HOW TO CREATE SUPERIOR CUSTOMER EXPERIENCES

AND INCREASE ROI

WINNING THE ONLINE

SHOPPING JOURNEY

IN ASIA

The retail industry has witnessed the emergence of

two key trends in the last decade: shoppers got

digital, and brands have gone direct-to-consumers.

New technologies and innovations have fueled

changing consumers expectations and behaviour,

forcing brands to change and adapt across the globe.

Asia’s B2C eCommerce market is estimated to

amount to US$1,298,002m in 2020, with an expected

annual growth rate (CAGR 2020-2024) of 7.3 percent,

resulting in a market volume of US$1,723,698m by

2024, according to Statista. The region alone takes

up 58 per cent of the eCommerce market worldwide

(US$2,237,959m)1.

The APAC market takes a significant share in the

realm of eCommerce, with no signs of slowing down.

This does not mean brands can sit back and see their

sales grow. The upward trend is also coupled with

intensifying online competition, steepening ad costs,

and ever-changing consumer behaviours. This leaves

brands with a heavier challenge to improve

customers’ experience across the entire journey.

US $1.3 Trillion

with 7.3%Expected Annual Growth Rate

Asia B2C eCommerce Market Size

21. | https://www.statista.com/outlook/243/101/ecommerce/asia

CUSTOMER EXPECTATIONS TODAY

STEP 1

Landing On the Site

STEP 2

Browsing Products

STEP 3

Considering a PurchaseOnline

STEP 4

Shopping O�ine

STEP 5

Checking Out

STEP 6

Order Fulfilment

Today's customers have higher expectations for quality

service and fair pricing, especially compared to a

decade ago. Customers now want personalised

interactions and connected experiences across their

journey. According to PwC, 86% of buyers are willing to

pay more for excellent customer experience2. These

expectations continually evolve and expand with

technology.

With a wide array of choices and technology at their

fingertips, it's easier for customers to compare products

and brands. It's also easier to switch brands to seek

experiences that match their expectations.

The online space is undoubtedly a critical and

indispensable part of shaping of a customer’s

experience. This whitepaper focuses on highlighting

the di�erent stages when Asian customers' weave

through eCommerce sites and o�ine retail, and to

point out key areas where brands should act to win

over customers as competition intensifies.

32. | https://www.pwc.com/us/en/advisory-services/publications/consumer-intelligence-series/pwc-consumer-intelligence-series-customer-experience.pdf

STEP 1

LANDING ON THE SITE

SolutionExpectationWant Smartphone-Ready,

Fast-Loading and Relevant

Content

Fast Loading to Prevent BounceThe modern-day shoppers’ attention span is short.

They expect immediate availability of information with

digital devices and online. Research by Google shows

53% of visitors will abandon a mobile website if it takes

longer than three seconds to load, and each second

delay in loading has been associated with a 7% drop in

conversions3. According to Magento’s 2019 APAC

survey, over one in three customers expect the site to

load quickly.

Mobile Readiness for the Mobile-First RegionOn top of fast loading speed, it should not come as a

surprise that consumers also expect eCommerce sites

to be mobile-friendly. This is particularly more important

for Asian consumers as it is a mobile-first region.

A 2018 International Post Corporation (IPC)

Cross-Border E-Commerce Shopper Survey revealed

that 52% of Asian customers prefer smartphones for

online shopping, compared to 33% of the total global

average4. In Magento’s 2019 APAC survey, almost 40%

of customers said they want a retailer's website to work

seamlessly on smartphones5.

Content Relevancy is KeyA visitor could land on a brand’s eCommerce site

throughout di�erent stages of their purchase journey,

and from di�erent channels. Maybe they're conducting

initial searches on Google, comparing prices from a

blog article or go directly to a site to purchase. It is

essential to match your online store with the content

visitors expect to see, otherwise you risk losing

customers.

Progressive Web Apps Mark the Next Evolution in Mobile-Driven CommerceTodays’ tech-savvy Asian shoppers’ experiential

demands on mobile experiences can be met with

Progressive Web Apps (PWA). PWAs mark the next

evolution in mobile-driven commerce. They are

websites that behave like native apps, allowing

shoppers to enjoy an intuitive, immersive browsing

experience, faster speeds and push notifications.

