ONLINE SHOPPER RAGE - Riverbed · between retail shopping website experiences across devices, consumers do not necessarily browse for ... Online Shopper Rage – September 2013

September 2013

ONLINE SHOPPER RAGEManaging retail performance in an omni-channel world

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www.riverbed.comOnline Shopper Rage – September 2013

E-commerce sales in Europe were €166 billion in 2012 and this is expected to rise to €188 billion during 2013, and represents 15.2% annual growth in 2012 (Mintel, E-Commerce – Europe – July 2013). Alongside this increasing volume of e-commerce sales, consumers expect a stress-free and time-effective solution to their purchasing needs. The development and proliferation of devices puts consumers more in control than ever, and these consumer expectations represent a challenge for retailers to meet.

Riverbed Technology commissioned Loudhouse to conduct primary research among online shoppers in France, Germany and the UK to understand their habits and frustrations when it comes to online retail shopping. By gaining a clear understanding of consumer attitudes to e-commerce, organisations can adapt and update their e-commerce procedures and

EXECUTIVE SUMMARY

The development and proliferation of devices puts consumers more in control than ever, and these consumer

expectations represent a challenge for retailers

to meet

RESEARCH METHODOLOGY

3,026 interviews were conducted online among online shoppers in the UK, France and Germany. All respondents had made an online purchase in the past three months:

• 1,022 respondents in the UK

• 1,001 respondents in France

• 1,003 respondents in Germany

Fieldwork was conducted between 24th and 31st July 2013.

Research was conducted by Loudhouse, an independent research agency based in London.

platforms to better meet consumer expectations. This will have positive implications both for consumers and for e-retailers.

The research uncovers high expectations from consumers. With a perceived lack of uniformity between retail shopping website experiences across devices, consumers do not necessarily browse for and buy online purchases on the same device. This is driven by a need for speed, reliability and ease of use, with online shoppers particularly impatient when it comes to slow-loading web pages.

This impatience has emotional implications for consumers who become stressed, anxious and even angry. The effects are even more far-reaching for retailers, where brand trust and reputation is eroded, and online purchases are abandoned if consumers have to wait too long for webpages to load.

http://www.riverbed.com

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The impact on retailers• Almost half of online shoppers (46%) would

abandon a purchase with a retailer if the web page loaded too slowly

• Nearly half (46%) agree that they think badly of a retailer if their web pages load too slowly

• Six in ten (61%) agree that if a website crashes during a purchase, they would think twice about buying from that website again

The need for speed• Over half (54%) of online shoppers do not agree

that most websites look and work the same regardless of which device is used for access

• The main reasons for not always browsing and purchasing a product from the same device centre on ease of use and on internet connection:

» 35% cite ease of typing and 28% mention the ease of website navigation

» Around three in ten say that speed (34%) and reliability (30%) of internet connection is a reason

• 35% of online shoppers in Europe would wait ten seconds or less for an online shopping page to load before giving up

• Across Europe, 38% of smartphone owners would wait ten seconds or less for an app page, but 35% for a web browser page

Nearly half (46%) agree that they think badly of a retailer if

their web pages load too slowly

Online shopper stress and rage• Seven in ten (70%) agree that slow online

transactions make them feel anxious about the success of a transaction

• Half (52%) of online shoppers do not think that websites should be slow to load or crash while online shopping - 41% feel this way and are irritated by it

• If a website is slow to load or crashes while online shopping, one in five (19%) would get angry

» The biggest frustration with online shopping is hidden charges (62%). Half or more also find intrusive advertisements (55%), website crashes/freezes (54%), slow website/ pages (53%) and website unavailability (49%) frustrating

• A third (33%) agree that online shopping can be more stressful than shopping in store

• 74% of online shoppers would like to get preferential treatment from an online retailer if they are a returning customer

Online retailers must keep a finger on the pulse of consumer demands and changing expectations. Amid a continuing difficult economic climate, e-commerce providers cannot afford to offer a sub-optimal experience to increasingly demanding and time-poor online shoppers. The growth of internet shopping has seen a proliferation of retailers and, while many shoppers admit to being loyal to a portfolio of e-retailers, they can easily approach a different website should they be let down by another.

With online shopping widely touted to be stress-free and convenient, it is vital that e-retailers keep true to that high expectation. The stress, anxiety and anger, as well as the financial and reputational risks to retailers, resulting from slow page loading are an unwelcome challenge to something that should be making lives easier. With the Christmas period approaching – already a stressful period for many – e-retailers would do well to ensure that their websites are up to speed with consumer expectation.


