A new report, analysing trends in consumer shopper behaviour commissioned by an emerging start-up Youstice.com, which launches globally today, has revealed that, surprisingly, British online shoppers are willing to lose over £20 before taking the effort to make a complaint. Watch the video.
However, we are willing to hold a grudge following bad customer service, and over a third of respondents are unlikely to make a repeat purchase online if treated badly by a retailer.
The new study, titled ‘Keeping the Faith: Building Trust in an Online World’ – which interviewed over 3000 consumers across Europe and developed by a lecturer in consumer behaviour at Goldsmiths University and Vanson Bourne on behalf of @Yousticecom – reveals that as online shopping proliferates, shopping habits and behaviours are changing with huge trust and anxiety issues, unfolding across the continent.
Patrick Fagan, Associate Lecturer at Goldsmiths University, said: “Consumer decision-making has been transformed by online shopping, which has given consumers the ability to compare products and prices with ease. As a result, shoppers are a lot more sensitive to ‘barriers to purchase’ – that is, split-second reasons not to buy, like a lack of trust, poor feedback from other customers, or prior bad experience with customer service.”
Zbynek Loebl, Founder and CEO, Youstice.com added: “Today’s consumers have become increasingly savvy about what and where they purchase online. However it is clear from the report that they are losing out financially because retailers have made acclimatised them to this acceptance by making a claim for refunds or exchanges difficult. The Youstice service is here to help consumers get a fair deal online regardless of how big or small the value is.”
Youstice.com is the world’s first online application that solves shopping issues across the globe in a fast an efficient way. It provides online retailers globally with a secure and trustworthy solution for resolving claims and disputes via single tool, available on all devices.
As the new European regulation comes into effect in 2015, calling for all internet retailers to have an Online Dispute Resolution (ODR) system in place for consumers – Youstice offers retailers one solution with a simple integration into a retailer’s website structure, helping facilitate claims in multiple languages, aiding cross-border shopping and removing barriers to purchase. The service is commercially available in the UK and globally starting today and comes for free for all the retailers during first three months, with several subscription packages starting from 10 EUR to choose from.
It’s a Matter of Trust
The issue of online trust was a prominent feature of the new report. Online retail has made the process of shopping a lot easier for many but the report reveals insights into consumer behaviour that suggest it has also made consumers more wary. Three out of five UK shoppers rely on previous customer feedback such as reviews before making a purchase with an online retailer, whilst more than nine out of ten (91%) use a combination of previous feedback and searching online (e.g. forums or communities) before making a purchase.
Cross-border Anxiety
Making a purchase from a foreign online retailer still fills shoppers with anxiety and concern. Language barriers and not knowing how to follow up an order to complain all play a part in affecting a consumers’ level of trust with such retailers. As the Trust Matrix below suggests (the lower the percentage value, higher the perceived trust), British online shoppers have far more trust in American, German and French retailers compared to equivalents based in Italy, Spanish or Asia.
The Art of Complaining
When it comes to complaining about a purchase the power of written word holds true for British shoppers with email as the preferred route to complaining for more than two thirds (67%). Less than one in five (19%) prefer to complain in person whilst, surprising given the rise of social media, just one in ten (12%) would opt for complaining via social media channels – either their own or the retailer’s.
Customer Service under the Spotlight
In today’s global online marketplace there should be no excuse for bad customer service – but when it does occur the stark repercussions for retailers are clear. Following a bad experience half of UK shoppers (49%) are immediately more wary of a repeat purchase while more than a third (40%) would never shop with the same retailer again. Although in contrast, French and German shoppers are not as lenient on bad online customer service with two thirds – 66% and 64% respectively – never buying from the offending retailer again.
Knowing your Rights
The report does raise the interesting issue of understanding the differences between consumer rights when purchasing online and in-store. Close to a quarter of UK shoppers (22%) don’t know the difference at all whilst more than a third (36%) said that online rights are mostly the same. In fact the online shopper has more rights compared to in-store (source: MoneySavingExpert.com). Shoppers in Germany were found to be the most informed about the differences here.
For further information on Youstice, please visit the website, CEO blog or join them on Facebook, Twitter and Google+.
