Ecommerce – CSM – Customer Service Manager Magazine https://www.customerservicemanager.com The Magazine for Customer Service Managers & Professionals Fri, 08 Mar 2024 15:37:50 +0000 en-US hourly 1 Leveraging Artificial Intelligence and Machine Learning in E-commerce Development https://www.customerservicemanager.com/leveraging-artificial-intelligence-and-machine-learning-in-e-commerce-development/ https://www.customerservicemanager.com/leveraging-artificial-intelligence-and-machine-learning-in-e-commerce-development/#respond Tue, 05 Mar 2024 10:30:18 +0000 https://www.customerservicemanager.com/?p=44493

Today, online shopping is booming like never before, driven by technological advancements and consumer behaviors. Two big players in this area are Artificial Intelligence (AI) and Machine Learning (ML).

In this article, we’ll look at how AI and ML are shaking up online shopping and making it better for everyone involved.

Key Aspects of E-commerce Changed by AI and ML

AI and ML technologies are making big changes in online shopping, spawning numerous e-commerce development solutions. Here’s how they’re doing it:

Personalized Product Recommendations

Personalized product recommendations are perhaps the largest area highly impacted by AI and ML algorithms. These technologies analyze user data like browsing history, purchases, and preferences to suggest products tailored to each person’s interests.

There are different methods for making these recommendations. One popular way is called collaborative filtering, where the system looks at what similar users have liked or bought to suggest items.

Another method, content-based filtering, focuses on suggesting items similar to ones a user has interacted with before. Often, a combination of these methods is used to provide more accurate recommendations.

What’s impressive is that these systems can adjust recommendations in real time as users browse the website or app. This means you’re more likely to see suggestions that are relevant to you right when you need them.

Predictive Analytics for Customer Behavior

Predictive analytics for customer behavior is like having a crystal ball for online retailers. It uses advanced algorithms and data analysis to forecast what customers might do next based on their past actions.

Imagine you’re an e-commerce business owner. Predictive analytics would look at all the data you have on your customers: what they’ve bought in the past, how often they visit your site, how long they stay, what pages they look at, and so on.

Then, using machine learning algorithms, it identifies patterns and trends in this data to predict future behavior.

For example, it might notice that customers who buy certain types of products are more likely to come back and make another purchase within a certain time frame.

Or it might find that customers who spend more time on your site tend to spend more money. Armed with these insights, you can tailor your marketing efforts to target specific customer segments more effectively.

Natural Language Processing (NLP) for Customer Support

Natural Language Processing (NLP) is similar to having a team of agents who can understand and respond to customer inquiries instantly, 24/7.

When a customer reaches out for support, whether through chat, email, or social media, NLP algorithms kick into action.

One of the most common applications of NLP in customer support is chatbots. These virtual assistants can engage in real-time conversations with customers, answering questions, providing information, and even assisting with purchases.

Another thing NLP is good at is sentiment analysis, which allows it to perceive the mood and emotions behind customer messages.

By analyzing the tone and language used in customer interactions, businesses can identify issues and address them before they escalate.

Visual Search and Image Recognition

With visual search and image recognition technology, users can search for products using images instead of relying solely on text-based queries.

When a customer uploads an image or takes a photo of a product they’re interested in, visual search technology studies the visual features of the image, such as shape, color, and texture.

Then, using image recognition algorithms, it compares these features to the products in the e-commerce database to find visually similar items.

Visual search offers several benefits for both customers and e-commerce businesses. For customers, it provides a more intuitive and convenient way to find products, especially when they’re not sure how to describe what they’re looking for in words.

For e-commerce businesses, visual search technology helps drive engagement and conversions by making it easier for customers to find and purchase goods.

Fraud Detection and Risk Management

Detecting fraud and managing risks are crucial tasks for e-commerce businesses to keep their operations secure. AI plays a vital role in this process by analyzing various data points to identify suspicious activities.

When someone makes a purchase online, AI algorithms instantly examine different factors like the user’s past transactions, behavior patterns, device details, and location. By looking at all this information together, AI can spot unusual behavior that might indicate fraud.

For instance, if a purchase is much larger than usual for a user, or if it’s from a location they’ve never bought from before, AI could flag it as suspicious or ban it.

Dynamic Pricing and Demand Forecasting

Dynamic pricing and demand forecasting use data and smart algorithms to adjust prices and predict what customers will want.

Dynamic pricing means that prices change based on factors like demand, competition, and even the time of day.

For example, if a product is selling quickly, the price might go up to take advantage of high demand. Conversely, if sales are slow, the price might drop to attract more customers.

Demand forecasting uses data and algorithms to predict future demand for products. It considers factors like past sales, seasonality, trends, and even external factors like the weather.

By analyzing all this information, businesses can anticipate how much of a product they’ll need and adjust their pricing and inventory accordingly.

Customer Experience Enhancement

In addition to all aspects mentioned above, AI and ML are also used to make the customer experience better.

They help businesses talk to customers in a way that feels personal, show ads that are just right, and understand what customers think in real time.

By looking at how customers behave and what they like, businesses can send emails, deals, and suggestions that match each person’s interests. ML also helps businesses see what people are saying about them online and spot any problems early.

Data Privacy and Ethical Considerations

Despite all the good AI and ML bring, there are some big things to think about when using these technologies.

One issue is keeping people’s information safe. AI and ML need lots of data to learn from, like what you buy and look at online. But it’s highly important that this data is kept safe and not used in the wrong way.

Another big concern is doing things ethically. Companies need to ask permission before collecting data and be clear about how they’ll use it. They also need to make sure their systems aren’t unfairly treating different groups of people based on things like their race or gender.

Conclusion

AI and ML technologies have greatly influenced online shopping, bringing many advantages to both businesses and customers alike. By using them responsibly and creatively, online shops can stay ahead and make customers happy, which leads to more success online.

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Tips to Selecting the Right Wholesale Commerce Solution for Distributors https://www.customerservicemanager.com/tips-to-selecting-the-right-wholesale-commerce-solution-for-distributors/ https://www.customerservicemanager.com/tips-to-selecting-the-right-wholesale-commerce-solution-for-distributors/#respond Mon, 29 Jan 2024 16:15:14 +0000 https://www.customerservicemanager.com/?p=43807

Choosing the right wholesale commerce solution for your distribution business isn’t a task to take lightly.

It’s an essential tool that could either streamline your operations or create endless headaches. With countless options available in today’s market, it can be overwhelming to identify which one is ideally suited to your specific needs.

This decision will influence not only the efficiency of your supply chain but also how effectively you’re able to meet your customers’ needs.

In this article, we’ll provide practical tips on how to select the right wholesale commerce solution for distributors. We’ll delve into important factors such as scalability, customer support, integration capabilities, and cost considerations, among others.

By the end of this guide, you’ll be equipped with knowledge that will simplify your decision-making process and ultimately lead you to a solution that best fits your business model.

Understanding your business needs and scalability is crucial when choosing a wholesale commerce solution. It’s important to choose a solution that can accommodate your business’s unique requirements and seamlessly integrate with your existing infrastructure, as well as being able to handle growth without negatively impacting user experience or system performance.