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THE IMPACT ON RETAILERS

Retailers are continuing to invest heavily in new technologies that seek to create and strengthen online consumer engagement, and many are managing this to a great success. However, retail decision-makers must look to strike the right balance between investing in customer acquisition and ensuring that the back office technology is in place to maintain the quality of user experience.

While customers may have once been tolerant over e-commerce’s shortcomings, the demand for fast, secure and simple online transactions has gradually taken precedent. Failure for online retailers to deliver these basic needs will simply result in lost sales. If consumers find themselves waiting too long for a web page to load, nearly half (46%) will consequently not pursue the purchase from that retailer.

Indeed, 61%, rising to 63% in France, agree that if a website crashed whilst they were trying to make a purchase, they would think twice about buying from that website again (see figure 1). Rather than being an unfortunate inconvenience, slow or underperforming websites provide a potential financial risk for retailers.

Retailers need to commercially prioritise the management of their customer demand

However, the implications go beyond immediate lost sales and could, in fact, damage a brand’s reputation among shoppers. Following a bad experience on a retailer’s website, 44% of online shoppers in Europe would doubt the quality of that retailer’s customer service (see Figure 2). Furthermore, 28% would lose trust in that retailer, rising to one in three amongst German shoppers (34%).

Focussing on slow-loading shopping web pages, there is a similar story of negative impact on e-retailers. Underperforming websites only serve to undermine customer faith in online brands. Nearly half (46%), rising to 53% among French consumers, would think badly of a retailer if their web page loaded slowly.

E-retailers are sitting on a potential shopping time bomb. If investment in sales and promotion technology continues to outweigh back room IT, customer satisfaction will drop and online rage will escalate.

Retailers need to commercially prioritise the management of their customer demand, particularly during times of peak traffic, where sales are driven

Rather than being an unfortunate

inconvenience, slow or underperforming websites provide a

potential financial risk for retailers

62%

61%

63%

57%

46%

47%

53%

37%

29%

28%

28%

28%

If a website crashed while I was actually puchasing something, I would think twice about buying

from that website again

When web pages load slowly, I think badly of that retailer

Retail websites are getting slower

Total UK France Germany

Figure 1: Slow loading times

by promotions and other incentives. Attempts to harness greater volume of sales are likely to back fire if websites are ill-equipped to handle the fluctuations in customer demand.

Brands cannot afford to be complacent about slow website speeds when consumers have high expectations of an online shopping experience and are empowered to take their disposable income elsewhere. Regardless of whether a customer is communicating with a brand through their mobile, desktop or face-to-face, there is an expectation for a consistent and seamless experience. While omni-channel provides a greater opportunity to increase sales, it also creates many challenges for retailers. Shoppers anticipate prompt and timely responses, be it speaking with a customer service representative or making a quick purchase, irrespective of the channel used.

Figure 2: Impact on retailer

If you have a bad experience on a retailer’s website while shopping online

If a retailer’s website is slow to load when you are online shopping

It makes doubt the quality of the customer service from the retailer

I don’t trust the retailer

The retailer doesn’t value me as a customer

It makes me doubt the quality of the product I’m buying

The retailer doesn’t value my time

None of these

Don’t know

30%

15%

6%

44%

21%

28%

29%

7%

16%

21%

16%

20%

14%

18%


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make them feel anxious about the success of a transaction, an emotion felt most in the UK (76%).

Rather than becoming a haven for simple and secure transactions, online shopping is fast becoming a worrying experience for some customers. Many shoppers (36%) admit that they sometimes find online shopping quite stressful, and a third (33%) agreeing that online shopping can be more stressful than shopping in store.

However for shoppers across Europe, this stress and anxiety has reached boiling point. Such are customers’ frustrations with the quality of their online shopping experience that they are reacting with strong emotions. If a website were to crash

ONLINE SHOPPER STRESS AND RAGE

The online shopping experience has significantly developed in recent years, with retailers investing heavily in new technologies which allow real-time interaction, targeted offers and promotions, and a personalised shopping experience for all shoppers. However, as the customer experience has evolved, so have shoppers’ expectations of this experience.

The success of e-commerce has been built on the solid foundations of speed and simplicity and, as such, customers fully expect both of these advantages when shopping online. Over half (52%)

55%

33%

62%

34%

54%

32%

53%

27%

49%

19%

2%

46%

15%

3%

46%

45%

45%

Don’t know

Hidden charges

Intrusive advertisements

Website freezes / crashes

Website slow / pages loading slowly

Website down / unavailable

Complicated registration / login process

Apparent successful transaction failed to complete

Lack of information about product / service / delivery

Website difficult to navigate / can’t find what i’m looking for

Unreliable internet connection

Unable to make purchase at first attempt

Checkout problems

Difficulty in getting any help / customer service on the website

Websites are not easy to use on a smartphone or tablet

Upselling and recommendations

Other

Figure 3: Thoughts if page loads slowly

believe that a website that is slow to load or crashes simply shouldn’t happen. Indeed, customers believe this shouldn’t happen at all and consequently get irritated (41%, rising to 58% in the UK).

