Research carried out by digital agency Head London and experts at Oxford Economics found that over the period 2007 to 2010 retailers forfeited nearly £500m in achievable sales “by failing to deliver a truly integrated and tailored customer experience.”
The report, The Customer Service Deficit: Opportunities for growth in the retail industry singles out Morrisons, the UK’s fourth-biggest supermarket chain after Tesco, Asda and Sainsbury’s, as a major loser from not offering an internet shopping and home delivery services, which the research suggests could lift its annual sales by up to £314m. The group has now confirmed plans to launch a web-based delivery service by 2013.
By contrast Tesco’s digital offerings, which include a phone and web-based service, are estimated to contribute around £255m to the group’s annual sales. Homebase, Dixons, Phones4U, Sports Direct and DFS are also named as companies that need to upgrade their online services, while Boots and John Lewis are ranked with Tesco as among the best performers.
“We found a clear link between growth and multi-channel performance,” said Sam Moore, director of consulting services at Oxford Economics. “This confirms there is a commercial incentive to invest in a digital multi-channel strategy.”
Too many retailers are “behind the digital curve,” added Paul-Jervis Heath, head of design at Head London. “They usually have a mobile website, and even an app, but too often these services are not joined up. By not giving customers the information they need on the platform of their choice they are less likely to complete purchases.
“The key success factors for retailers are: enable customers to choose a purchase path which suits them best, create appropriate links between touchpoints, use mobile websites and mobile apps appropriately and treat customer support as an important part of customer experience.
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