The cost of a platform should not be the only deciding factor when comparing different wholesale commerce solutions. It’s imperative to look beyond the price and evaluate the overall value a platform can bring to your business, considering the potential return on investment from each feature and the scalability of the platform.

Evaluating Your Business Needs

Before diving into the sea of options, it’s crucial to take a step back and critically assess your business needs to ensure you’re making the best decision.

This process involves evaluating your current business model, identifying gaps and areas of improvement, and determining the best ways to leverage a wholesale commerce solution to facilitate growth.

Understanding your business needs will not only point you in the right direction, but it will also prevent unnecessary costs and potential setbacks that can result from hastily choosing an incompatible platform.

The evaluation should include a thorough analysis of your current system’s performance, the functionality it provides, and how well it aligns with your business objectives.

Consider factors such as the volume of your transactions, the complexity of your operations, and the scalability of your business.

Your chosen solution should be able to accommodate your business’s unique requirements and seamlessly integrate with your existing infrastructure.

By doing so, you can ensure that you are investing in a wholesale commerce solution that truly supports and enhances your business operations.

Key Takeaway

“Remember, a thorough needs assessment is key – it’s like a compass guiding you to the right wholesale commerce solution, minimizing missteps and maximizing growth potential.”

Understanding the Importance of Scalability

As your business grows, it’s crucial to grasp the concept of scalability, envisioning it as a ladder that facilitates climbing to higher levels of sales and customer volume with ease and efficiency.

Scalability, in the context of a wholesale commerce solution, is the ability of the system to accommodate an increasing amount of work by adding resources to the system. A scalable solution allows your business to handle growth without negatively impacting the user experience or system performance. This is crucial in the wholesale industry as growth often means dealing with larger clients, greater order quantities, and an expanded product range.

The importance of scalability cannot be overstated when selecting a wholesale commerce solution for your distribution business. It ensures that the system will not become obsolete as your business expands and your needs evolve.

A scalable solution will give your business the flexibility it needs to expand or contract based on market demand. It will also save you money in the long run, as you will not have to invest in a new system every time your business undergoes significant growth or change.

Therefore, understanding and factoring in scalability when choosing a wholesale commerce solution can greatly influence the longevity and success of your distribution business.

Key Takeaway

In the digital economy, a scalable wholesale commerce solution isn’t just an asset, it’s a necessity that ensures sustainable growth and resilience in market fluctuations.

Assessing Customer Support and Services

Don’t underestimate the value of top-notch customer support and services when evaluating your options for a distribution platform. When you’re in the thick of managing orders, deliveries, and inventory, the last thing you want is to be left hanging by your platform’s support team. Look for solutions that offer 24/7 support, ideally with multiple channels of communication such as email, phone, and live chat.

In addition, consider the response times and the quality of the support provided. A quick response is useless if it doesn’t effectively address your issues. Moreover, go beyond just support and consider the additional services the solution may offer. Some platforms offer onboarding and training programs to get your team up to speed with the new system. Others provide consulting services to help you optimize your distribution process.

These added services can be invaluable in ensuring a smooth transition and maximizing the potential of your chosen platform. So, when you’re comparing different solutions, be sure to assess both the level of customer support and the additional services offered.

Key Takeaway

Don’t overlook the platform’s ability to handle unexpected, complex situations and its willingness to adapt to your unique business needs.

Checking Integration Capabilities

You’ll want to pay close attention to the integration capabilities when choosing your distribution platform. The right wholesale commerce solution for your distribution business should be able to seamlessly integrate with your existing systems, such as the ERP, CRM, and inventory management systems. This will help you to streamline your operations, eliminate any potential data silos, and improve your overall efficiency.

The ability to integrate with third-party applications and platforms is also vital. You should look for a solution that can easily connect with e-commerce platforms, payment gateways, shipping providers, and other necessary systems.

Furthermore, it is essential to consider the flexibility of the integration capabilities. A good wholesale commerce solution should not only be able to integrate with your current systems but should also be capable of integrating with any future systems you may adopt as your business grows and evolves. Therefore, ensure the solution you select has a robust API, and check if the provider offers any integration support services. This will save you from potential future headaches related to system incompatibility or integration difficulties. This, in turn, allows for smooth operations and seamless service delivery to your customers.

Key Takeaway

Check for a solution with scalable integration abilities to accommodate future growth, and ensure the provider offers reliable integration support to avoid future system issues.

Considering Cost and Value for Money

Let’s talk money – it’s important to consider not just the cost of your platform, but also the value it brings to your business.

When comparing different wholesale commerce solutions, the price tag should not be the only deciding factor.

A cheap platform might seem ideal initially, but it may lack essential features and capabilities that can help your business grow, which means you may end up spending more in the long run.

On the other hand, a costly platform might offer many features, but if you aren’t going to use most of them, the value for money is diminished.

Therefore, it’s crucial to look beyond the price and evaluate the overall value a platform can bring to your business.

In the process of considering cost and value for money, you must take the time to assess what features are crucial for your business operations.

Analyze the potential return on investment that could be derived from each feature, and consider the costs of not having these capabilities.

For instance, a platform with exceptional customer service or advanced analytics could potentially help you streamline operations and make better decisions, thereby saving you money in the long run.

Moreover, consider the scalability of the platform; as your business grows, you want a solution that can grow with it without requiring significant additional investment.

In conclusion, while the cost is a significant factor, the real value lies in the features, scalability, and potential growth it can facilitate for your business.

Key Takeaway

Consider not just initial costs but long-term ROI, ensuring your chosen solution offers essential features and scalable growth potential for optimal value.

Frequently Asked Questions

  • What are the essential features to look for in a wholesale commerce solution?

When choosing a wholesale commerce solution, look for features like inventory management, order processing, customer management, reporting and analytics. Also important is multi-channel selling capability, which allows you to sell through different platforms. A user-friendly interface and good customer support are also beneficial.

  • How can a wholesale commerce solution enhance the efficiency of my distribution business?

A wholesale commerce solution can enhance your distribution business by streamlining operations. It does this by automating processes like inventory management, order processing, and delivery tracking. This leads to fewer errors, saves time, and ultimately increases efficiency and profitability.

  • How long does it usually take to implement a wholesale commerce solution into an existing business model?

The time it takes to implement a wholesale commerce solution into an existing business model can vary, but on average it can take between 1 to 6 months. This timeline depends on the complexity of the business, the specific solution chosen, and how quickly the company can adapt to new processes.

  • Can a wholesale commerce solution help in automating the business process?

Yes, a wholesale commerce solution can help automate your business process. It can manage tasks such as inventory tracking, order processing, and customer service. This makes your operations more efficient and allows you to focus on other aspects of your business.

  • How secure are these wholesale commerce solutions in terms of data protection and privacy?

Wholesale commerce solutions are typically designed to be secure and protect data privacy. They usually use encryption to safeguard customer information and have stringent policies for data protection. However, the level of security can vary between providers, so it’s always wise to check a provider’s security measures before choosing a solution.