Platform Speed to Handle Large SitesTop platforms can help optimise speed regardless of

tra�c fluctuations, as well as map user activities. One

example is Magento’s Content Delivery Network (CDN)

Fastly.

CDN Platforms like Fastly help:

• Provide personalised suggestions by serving more

content from cache, like shopping cart information or

other details.

• Instantly and automatically remove stale content to

ensure that customers see accurate inventory,

catalogue, and pricing data.

• Absorb tra�c spikes, so the website won’t go down,

even during flash sales, peak seasons, or a

Distributed Denial of Service attack.

Map Site Contents with Customers Journeys in MindWhen revamping a site or building a new one, be sure

your new site navigation and content uses insights

from your customer journey map. This helps ensure

that the relevant content gets displayed when your

customer comes to the site through di�erent channels.

For example, you want content that talks about

marathons, fun runs and the latest trends for your loyal

female runners browsing your athletic shoe website.

52% of Asian customers prefer smartphones for

online shopping

Now that customers are staying on your site,

WHAT’S NEXT?

4

3.

4.

5.

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|

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https://www.thinkwithgoogle.com/marketing-resources/data-measurement/mobile-page-speed-new-industry-benchmarks/

https://info2.magento.com/rs/585-GGD-959/images/Magento_Consumer_Insights_APAC.pdf

https://www.ipc.be/news-portal/e-commerce/2019/04/11/09/37/online-shoppers-in-asia-give-a-glimpse-of-an-e-commerce-future

STEP 2

BROWSING PRODUCTS

Solutions

Consumers Want Easy to

Navigate & Personalised

Suggestions

Personalised Recommendations are

2x More Effective

InsightYour Visitors Are Looking for

Information

So, what are visitors doing on a site if the majority of

them do not convert? Depending on the sector and

type of product, a consumer can use six to 10 di�erent

sources and think up to months before making a

purchase.

Knowing that the majority of visitors seek information,

your website needs to meet customers' expectations

and match their browsing behaviours to drive them

down the sales funnel.

Magento’s survey reveals that 32% of APAC customers

said website and in-app experiences should be great

whenever they shop, and 31% said that the website

should be easy to use and navigate - with a good

search function and ease of finding what they need4.

For 27%, it’s important that when they shop online, the

website gathers data to suggest products they might

like. However, brands must be careful in handling data

when triggering product suggestions because if a

retailer suggests a wrong product, 20% would stop

using the retailer’s eCommerce website.

99% of Tra�c Does Not Convert

Transfer Retail Store Experience OnlineShoppers' core behaviours are very similar in both

online and o�ine, even if their environment is di�erent.

When a customer steps into a retail store they have an

intention in mind, like finding a dress for a birthday

party. A customer will browse to find a product, asks

sales sta� for suggestions and where to find what they

want. Similarly, on eCommerce sites, a visitor either

navigates through menus to get to the best section, or

uses search. In both instances, they expect to see

suggestions for the 'best party dresses'.

Your eCommerce site needs to fulfil visitors’ search and

suggestion needs — the same way a top sales

associate does in a brick-and-motor store.

Advanced Search Powered by Artificial IntelligenceThe search experience can be enhanced with smart AI

and image search, which is getting more common

among fashion retailers and marketplaces. Today’s

consumers — especially those between the ages of 18

to 34 — show a growing interest in using visual search

and image recognition in order to discover new brands

and products.

Enhanced Shopping with PersonalisationBrands can explore displaying dynamic content based

on previous purchase behaviour, tra�c source,

geo-location, demographics and other captured data.

Just like retail sales sta� o�ering product suggestions

in-store, your eCommerce site can provide the same

service, powered by AI.

Research agency Barilliance has found personalising

recommendations made them 2x as e�ective as

non-personalised recommendations, and customers

who click on recommendations have a 70% higher

purchase rate6.

Insight

56. | https://www.barilliance.com/dynamic-content-examples/

STEP 3

CONSIDERING A PURCHASE ONLINE

SolutionInsightUser Generated Contents are

More Valueable than KOLs

InsightSocial Media Influence on

Purchase

The report State of Social Commerce in SoutheastAsia by Magento, Hootsuite and EConsultancy shows that 48% of Southeast Asian customers find photos and videos from real customers the most valueable social promotion. Only 21% of consumers find influencer contents valueable on social media7.