If shoppers’ rising expectations are not met, their frustrations begin to grow. Failure to deliver the basics results in consumers becoming increasingly stressed. Further still, at a time where consumers remain under financial pressure, the threat of losing a purchase, or worst still, money, can be very daunting. Worryingly, seven in ten (70%) agree that slow online transactions

or load slowly, one in five (19%) shoppers admits to physically getting angry, more so amongst UK shoppers (22%). Seven per cent would moan about it on social network sites.

However, frustration in online shopping goes beyond a slow internet connection. Hidden charges (62%), intrusive advertisements (55%), website freezes (54%), slow loading pages (53%) and website unavailability (49%) all contribute to online shopping rage (see Figure 3). German customers are in particular sensitive about hidden surcharges (70%), whereas UK shoppers are easily annoyed by underperforming websites. Both frozen (62%) and unavailable websites (47%), in particular, frustrate UK consumers (see Figure 4).

Worryingly, seven in ten (70%) agree

that slow online transactions make them feel anxious about the success

of a transaction, an emotion felt most in

the UK (76%)


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FRUSTRATIONS OF ONLINE SHOPPING TOTAL UK FRANCE GERMANY

Hidden charges 62% 62% 54% 70%

Intrusive advertisements 55% 56% 48% 62%

Website freezes / crashes 54% 62% 42% 59%

Website slow / Pages loading slowly 53% 62% 46% 51%

Website down / unavailable 49% 47% 41% 58%

Complicated registration / login process 46% 56% 26% 55%

Apparent successful transaction failed to complete 46% 48% 40% 49%

Lack of information about product / service / delivery 45% 48% 34% 53%

Website difficult to navigate / can’t find what I’m looking for

45% 52% 34% 49%

Unreliable internet connection 34% 35% 26% 40%

Unable to make a purchase at first attempt 33% 37% 28% 34%

Checkout problems 32% 50% 24% 22%

Difficulty in getting any help / customer service on the website

27% 33% 21% 28%

Websites are not easy to use on a smartphone or tablet / not optimised for mobile

19% 25% 13% 20%

Upselling and recommendations 15% 17% 15% 14%

Figure 4: Frustrations of online shopping: Regions

Europe is fast becoming a continent of irate online shoppers, as consumers can no longer bear their frustration with online shopping experiences. Indeed, for a minority of shoppers this frustration manifests itself in rage. Whilst disappointment with an online retail experience may appear as an immediate inconvenience, shoppers face being turned off by an increasingly stressful experience.

Online shoppers in Europe report being relatively loyal to e-retailers, and they are calling for a reward for their faithful online shopping habits. Over two-thirds (69%) agree that they are quite loyal, buying most of their online purchases from a small number of online retailers. And three-quarters (74%) of online shoppers would like to get preferential treatment from an online retailer if they are a returning customer. At a time of high website demand where page loading times may be long, it can therefore be argued that returning and loyal customers should be the least likely to have their web experience jeopardised.

German customers are in particular

sensitive about hidden surcharges (70%),

whereas UK shoppers are easily annoyed

by underperforming websites

Online shoppers in Europe report being relatively loyal to e-retailers, and they are calling for a reward for their faithful online shopping habits


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Both the variety and sophistication of devices that consumers use to shop and browse online are increasing. As well as owning a laptop (82%) and desktop computer (70%), the majority of consumers in the survey (68%) now have access to a smartphone, with a further one in three (36%) owning a tablet.

Rather than relying on one or even two devices, consumers in practice use an array of devices and channels to conduct their online shopping. Shoppers may, for example, browse particular goods on their tablet, make the purchase on their laptop, but choose to return the product in store.

online purchases, rising to 67% in the UK, with one in three (32%) smartphone owners using their smartphone’s web browser for e-shopping browsing.

However, although a larger range of devices allows customers to have greater freedom, not all shoppers wish to convert their interest into purchases on particular devices. This browse-to-buy gap is greatest with tablets, with only one in three device owners (34%), rising to 42% in the UK, making purchases on this device. Both laptops (77%) and desktop computers (70%) have a smaller gap between browse and purchase habits among owners of each device (see Figure 6).