Conclusion

In conclusion, the process of selecting the right wholesale commerce solution for distributors can be intricate and demanding. However, with the right approach and these tips in mind, it becomes increasingly achievable.

Understanding your business needs, assessing scalability, customer support and services, integration capabilities and cost are crucial factors to consider.

These factors will ensure that you find a reliable solution which not only meets your current needs but also supports future growth.

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Eight Questions Online Retailers Should Ask before Outsourcing Customer Service https://www.customerservicemanager.com/eight-questions-online-retailers-should-ask-before-outsourcing-customer-service/ https://www.customerservicemanager.com/eight-questions-online-retailers-should-ask-before-outsourcing-customer-service/#respond Wed, 05 Oct 2022 09:11:38 +0000 https://www.customerservicemanager.com/?p=35449

Customer service outsourcing can be a cost-effective way to manage customer-related activities. You hire a third-party vendor, such as a business process outsourcing (BPO) company, to handle your service or product orders, requests, and issues.

The BPO company should be able to deliver excellent customer satisfaction. Its support team will be well-trained to communicate with online shoppers and help transform their purchasing journey into a rewarding experience.

Before outsourcing your retail processes, take note of eight critical questions to help you find the right partner. Use these in your ecommerce business strategy.

Read on to learn how to outsource effectively.

1. Does the Vendor Have a Dedicated Team of Specialists?

Ensure that the prospective BPO firm will provide you with a specialist team focusing entirely on your activities. A dedicated team typically consists of an experienced supervisor and top-performing agents. It might also include support analysts and a project manager.

The benefits of a dedicated team:

  • Experienced individuals address various product or service concerns fast.
  • You can oversee customer service activities such as choosing the work procedures, determining the number of tasks, and deciding on the types of assignments.
  • People familiar with your overall customer operations can help you analyze your processes more accurately.
  • You can provide consistently high-quality customer service.

Forbes reports that over 50% of customers are ready to change brands to experience better customer service. By contrast, fewer than 5% of customers are willing to stay even after receiving poor service.

2. Is the BPO Provider Accessible 24/7?

Choose a BPO partner that opens its communication lines for you 24 hours a day, seven days a week. You can regularly contact the customer service team for questions and other related matters.

The benefits of accessibility:

  • You can regularly receive updates from the team regarding the progress and status of outsourced processes.
  • Accessibility improves the work efficiency and productivity of the customer service team.
  • The team can express their ideas constructively and freely, raising their confidence.
  • Accessibility helps close cultural gaps, especially for an offshore team based in countries such as the Philippines, India, and Ukraine.

3. Does the BPO Partner Guarantee Data Security and Privacy?

Check whether the service provider stores all crucial and sensitive buyer data using cloud technology and the latest customer service software. Also, determine whether it implements strict security policies across platforms.

High data security and privacy can benefit you because they:

  • Prevent unauthorized persons, entities, or groups from accessing customer data
  • Protect your reputation and brand
  • Reduce the chance of suffering substantial financial costs due to a data breach

IBM recently reported that the average cost of data breaches worldwide in 2022 stood at $4.35 million. That’s up by almost 3% from $4.2 million in 2021. The company noted that the global average cost stood at an all-time high.

4. Can the BPO Provider Help With Compliance?

The third-party vendor must help you complete compliance requirements. It must ensure that your retail operations follow government and industry regulations.

Examples of compliance standards are the Payment Card Industry Data Security Standard (PCI-DSS), the Telephone Consumer Protection Act of 1991 (TCPA compliance), and the National Do Not Call Registry (DNC).

Compliance can benefit you because it:

  • Protects you from facing hefty fines, penalties, and even imprisonment
  • Prevents you from losing clients or reputational damage
  • Improves customer trust because the public sees you as a law-abiding organization
  • Enhances business insights and strategies as you align compliance needs with your processes
Call center headset

5. Does the BPO Company Offer Multichannel and 24/7 Support?

Select a service provider that online shoppers can quickly contact at any time of day. It should have multichannel or omnichannel support for seamless communication between agents and customers.

Multichannel functions include:

  • Phones (fixed lines and mobile)
  • Email
  • Live chat
  • Chatbots
  • Social media
  • Community forums
  • Self-service options

Multichannel and around-the-clock support can benefit you because it:

  • Allows consumers to contact you through their preferred communication channel and at their convenient time
  • Provides smooth communication between customers and agents without interruptions or loss of contact
  • Broadens market reach, enabling you to reach buyers who are heavy users of social media and messaging apps, such as millennials

6. Does the Third-party Provider Use the Latest Technologies?

Work with a BPO firm that applies the latest customer service platforms, tools, and software in its daily operations. It must depend on help desk and customer relationship management (CRM) solutions to manage processes and monitor consumer behavior.

Using the latest technologies can:

  • Improve agent output because they can monitor each employee’s performance
  • Raise consumer satisfaction and experience because agents learn more about the customers by using the tools to check their histories, previous complaints and inquiries, preferred communication methods, and more
  • Help agents manage a high volume of customer calls and inquiries across communication channels

7. Is the BPO Company Transparent With Its Service Rates?

Cost-effectiveness might be your biggest motivation for outsourcing retail functions. Request the potential partner to provide you with the complete list of charges and other pricing plans. Inquire about their hidden and extra charges, if any.

Service fee transparency is beneficial because it:

  • Enables you to make a budget and manage costs better
  • Builds your trust and confidence in the BPO partner
  • Allows you to conduct a cost-benefit analysis to determine whether partnering with a prospect is feasible

8. Does the Service Provider Consider Customer Service a Revenue Driver?

Partner with a service provider that manages customer service to drive revenue. The third-party vendor must not only view consumer service as a means of assistance but also as a crucial part of enhancing your brand image.

Customer service as a revenue-generator can:

  • Increase repeat business because of higher customer retention
  • Contribute to the company’s long-term growth
  • Decrease marketing and advertising costs because you don’t need to focus on finding new customers; your existing market base provides a steady income stream

Final Thoughts

Outsourcing customer service is a significant business decision. Conduct detailed research, ask for expert assistance, and weigh the costs and benefits before deciding to outsource your customer service. This strategy can make or break your ecommerce business.

 About the Author

Rene Mallari is a B2B content writer for Unity Communications, an Arizona-based Inc. 5000 company specializing in outsourcing and offshoring services.

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E-Commerce Payments: 5 Ways to Reduce Costs https://www.customerservicemanager.com/e-commerce-payments-5-ways-to-reduce-costs/ https://www.customerservicemanager.com/e-commerce-payments-5-ways-to-reduce-costs/#respond Thu, 04 Aug 2022 11:41:41 +0000 https://www.customerservicemanager.com/?p=34359

Rob Crutchington at payment service provider Encoded discusses how choosing the right gateway services solution can help increase e-commerce transactions, reduce costs and improve customer experience (CX).

For online and MOTO* merchants ensuring transactions are processed quickly and securely, and at least cost, is business critical. Higher payment costs can mean higher prices for goods and services, which means to remain competitive merchants are keen to minimise their payment costs.

