The Limited: Our Core Value is Putting the Customer First

In June 2014, The Limited implemented Bizrate Insights, our customer feedback platform. Today, The Limited receives ~1,000 completed surveys each week, providing insights into their customer experience that helps them improve their IT, e-commerce, stores, promotions, planning, operations, merchandising, products and much more. The Limited started with asking simple questions: What do customers love? Is there consistent feedback on a particular product? Do customers understand promotions and return policies?

The Limited

Dawne Brookes, The Limited’s Supervisor, Ecommerce Contact Center & Operations spoke with us to share how Bizrate Insights supports The Limited’s goal of listening to their customer, and provides context for their customer feedback.

“Good listening is the first step of serving customers better, and will lead to long-term growth. Over the past few years, retailers have become very promotional, but we continue to focus on our customers’ needs. What really will differentiate a retailer is listening to the customer, and providing excellent service based on what we hear,” said Ms. Brooks.

For more key takeaways on The Limited’s journey to find the voice of the customer, click here.
 For a transcript of Dawne Brooks’ full interview, click here.

Almost 1/4 of Shipping Club Members May Cancel Due to Late Delivery

Most shipping club members look for one, primary benefit in their membership: short delivery times at no incremental cost. Considering the importance of this benefit, we decided to examine how well shipping club sponsors, retailers or other entities providing this service, live up to delivering on this promise.

Bizrate Insights collected nearly 6,400 responses from online shoppers who participate in shipping clubs to learn more about late deliveries and how they affected buyers’ intention to renew.

Shipping Clubs: Why On-Time Delivery Matters


ShippingClubGraph-General33% of surveyed buyers reported being members of a shipping club
, the most popular memberships being Amazon Prime (28% of all respondents) and Barnes & Noble (5% of all respondents). Of this 33%, 28% report that their membership is a free trial.

Of all shipping club members, 43% reported they may not renew their memberships; nearly a quarter of that group (9.7% of all shipping club members) said it was specifically due to late package deliveries in December 2014, while the additional 33% were considering non-renewal for other reasons.

Members of the two biggest shipping clubs—Amazon first, followed by Barnes & Noble—report that 21% and 8% of orders in December 2014 were delivered late, respectively.

Free Trial Members More Prone to Cancel

When we compared free trial vs. paid shipping club members, there was a notable difference in buyer’s reluctance to renew.

  • 73% of free trial members may not renew
  • 31% of paid members may not renew

Of those who may not renew…

  • 24% of free trial members may not renew due to late deliveries
  • 22% of paid members may not renew due to late deliveries

A Closer Look at Amazon Prime

ShippingClubGraph-AmazonPrimeWe examined responses by Amazon Prime members, who represent 74% of shipping club memberships, and found that not only did 21% of Prime members report receiving a package late, but the number may in fact be 50% higher, given that 31% of respondents agreed that some of their items ordered through Amazon Prime arrived in more than two days.

These numbers were higher than average amongst Generation Y; 26% reported at least one Amazon Prime order arriving late in December 2014, and 35% report that some of their Prime items arrived in more than two days.

Late delivery was also of notable importance to Amazon Prime members; out of 41% of Prime members considering non-renewal, 9.6% (about a quarter) were considering non-renewal specifically due to late deliveries. The other three quarters were considering it for other reasons.

26% of December 2014 Amazon Prime members report that their membership was under a free trial.

The bottom line: on-time delivery is very important to the longevity of shipping club membership. In fact, it’s deeply important to all buyers. We see this in the high correlations between on-time delivery and key loyalty metrics, as well as the power of reliable delivery to entice shoppers to convert online, as reported in our January BizAdvisor; 37% of online shoppers would buy a greater percent of 2015 Holiday purchases online if they have guaranteed on-time delivery.

These buyer sentiments no doubt make a difference in the bottom line of any retailer or service that provides shipping club memberships, and should be a key priority to consider in the coming year.