For e-retailers, managing the omni-channel is the next big priority. Consumers expect a seamless and consistent experience across all devices, even across online and offline platforms, and brands must ensure that they have a single view of the customer, no matter where and when they are engaging with the brand.

Part of the reason for not wanting to make a purchase with a particular device is due to customers’ perception of website aesthetics and functionality. Over half (54%) do not agree that most websites look and work the same regardless of which device is used for access, an attitude felt most strongly among German online shoppers (58%). A third (35%) note that the ease of typing and a quarter (28%) the ease of website navigation (rising to 40% in the UK) on certain devices as a barrier to completing a purchase online.

Despite developments in Wi-Fi and mobile communication, shoppers are still reluctant to complete online payments due to the speed (34%) and reliability (30%) of their internet connection. Indeed, tolerance of slow internet connectivity is low. A third (35%) of online shoppers across Europe would wait for ten seconds or less for an online shopping page to load before giving up. Among smartphone owners, a greater proportion (38%) would wait ten seconds or less for an app page to load before giving up, rising to 44% amongst Germans, with 35% waiting for the same period for their web browser.

Figure 5: Devices for browsing


Laptop

Desktop computer / PC

Tablet

Smartphone using the web browser

Smartphone using an app

82%

83%

80%

83%

78%

76%

80%

78%

55%

67%

41%

50%

32%

44%

23%

27%

26%

33%

20%

24%

Figure 6: Devices for purchasing


Laptop

Desktop computer / PC

Tablet

Smartphone using an app

Smartphone using the web browser

77%

79%

73%

78%

70%

70%

71%

71%

34%

42%

24%

31%

18%

22%

15%

17%

16%

20%

13%

5%

Over half (55%) of those with a tablet use this device to browse for potential online purchases, rising to

67% in the UK

THE NEED FOR SPEED

With a greater variety of devices available to shoppers, the online shopping experience has become easily accessible, allowing customers greater flexibility to search for their favourite products. When browsing for online purchases, 82% use their laptop while 78% search for goods or services on their desktop PC (see Figure 5). Yet advances in mobile communication have meant that consumers are no longer confined to their homes when browsing online. With improvements in ultra-broadband communication, shoppers have the ability to shop on the go. Over half (55%) of those with a tablet use this device to browse for potential


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CONCLUSION

The diversity and proliferation of devices has empowered today’s online customer. Shoppers now enjoy the luxury of flexible and remote online shopping, and with this, their expectation of the online shopping experience has grown.

While shoppers are content to browse for online purchases across multiple devices, their desire to complete purchases on a particular device is hampered by unreliable or slow internet access. Speed, reliability and ease of use are fundamental priorities for shoppers, and retailers must look to uphold these key pillars if they are to continue to engage consumers over time.

Impatience over slow-loading web pages has reached a point where retailers can no longer ignore the impact. Tolerance has steadily evolved into a stronger emotional reaction with shoppers experiencing stress, anxiety and, in some cases, anger. Rather than persisting with slow web pages, customers will opt to abandon their purchase and seek alternatives from other retailers.

Yet, the effects go beyond inconvenient annoyance. Retailers risk damaging their reputation if their websites continue to underperform, run slowly or

crash. In a market where brand loyalty and reputation are essential and built slowly over years, retailers must look to build trust by having a reliable and secure e-commerce process.

Back office functions, including a website that loads according to the expectations of time-poor consumers, are critical as a foundation for customer service, engagement and loyalty. With significant investment being made by e-retailers in sophisticated online tools, promotions and personalisation, it is the basics that need to be in place. Without the bare essentials, any added value efforts are largely in vain.

Brands must look to align their online experiences with an ever-increasing consumer expectation. If retailers fail to deliver speed and simplicity, not only do they risk the loss of immediate sales, but also repeat custom in the years to come. By creating an online shopping experience which is easy, fast, convenient and reliable, retailers remove the stress for customers and help harness their trust.

Building confidence in an online brand is vital and by removing the uncertainties that come with online shopping, retailers are taking the first step to building a successful long-term relationship with shoppers.


ABOUT RIVERBED

Riverbed Technology delivers application performance for the globally connected enterprise.

With Riverbed, enterprises can successfully and intelligently implement strategic initiatives such as virtualization, consolidation, cloud computing, and disaster recovery without fear of compromising performance. By giving enterprises the platform they need to understand, optimize and consolidate their IT, Riverbed helps enterprises to build a fast, fluid and dynamic IT architecture that aligns with the business needs of the organization.

Additional information about Riverbed is available at www.riverbed.com


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ONLINE SHOPPER RAGE - Riverbed · between retail shopping website experiences across devices, consumers do not necessarily browse for ... Online Shopper Rage – September 2013