For payment services, it’s not just a question of finding the latest technology or best value solution, security and compliance are key factors to consider. It is essential to protect both the customer and the merchant. It is also important that adherence to the latest regulations does not impact the transaction process and result in a poor customer service.

Declined transactions can occur for different reasons and potentially result in losing both revenues and customers through a bad payment experience. Failed payments that are rejected by the acquirer or issuer due to the cardholder’s incorrect information, authentication tools or even insufficient funds, can often only be fixed by the customers themselves. However, there are ways that merchants can reduce the number of declined transactions with the latest payment technologies and agent training.

The goal is to ensure every transaction is processed quickly and at least cost. A gateway services solution bridges the gap between the merchant and the chosen payment acquirer and bank, helping to speed up payment approval by the card holder’s bank and confirm settlement. Choosing the right gateway services solution, working alongside a robust, secure payment processing platform can help to achieve frictionless payments – better for cashflow and customer experience.

At Encoded we’ve identified five criteria to consider when choosing the right payment solutions:

1. Ensure least-cost acquiring with dynamic selection

Payment gateway solutions bridge the gap between merchants and acquirers. Only truly independent gateways are able to search for the least-cost acquirer at the time of the transaction.

To save money on each transaction merchants can now access new payment gateway functionality to allow least-cost routing for online and contact centre transactions. Choosing a dynamic acquirer solution that selects the least-cost option each time, means faster, cost-effective payments which ultimately means improved cashflow.

2. Provide a frictionless experience for customers 

The faster the transaction process happens, the quicker the payment can be approved by the card issuer and acquirer and settlement is confirmed. Choosing the right payment services gateway, in association with PCI DSS compliant payment solutions, helps ensure a frictionless, secure process. Integration with open banking services also provides more payment choices for the customer, which is increasingly important in a competitive market.

3. Prevent fraud with secure processes

With fraud on the increase, today’s customers want to be assured that every transaction is secure. For the merchant this means being PCI DSS compliant and adherence to the Payment Services Directive (PSD2) and the latest Strong Customer Authentication (SCA) regulations. SCA is now mandatory (since March 2022) and provides customers with the extra layer of security to help make card payments safer. My next article will outline how SCA is working for merchants and customers alike in tackling fraud.

Gateway services solutions must provide both a robust infrastructure and ensure compliance and security assurance.  A secure token vault can help to safely store card data, while additional protection from fraud can also be provided with a solution like Encoded’s Fraud Prevention Platform. (FPP). FPP helps to improve conversion rates and customer service in contact centres when combined with Encoded’s Agent Assisted Payments. Agents can advise the customer that an additional level of validation is required when a payment is declined. Using Gov.uk Verify, 3D secure or Open Authorisation (OAUTH) to prevent fraud helps increase successful transactions.

4. Keep your developers happy while reducing development costs

Choosing the right payment solutions will facilitate secure, faster customer transactions, improve the customer experience and can help to keep your development team happy. Selecting a technology platform with a developer friendly API and that enables user acceptance testing (UAT) and test environments means smoother, cost effective integration and implementation enough to make any developer smile.

With Encoded’s Gateway Services, seamless integration with other Encoded payment solutions such as Agent Assisted payments, IVR and PaybyLink can also reduce overall costs and improve CX.

5. Make your e-commerce payment pages your own

To offer the best consumer experience merchants want their e-commerce payment pages to reflect their company’s look and feel. It’s important to choose a solution that (using Hosted Payment Fields) gives developers (and merchants) control of their e-commerce pages. It helps avoid customer confusion by providing consistent branding and means changes can be made easily at any time.

Before you choose your gateway services solution put these five criteria on your shopping list. With robust, reliable technology solutions that are secure, compliant and work together to deliver the best possible customer experience – you can ensure every transaction is a profitable one. 

*MOTO – Mail Order/Telephone Order

*PCI DSS – Payment Card Industry – Data Security Standard

Rob Crutchington is Managing Director at Encoded.

Rob Crutchington MD EncodedEncoded is an independent Payment Services Provider and Payment Gateway specialising in secure payment solutions for contact centres.  Encoded offers a range of card payment solutions designed to help organisations comply with PCI DSS, GDPR and the newly introduced Payment Services Directive (PSD2).

Encoded’s solutions are trusted by many of the world’s leading brands including Samsung, Mercedes-Benz and BMW,as well as a host of UK utility companies such as Green Star Energy and Severn Trent Water.  Solutions include:  Agent Assisted Card Payments, E-Commerce Payments, IVR Payments, Mobile Apps, PayByLink Mobile Payments and Encoded Gateway Services.  For further information please visit www.encoded.co.uk

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E-Commerce Customer Service Best Practices https://www.customerservicemanager.com/e-commerce-customer-service-best-practices/ https://www.customerservicemanager.com/e-commerce-customer-service-best-practices/#respond Thu, 30 Jun 2022 17:53:33 +0000 https://www.customerservicemanager.com/?p=33708

As an online business owner, you know that providing great customer service is essential to your success. After all, happy customers are more likely to return and make additional purchases.

In this article, we will discuss some of the best ways to provide excellent customer service for your e-commerce store. We’ll cover everything from responding to inquiries quickly to handling returns and refunds. By following these tips, you can ensure that your customers are happy with their shopping experience and will be more likely to come back in the future!

Here are some of the best ways to provide excellent customer service for your e-commerce store:

Respond to customer inquiries quickly

Customers should not have to wait long for a response from you. If you can’t answer their question right away, let them know that you are working on it and will get back to them as soon as possible.

Offer multiple channels for customer support

Some customers may prefer to contact you via phone, while others may prefer email or live chat. Make sure you are accessible through the channels that your customers prefer.

Outsource your customer service

If you are looking for a way to improve your ecommerce customer service, Ecommerce customer service outsourcing is a great option to consider. With the help of a reputable outsourcing company, you can provide top-notch customer service that will keep your customers coming back for more.

Handle returns and refunds promptly

If a customer is not happy with their purchase, it is important to handle the return or refund swiftly. This will show them that you are concerned about their satisfaction and want to make things right.

Be available to answer questions

Make sure you have someone available to answer customer questions during business hours. This could be someone in your customer service department or even a live chat operator.

Train your customer service team members

Your customer support team should be knowledgeable about your products and services and know how to handle common customer questions and concerns. Training will help to ensure that your customers have a positive experience when they contact customer service.

Follow up with customers after their purchase

Once the transaction is complete, follow up with the customer to make sure they are happy with their purchase. This is a great opportunity to offer additional support if needed and thank them for their business.

Use automated systems

Utilize automated systems such as live chat or a customer service software to help you provide more effective service. These systems can help you keep track of customer inquiries and make sure that they are answered in a timely manner. Use technology to automate repetitive tasks, such as sending follow-up emails or processing returns. This will free up your customer service team to handle more complex issues and provide a better experience for your customers.

Keep your customers updated on the status of their orders

Your customers should know when their order has been shipped and when they can expect to receive it. If there are any delays, be sure to communicate this to your customers. They will appreciate the transparency and be more understanding if there are any issues.