About This Study

This Shipping Clubs and Late Deliveries Study was conducted via the Bizrate Insights survey platform and offered to online buyers immediately after purchasing from the Bizrate Insights Network of over 5,000 e-commerce retailers in the US and Canada. Amazon.com, Inc. is not a member of the Bizrate Insights Network. Data from the study was collected from 6,396 online buyers from January 7-14, 2015.

Nearly 2/3 American Shoppers Don’t Trust Retailers With Their Payment & Personal Information

It may be over a year since the infamous Target data breach, but the consumer fear sparked by this incident—and those that followed—still resonates with many buyers to this day. In our latest study on data security, Bizrate Insights took a closer look at buyer concerns by channel, and the effect it may have on future purchases. We also uncovered something that can help retailers gain customer trust back.

Examining buyer anxiety around data security

No matter where the data breaches occur, all retailers are affected by reported incidents of personal information theft. Our study found that almost 2/3 of online buyers agree that retailer security to protect their credit card and personal information isn’t strong enough.

That being said, retailers who are courting Generation Y have less to worry about than brands that are targeting older generations. Gen Y shoppers are substantially less likely to agree (across mobile, web and retail store channels) that retailer data security isn’t strong enough, while Seniors and Boomers are likelier to be on the other side of the spectrum:

Retail Data Security -  Big Graph - By Generation

This consumer fear of insufficient data security is validated for a meaningful percentage of buyers who actually experienced personal information thefts from retailers over the past year. While not all buyers have personal experience with theft of their private data, many more of them are still concerned by the reports they hear about customer information being stolen from retailers.

DataSecurity-TopReasons

These frequent breaches, whether experienced personally or vicariously through the news, make many buyers think twice before purchasing. This apprehension leads approximately 1 in 3 buyers to report feeling reluctant to make purchases in stores or online, and could represent considerable loss in revenue for retailers.

DataSecurity-Reluctance

Who do buyers trust with their personal information, and why?

Respondents were given an open question asking “Which retailers do you trust the most with your credit card and personal information?” and Amazon was the number one answer. The word cloud below represents consumer responses:

Wordcloud

Consumer trust may be high amongst Amazon shoppers, but it is accessible to all retailers. The study found that retailers can boost consumer confidence by leveraging well-known trust symbols (i.e. Bizrate Customer Certified, TrustE or a high grade with the Better DataSecurity-TrustSymbolsBusiness Bureau). The majority of buyers (over 2/3) with concerns over data security reported that trust symbols help increase their confidence to buy online.

Consumer confidence may have been shaken by retailer data breaches, but that trust can be rebuilt. Provide customers with information about the precautions your business is taking to protect their personal information, and place trust symbols in visible locations on your website.

For the full report and more tips on reducing buyer concerns about data security, click here to request access to our exclusive BizAdvisor report when it comes out.

About the Study

The Bizrate Insights Payment Security Study #2 was conducted via the Bizrate Insights survey platform and offered to online buyers immediately after purchasing from the Bizrate Insights Network of over 5,000 e-commerce retailers in the US and Canada. Data from the Payment Security Study #2 was collected from 4,902 online buyers from January 7 – 12, 2015.

Article by Hayley Silver

4 Critical Takeaways From 2014 Holiday Insights

Insights are in from the 2014 holidays! Based on our review of buyer trends and preferences during the holiday shopping period, we’ve created 4 key steps retailers should take in the coming year to boost online purchase. Click here to find out what they are.

HolidayBizAdvisor2014A few key findings:

  • Mobile purchases have gone up year after year. See the numbers in the report, as well as several tips for optimizing the consumer experience on mobile.
  • Ease of shopping is an important factor when consumers purchase online. How can you reduce pain points and speed up the buying process?
  • Consumers are more likely to say they will “only buy if [they] have a deal, sale, or promotion” during one period in particular.
  • 89% of buyers say that, if this must-have promotion is offered, it would convince them to purchase more online in 2015.

For a full breakdown of our holiday stats and tips, click here to read our handy one-sheet.