

Turns out shoppers track their shipment on avg. 4.6 times which means shipment alerts are inducing engagements 4.6 times. So, why not add promotional content to those alerts? Didn’t think of that huh? Many don’t.
Our stats show up to 10% growth in cross-sales just by including promotions and discounts in delivery notification alerts. I don’t know about you but that seems like a revenue stream to me.  

Online retail shops are for online shoppers and they should be designed and operate with the purpose of serving customers’ needs. That is why we, at Packpin, deliver branded solutions to online retailers to champion their customers every step of the post-purchase journey. For more details on promotional notification alerts take a look at our post-purchase email examples in the previous post.