Host your ecommerce store with a reliable web host

A good web host will provide you with the tools and resources you need to run your online store, as well as excellent customer support. This is important because if something goes wrong with your website, you’ll need to be able to contact your web host for help.

Offer self service

Customers should be able to find the answers to their questions without having to contact customer service. This can be done by providing a searchable knowledge base or FAQ section on your website. You can also provide step-by-step instructions for common tasks, such as ordering, returns or refunds. Self service will reduce the number of customer service inquiries you receive and free up your team to handle more complex issues.

Offer a loyalty program

A customer loyalty program can help you reward your best customers and encourage them to continue doing business with you. loyalty program. A good loyalty program can also help you to upsell and cross-sell products to your customers.

Offer personalization

Make your customers feel special by offering personalization. This could include customizing products, sending handwritten thank you notes or creating a VIP customer service experience. By making your customers feel like they are valued, you can encourage them to continue doing business with you.

Use data to improve your customer service

Collect data from your customer service interactions and use it to improve your processes. This data can help you to identify areas where your customer service could be improved and make changes accordingly.

Be proactive

Prevent issues before they happen by being proactive. This could include offering live chat on your website, so customers can get help right away, or sending order confirmation emails to ensure that customers have all the information they need about their purchase.

Send out coupons or discounts

Coupons and discounts are a great way to show your appreciation for your customers’ business. Coupons and discounts can also help to encourage customers to buy again in the future.

Run promotions or giveaways

Customers love getting free stuff, so this is a great way to show them that you appreciate their business. Promotions and giveaways can also help to increase brand awareness and encourage customers to tell others about you.

Ask for feedback

Customer feedback can be extremely valuable, so don’t be afraid to ask for it. You can use this feedback to improve your products and services. Conduct a feedback survey, or even include a question about customer satisfaction on your order form.

Use these tips to improve your ecommerce customer service and provide a better experience for your customers. By following these best practices, you can ensure that your customers are satisfied with their shopping experience and will be more likely to come back in the future.

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5 Best Practices to Improve Customer Service Experience in Ecommerce https://www.customerservicemanager.com/5-best-practices-to-improve-customer-service-experience-in-ecommerce/ https://www.customerservicemanager.com/5-best-practices-to-improve-customer-service-experience-in-ecommerce/#respond Fri, 17 Jun 2022 05:28:31 +0000 https://www.customerservicemanager.com/?p=33500

The revenue of most businesses is directly tied to the customer experience. 

That shows that customers value the shopping experience as much as the product’s price. Research shows that most customers are likely to spend more for a better experience.

That’s why every ecommerce business must incorporate practices that will improve the customer service experience. This will help the businesses maintain a large market share. It will also help them grow their brand reputation. Here are five best practices to improve the customer service experience.

Personalize customer service and conversations

Personalizing customer service and conversations improve customer service experience. Tailor your support and service to their exact needs and expectations. If you customize services to meet the demands of every client, you will gain a competitive advantage in the market. And this is the perfect way to gain more sales.

That means you deliver fast. And this makes customers feel more connected and reinforces a sense of satisfaction. You can personalize every conversation with the customers in different ways. Engage with the customers with their basic understanding. Analyze whatever they are talking about before making your point. 

Offer free demonstrations to the customers through a video. Mention some of the supportive customers by their names during the process. Increase the number of customer service representatives. Develop customer profiles on your website. Add a messaging option to talk to each client.

To personalize customer service and conversations through a website, ensure that the UX is great. The conversion rates in the online store should be high. That’s through the use of standard technologies that are available in the market. If your UX is not up to the mark, a web app that serves as both a web page and mobile app across various devices is the best solution. You can use Vue Storefront PWA to give your customers an experience on par with the native apps. That’s applicable if you are using the headless commerce architecture. You can customize the customer service and conversations to meet their needs. This will help you improve the customer experience. 

Build a strong customer service team

Effective customer service teams play a vital role in enhancing your clients’ experience. So, how do you manage to build a strong customer service team? Start by training the existing staff. This will equip them with the skills needed in the current market trends. Services in the ecommerce businesses have changed, and so have the clients’ expectations.

You can also hire an excellent customer service team and create an environment that promotes staff retention. Remember that conversational engagement platforms are only meant to augment human agents. They do not replace them entirely. They help reinforce the services offered.

Software architectures based on headless commerce will help you differentiate the customer experience. The API architecture gives business owners great ability to tailor-made their eCommerce system. They can make it exactly what the clients need. So, ensure that you equip customer service agents with tools to engage customers. It will help them understand their needs.

Make use of key performance indicators

Every business looks forward to improving its performance. But how is this possible? It’s hard without adequate and quality performance information. You can gauge your customer services using key performance indicators. The right performance indicators will help you measure and track customer experience.

This helps to understand how you can tie consumer experience to business success. You will also learn how clients’ interactions change over time. Some key performance indicators include the customers’ rate of return. The revenue generated per the customer and the net promoter score.

The customer return rate reflects the success of the strategies applied. How have you enhanced customer service in your ecommerce business? If the customers enjoy the services provided, they are likely to return more to the business. Revenue generated per customer ties the client’s experience to the goal of the business. The net promoter score reflects the customer’s experience of the ecommerce business.

Collect and act on customer feedback

Is there a better way to understand how customers feel about your product than using their feedback? Customer feedback helps you gauge the quality of the services you are offering. You will also understand your consumer needs, pain points and challenges. It also helps to identify shoppers’ positive and negative experiences.

When customers are asked for feedback, they feel valued. This helps to build more trust among them. To get quality feedback, put in place intuitive ways to communicate with the clients. Ensure that you provide actionable insights to every customer care agent. There are several ways you can collect customer feedback to ensure that your ecommerce business runs smoothly.

You can send customer satisfaction surveys online or organize feedback focus groups. Build an online community for the customers and read reviews from third-party review sites. After gathering the correct information, then act on it. You can switch to headless commerce architecture and work with modern frameworks. This way, you build fronted layers that allow improved performance and deliver a better user experience.

Providing consistent cross-channel experience

When doing an ecommerce business, you have to work with several channels. These channels must coordinate to achieve the company’s goal. A consistent cross-channel experience strategy promotes consistent customer support across all the channels. In this case, you must ensure that the clients can switch between web chat or social media. Still, ensure they can switch to SMS without service interruptions. Is this not a better way to get things moving smoothly?

It ensures that the customers get quick responses to their needs. And this will automatically translate to improved brand reputation and trust. There are several ways to implement a cross-channel experience. Ensure that the customers can reach the customer care representatives offline. It’s all about your availability.

Ensure seamless transition when moving the clients from one call to another. Decoupling headless commerce will allow you to blend different content and commerce. That’s for an improved digital experience that drives more customer engagement. Respond on time to the customer queries on every channel. Give practical and easy solutions.

Conclusion

There is no better way to get more sales than improving the customer service experience in an ecommerce business. Customers are the backbone of every ecommerce business. Without them, all these businesses will just fail. The five practices mentioned above will guide you on quickly improving the customer service experience. Each of them is equally important for your business. That’s why you should put into place several strategic methods  to achieve quality results.

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11 Ways an Ecommerce Business Can Give Excellent Customer Service https://www.customerservicemanager.com/11-ways-an-ecommerce-business-can-give-excellent-customer-service/ https://www.customerservicemanager.com/11-ways-an-ecommerce-business-can-give-excellent-customer-service/#respond Tue, 29 Mar 2022 18:45:18 +0000 https://www.customerservicemanager.com/?p=32148

Running an eCommerce business can be a lot of work. There are so many things to keep track of – inventory, shipping, marketing, etc. But one thing that is often overlooked is customer service. This can be a huge mistake, because customer service is one of the most important aspects of any business.

In this article, we will discuss eleven ways that you can provide excellent customer service and create happy customers!

1. Make sure your website is easy to use and navigate

Make sure your website is user-friendly and has a clear navigation so that customers can easily find what they’re looking for. A website that is easy to use and navigate is crucial for keeping visitors engaged. There are a few key things to keep in mind when designing your website to ensure that it is user-friendly. First, make sure that the layout is clean and organized. All of the important information should be easy to find, and visitors should be able to move seamlessly from one page to another. Second, use clear and concise text that is easy to read. Large blocks of text can be overwhelming, so break it up into smaller paragraphs with headings. Finally, include visual elements such as images and videos to add interest and variety.

2. Offer multiple methods of contact

Your website is your business’s window to the world, so it’s important to offer multiple methods of contact in order to make it easy for customers to reach you. The most common method of contact is a contact form, which allows customers to send you an email directly from your website. However, you should also offer a phone number and an email address. Additionally, you may want to consider adding a live chat feature to your website so that customers can get help in real time. By offering multiple methods of contact, you’ll ensure that your customers can always reach you when they need assistance. To make sure you have the budget to serve your customers well, consider looking for investors or organizations who will fund your project or give a grant for entrepreneurs.

3. Be responsive to customer inquiries and complaints

In today’s competitive marketplace, it’s more important than ever to ensure that your ecommerce website is responsive to customer inquiries and complaints. There are a few key things you can do to help ensure that your website is up to the task. First, make sure that your website has a clear and easy-to-use contact form. This will allow customers to get in touch with you directly with any questions or concerns they may have. Second, be sure to respond promptly to any customer inquiries or complaints you receive. Nothing is more frustrating for a customer than feeling like their concerns are being ignored. By responding quickly and efficiently to customer inquiries and complaints, you’ll help build trust and loyalty among your customer base.

4. Offer a variety of shipping options

Using ShipNetwork and offering a variety of shipping options on your ecommerce website is a great way to provide customers with the flexibility they need to get their purchases delivered on their schedule. You can offer different shipping options for different products, or even offer different shipping methods for different locations. For example, you could offer free shipping for orders over a certain amount, or expedited shipping for an additional fee. You could also offer local pick-up or delivery for customers who live close by. By giving customers a variety of options, you can make sure they’re able to get their purchase delivered in the way that works best for them.

5. Provide tracking information for orders

It’s important to provide your customers with tracking information for their orders. This way, they can see exactly when their purchase will be delivered, and they can track its progress along the way. Make sure you include the tracking information in the shipping confirmation email that is sent to the customer when their order ships. You can also add a link to the tracking information on your website’s order status page. Whichever method you choose, make sure that the tracking information is accurate and up-to-date so that your customers can easily track their orders.

6. Have clear and concise product descriptions

An ecommerce website is nothing without accurate and concise product descriptions. website Product descriptions are meant to give customers a snapshot of what your product offers without overwhelming them with too much information. The best way to write clear and concise product descriptions is to focus on the key features of the product and use simple language that can be easily understood by everyone. It’s also important to avoid using technical jargon, as this can make it difficult for customers to understand what your product does. Always be sure to proofread your website product descriptions carefully before publishing them, as this will help ensure that they are error-free and easy to read.

7. Include high-quality product photos

Including photos of your products on your website gives potential customers a better sense of what they are looking at and makes them more likely to purchase from you. The photo should be clear and in focus and taken from different angles so that customers can see the product from all sides. The photo should also show the product in use if possible. By following these guidelines, you can ensure that your website includes high-quality product photos that will help boost sales.

8. Give customers the option to return or exchange items

One of the key considerations for any ecommerce website is how to handle returns and exchanges. Customers want to know that they can return or exchange items if needed and giving them that option can help to build trust and confidence in your brand. There are a few different ways to provide customers with the option to return or exchange items. One is to offer a return policy directly on your website. This can be prominently displayed on the homepage or in the checkout process. Another option is to use a third-party service like Returnly, which provides customers with an easy way to initiate a return or exchange. Whichever approach you choose, make sure that you are clear about your policies and procedures so that customers know what to expect.

9. Offer free shipping or other incentives for customers

Incentives like free shipping can encourage customers to buy from your website rather than from a competitor’s website. Moreover, customers who receive free shipping are more likely to be satisfied with their purchase and are more likely to become repeat customers. Ultimately, there are many good reasons to offer free shipping or other incentives for customers. By doing so, you can increase sales, build customer loyalty, and improve your overall website experience.

10. Send thank you notes or gifts for loyal customers

In today’s fast-paced world it’s more important than ever to show your customers that you appreciate their loyalty. One way to do this is by sending thank you notes or gifts after they make a purchase on your website. This simple act of gratitude can go a long way towards fostering customer loyalty and repeat business. Always make sure to personalize the message; a generic thank you note will feel insincere and could even actively turn customers away. Instead, take the time to personalize each message or gift according to the customer’s individual preferences.

11. Ask for feedback and take it to heart

After a customer completes a purchase on your ecommerce website, there are a few different ways you can ask for feedback. One option is to include a link to a survey in the confirmation email that is sent to the customer. You can also add a pop-up to your website that appears after a customer has been on your site for a certain amount of time or include a brief survey at the end of the checkout process. No matter what method you choose, it’s important to keep your survey short and sweet – customers are more likely to complete it if it only takes a few minutes. Furthermore, make sure to clearly state how their feedback will be used, and thank them in advance for taking the time to provide it.

By following these tips, you can create a customer service experience at your online store that will keep your shoppers coming back for more!

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Omnichannel eCommerce for SMBs: How to Do It Right https://www.customerservicemanager.com/omnichannel-ecommerce-for-smbs-how-to-do-it-right/ https://www.customerservicemanager.com/omnichannel-ecommerce-for-smbs-how-to-do-it-right/#respond Wed, 22 Sep 2021 19:56:57 +0000 https://www.customerservicemanager.com/?p=28517

With the advent of online shopping, customers can now buy anything they want from anywhere at any time. As a result, brands and retailers have to be increasingly aware of reaching consumers through different channels.

This calls for a new approach to doing business, one that considers online shopping and brick-and-mortar stores. With omnichannel eCommerce, you have access to two channels that can bring your customers together. It mixes your offline and online presence and provides consumers with different ways to buy goods and services, whereas Nembol is another good option to multiply your online presence and grow traffic and sales!.

This article will give you recommendations on what you need to do to implement the best omnichannel approach for your business.

What Is Omnichannel eCommerce?

Omnichannel is the combination of all sales channels for one business under one website. With omnichannel eCommerce, companies can reach their customers more efficiently than ever before by targeting the right customer at the right time on the right channel.

How Can You Implement Omnichannel eCommerce For Your Business?

The nature of your business would influence the best omnichannel eCommerce approach. Nevertheless, the following best practices apply to every business:

1. Analyze The Current Marketing Tactic

The first step in creating a new strategy for omnichannel eCommerce is to audit your current one to see what worked and what didn’t. At the same time, email marketing tools can help you develop a stronger plan. In some instances, the most relevant insights can be obtained from your customer’s feedback on your social channel or eCommerce website.

Keep an eye on all of your platforms and brainstorm new approaches to your current marketing strategy. When developing an omnichannel strategy, put yourself in the shoes of the customer.

2. Improve Your Mobile Usability

The widespread use of smartphones is a major force behind omnichannel marketing. Today, mobile devices account for a significant portion of the client journey. According to a new eMarketer report, mobile devices will account for nearly half of eCommerce purchases by 2022 (see the graph below).

Retail sales graph

So, optimize your mobile site and provide the information in a way that works well. An excellent mobile website should be minimalistic, simple to use, and aid visitors in their buying journeys.

3. Create Highly Targeted Buying Guides

A buying guide is a great way to increase revenue in any omnichannel eCommerce store. The more a consumer knows about a product before they buy, the higher chance they’ll complete the purchase. That’s why your customer should be provided with detailed information about every single product you sell.

Moreover, eCommerce brands use buyer’s guides to educate, inform and influence shoppers. For example, an eCommerce fashion brand might create a buyer’s guide explaining how to wear different items in its fall collection. This buyer’s guide would include:

  • Print advertising.
  • Social media content (like videos and photos on Instagram).
  • Product pages that encourage readers to click through to the full buying guide.

4. Make The Most Of Coupons And Discounts

Omnichannel marketing is about reaching the target audience at every touchpoint. This means that the same message of your brand should be consistent across all channels, whether it be digital or physical. It also requires efficient use of promotions and discounts for greater customer engagement. Moreover, you will be able to keep track of all of your business actions using listing tools.

Over half (59%) of shoppers are still influenced by digital coupons, according to Invesp. Discounts and free shipping can also convince an unsure buyer. How can you make good use of promos and discounts in omnichannel marketing? It’s simple: by integrating them into your overall strategy.

5. Embrace The Power Of User-Generated Content

The world of marketing is changing, and the line between customers and brands is becoming blurred. The traditional break between online and offline marketing is quickly fading into the past as customers expect personalized experiences across all channels.

Marketers are under pressure to meet rising customer expectations through omnichannel outreach—and they’re finding that leveraging user-generated content (UGC) can be one of the most effective ways to do so.

User-generated content (UGC) is content created by consumers for consumers. One of the essential aspects of the current omnichannel marketing environment is to create a strong connection with your customers and make them feel like they are an integral part of the brand. This is where UGC comes into play. If you can find a way to use your marketing strategy effectively, you will have a substantial competitive advantage.

6. Incorporate Corporate Social Responsibility (CSR) Into Your Omnichannel Strategy

Aligning your business with a cause is one of the easiest ways to generate more brand awareness and loyalty. Your brand will seem more trustworthy, authentic, and reliable to consumers.

In addition, there are many tangible perks for aligning your company with a cause. Consumers want to support companies they believe in, and aligning yourself with a cause can increase sales or lead to positive press coverage!

As reported by NielsenIQ, 56% of worldwide consumers are willing to spend more to support companies that share their social values with them. It’s also vital to fully commit to your chosen cause, to develop content around it, and to use it to establish a community around your brand. This can serve as a solid foundation for your complete omnichannel approach if done effectively.

Conclusion

The evolution of online shopping has created a need for businesses to offer an omnichannel customer experience. As an SMB, it’s crucial to have a multichannel approach for your eCommerce site. By using multiple channels, it’s possible to reach more customers and boost overall sales. However, implementing an omnichannel strategy isn’t easy.

Businesses must ensure that they’re offering their products across all channels while still meeting customers’ needs. However, we’ve provided you with some valuable tips so you can implement an effective omnichannel eCommerce strategy for your business today!

About the Author

Efrat VulfsonsEfrat Vulfsons is the Co-Founder of PR Soprano and a data-driven marketing enthusiast, parallel to her soprano opera singing career. Efrat holds a B.F.A from the Jerusalem Music Academy in Opera Performance.

 

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Top 5 Ways to Boost Customer Experience on Your eCommerce Website https://www.customerservicemanager.com/top-5-ways-to-boost-customer-experience-on-your-ecommerce-website/ https://www.customerservicemanager.com/top-5-ways-to-boost-customer-experience-on-your-ecommerce-website/#respond Sat, 11 Sep 2021 11:18:16 +0000 https://www.customerservicemanager.com/?p=28336

In the aftermath of the Covid-19 outbreak with shifts in customer buying behavior from traditional shopping to online shopping or buying online and pickup in-store, the demand for an effective eCommerce platform became quite huge.

Some eCommerce platforms nowadays are even developed as a centralized system to support business owners in managing a business. If you want to find an eCommerce platform that can function as an ERP system, view here. On the other hand, running and managing eCommerce websites are not always successful if the business owners can not achieve customers’ satisfaction. This article will introduce you to some ways to improve customer experience on your eCommerce websites.

What is an eCommerce customer experience?

ECommerce customer experience simply refers to how you make your customers feel when they search or buy your products through your websites. It’s the perception that your customer has for your brand or business. Your eCommerce website visitors’ first impressions will primarily impact whether they return, how much they spend with you, and how long they stay as customers. Good customer experience is about winning your customer’s preferences.

online shopping

Why does eCommerce customer experience matter?

According to lianatech.com, 53% of shoppers say that they have stopped buying from an online store because of a bad experience or better service from the competitors. Similarly, 86 % of consumers are willing to spend more for a better customer experience, and 89 % of consumers switched to competitors after a bad customer experience, following an Oracle study on consumer and brand connections.

All the above data has proved that the value of a positive customer experience to a company is immeasurable. It has the power to increase or decrease sales. Your website can either breed frustration and doubt, or it can nurture a sense of trust and create an engaging consumer experience. In addition, a good customer experience also can help you reduce costs significantly since when you get customers’ satisfaction, good referrals can help you cut down a lot of website advertising costs.

eCommerce store

How to boost customer experience on your eCommerce website?

In order to win customer experience on your website, building a nice eCommerce website is not enough. Here we can recommend some effective tips for your references:

Build a user-friendly website

Your eCommerce website will most likely be your first point of contact or first impression with potential customers. That’s where your paid ads and organic traffic should go. And, as always, first impressions are crucial. If you send potential clients to a poorly designed eCommerce website, they will have a negative initial impression of your brand or business. A practical way for improving your client experience is to create a customer-centric eCommerce website. Besides, your eCommerce store should be simple to use and all your links and buttons are visible and easy to understand with carefully chosen font style, color, and backdrop. In addition, your website should have quick loading speed.

Optimize for mobile

According to SaleCycle, 65% of visits and 53% of sales were made on mobile devices. So it is necessary to create a mobile-friendly website to improve customer experience. Business owners should make the mobile version of the website easy to use, keep content clear and simple and increase the website’s mobile load speed.

Simplify purchasing processes

Around 60% of customers find it most annoying to have to fill out the same information again on a checkout page following data from SaleCycle. Therefore, it is a really bad experience that you can bring to customers if providing a complicated purchasing process with a long checkout form. From the time a customer comes on your product page to the time they make a purchase, the process should be quick and easy.

Engage with customers across all channels

Engaging with customers from different channels can help you build up and maintain a relationship. Business owners can interact with customers through industry forums, blogs as well as social media networks. Review sites are also a good place to engage with customers whenever they leave a review.

Personalization

Personalization is one of the most powerful factors driving customer loyalty. Utilizing data to get a deeper understanding of your customers; treat each customer as an individual and make them feel valued. Business owners can consider some personalized touchpoints such as:

  • Create some personalized discounts for customers on products or services that are relevant to them.
  • Store the customer’s history: Showcase a list of suggestions based on what a consumer has looked at, as well as a list of recently looked at things.
  • Communicate with customers in their native language
  • Personalize emails: birthday greetings or invitations to customer events.

Conclusion

In summary, an eCommerce customer experience strategy is just as crucial as a marketing strategy when it comes to developing your business. We hope that this post can help you realize the importance of improving customers’ experience on eCommerce websites and bring you some useful suggestions. Besides all the listed ways, there are many other tips that you can find to improve your customer experience. It all depends on how you apply them in reality, to build a successful business.

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Strong Customer Authentication: Three Things Every Merchant Needs to Know https://www.customerservicemanager.com/strong-customer-authentication-three-things-every-merchant-needs-to-know/ https://www.customerservicemanager.com/strong-customer-authentication-three-things-every-merchant-needs-to-know/#respond Tue, 13 Jul 2021 11:11:29 +0000 https://www.customerservicemanager.com/?p=27314

With online fraud on the increase, companies must take action to make sure they meet the updated version of the Payment Services Directive, PSD2, which will mandate Strong Customer Authentication (SCA), later this year. Adam Bromage-Hughes, Technical Director at Encoded, takes a closer look at the directive and discusses why SCA is so important for companies and customers.

The first Payment Services Directive (2007) levelled the playing field for payment institutions in the EU. It increased competition and set out common payment standards that benefited both customers and participators in the industry. The later revised PSD2, introduced in 2015, has resulted in an even more integrated and efficient payments market, with the key addition of Strong Customer Authentication (SCA). Over the last five years SCA has helped to reduce online fraud by making payments safer and more secure for customers. The Financial Conduct Authority (FCA) has announced the deadline for implementing full SCA compliance for e-commerce transactions is now 14 March 2022. Any firm that fails to comply with the requirements will be subject to FCA supervisory and enforcement action.

What has changed and why is SCA so important now? Here are three important things to know:

1. SCA protects businesses and the customer from online fraud

Strong Customer Authentication (SCA), often referred to as multi-factor authentication, assures the card issuer and acquirer that the transaction is genuine. Now with non-cardholder present transactions (online) at least two criteria need to be met to confirm the customer’s identity, whether in the form of something they know, (PIN) have (card) or biometric (fingerprint or voice recognition).

SCA protects both the merchant/company and the customer. If a customer pays online for goods using an SCA process, but later claims it was a fraudulent transaction, the bank or card issuer accepts liability. Previously a fraudulent transaction meant that the merchant had to refund the money and incurred additional chargeback costs. With debit cards the merchant was even more vulnerable to fraud, as the money could only be credited back if there was still cash in the bank account.

The latest version of Visa’s 3-D Secure is an example of the SCA process, where customer details are used by the bank or card issuer to assess the risk of the transaction. More robust than the earlier version that simply required a password, the details are confirmed and then a one-time password or code is sent to the customer as authorisation. 3-D Secure (often referred to as ‘Verified by Visa’) provides confidence from the card issuer and bank that the transaction is genuine. If a purchase is considered low risk by the bank or card issuer, then the transaction is processed immediately with no authentication required. This is often termed ‘frictionless flow’ since it provides a smooth customer journey. 

2. SCA will become mandatory on 14 March 2022

For companies selling online the initial deadline to meet the new PSD2 with SCA requirements was September 2019. However, with the UK leaving the EU and the recent COVID pandemic, the UK’s Financial Conduct Authority (FCA) has delayed the deadline until March next year. This means that any UK company that is performing transactions online (over the value of 50 euros or approx. £45) must have SCA in place by this date.

Transactions that do not meet the SCA requirements could be declined by the card issuer. The FCA will oversee and enforce the directive and repeat offenders of such transactions may be fined for non-compliance. Companies with high numbers of declined transactions could also see increased complaints, reduced customer confidence and suffer possible irreversible, reputational damage. Some transactions will be considered SCA exemptions, which include recurring payments (such as subscriptions) where the security checks are carried out in the initial set-up and ‘whitelisting’ where the recipient is a ‘trusted beneficiary’.

3. Working with the right Payment Services Provider helps achieve compliance

It can be costly and complex to implement secure online processes for transactions. With some acquirers, secure checks are carried out separately from the transaction processing. In this case the merchants must handle all of the secure online checks themselves, obtaining an authorisation code from the card issuer, and then passing it onto to the payment services provider to proceed with the transaction. Expensive to set up, the secure checks require resources and expertise to manage the mandatory technical and operational interfaces with third parties.

Working with an established payment services provider like Encoded means the transaction process and administration is managed from start to finish. The merchant captures the customer transaction and Encoded carries out all of the secure checks required by the acquirer to verify the card with the card issuer behind the scenes. With checks authorised, Encoded issues a secure link that takes the customer through the online process to complete the transaction.

Choosing the right payment service provider early on is an investment for the future. Encoded’s payment gateway is acquirer agnostic, which means that merchants can easily change banks without implementation costs.

With the next deadline of 14 March 2022 for SCA looming, now is the time to start thinking about how to protect your business from fraudulent transactions and how to comply with the new regulations.

Contact Encoded to find out how we can help you make the change.

About the Author

Adam Bromage-Hughes is Technical Director at Encoded

Adam Bromage-Hughes, Encoded

Encoded is a leading Payment Service Provider and pioneer of new and innovative secure payment solutions for contact centres.  Encoded offers a range of card payment solutions designed to help organisations comply with PCI DSS, GDPR and the newly introduced Payment Services Directive (PSD2).

Encoded’s solutions are trusted by many of the world’s leading brands including Samsung, Mercedes-Benz, BMW, Műller and Virgin, as well as a host of UK utility companies such as Green Star Energy and Severn Trent Water.  Solutions include:  Agent Assisted Card Payments, E-Commerce Payments, IVR Payments, Mobile Apps, PayByLink Mobile Payments and Encoded Gateway Services.  For further information please visit www.encoded.co.uk

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