According to the 2019 State of Social Commerce in Southeast Asia’s survey, 44% of respondents said they made three or more online purchases in a month, upon seeing social media posts or ads. Nearly 60% of those surveyed agree that social media influences more than a quarter of their online purchases7.

Gains from Online Reviews There are few ROIs you can track with online reviews.

The first metric is to check for conversion rate

increases, as customers generated reviews help build

brand and product credibility. Conversion rates will

increase the sharpest during the initial stages of review

volume growth.

Secondly, the SEO ranking on Google boosts authority

on search engines with long-tail keywords.

Lastly, brands can use online reviews to provide

product insights by extracting customer suggestions or

to identify product flaws.

Digital Campaign to Prompt Social SharingShoppers in Asia are happy to talk about their

purchases online. The 2019 State of Social Commerce

in Southeast Asia found that the majority (82%) of

respondents share purchases via their social networks,

amplifying the impact of buying online7.

Retailers should consider digital campaigns that

incentify and consolidate user generated content, to

maximise their gains.

After online reserch, consumers go

OFFLINE

48% of Asian customers find user generated contents most valueable

social media influences over 1/4 of their online shopping

6 in 10 agree

67. | https://info2.magento.com/The-State-of-Social-Commerce-in-Southeast-Asia.html

SolutionInsightRetail Stores Are Here to

Stay as the Prime Touchpoint

While some customer are convinced to buy products

after checking online reviews and social posts, others

will still visit in-store to see the actual product.

O�ine retail stores remain a key touchpoint in the

consumer journey in Asia. Wiser’s 2019 survey on

shoppers’ expectations showed that stores are still a

go-to for customers, where 52% of its survey

respondents are still more likely to purchase in-store

than online.

The main motivators of in-store shopping:

Product availability 64%

Store location 56%

Test items 54%

Instant gratification 51%

No shipping costs 49%

The in-store experience 39%

Easier return methods 37%

Research by the Harvard Business Review shows that

when someone first visits the physical store before

purchasing online that order baskets are 64% higher

value8. Omnichannel experience, if properly executed

by brands, not only will grow loyal customers but also

increases sales.

Seamlessly Weave Online and O�ine JourneyRetail brands are implementing unique features such as

“In-store Viewing” and "Enquire Size" functions on their

eCommerce sites. This allows customers to book time

in-store to view products for a personalised and true

omnichannel experience, contributing to increased

footfall and conversions.

Bring Visitors Back Online with Next-Level In-Store ExperienceThere are various tactics brands can use to tie

customer experiences across channels. Brands with

retail outlets can consider adding in-store interactive

screens or provide handheld tablets to boost

conversion rates. And when a customer can't find what

they want in-store, or faced with out-of-stock situations,

sales sta� can still complete the purchase online.

You can also use these same tools to incentivise sales

sta� to close sales and improve customer service.

Digital screens can be used by the digital-savvy

customers to browse through products and improve

product knowledge.

Customers are not ready to purchase immediately,

these tablets and interactive screen come into play. A

QR code can be created to transfer the instore wish-list

to a customer's phone that provides a direct link to the

brand's eCommerce site. Their wish-list are shown on

their phone's browser directly to the brand's

eCommerce site.

Order Baskets are 64% Larger When Purchased

Online After Visiting Physical Store

STEP 4

SHOPPING OFFLINE

78. | https://hbr.org/2018/06/5-surprising-findings-about-how-people-actually-buy-clothes-and-shoes

Shoppers expect a simple checkout process as well as

one-click purchasing through an app or website. As

Magento’s survey revealed, purchasing speed is

important for more than a third (35%) of APAC

respondents3.

Aside from fast checkout, customers feel strongly

about being able to choose their preferred payment

method.

Asian customers will only shop with retailers that o�er

the following payment methods:

It’s been an on-going battle for eCommerce sites to

fight cart abandonment. Seven out of 10 carts are

abandoned globally. According to SalesCycle, fashion

eCommerce stores in Asia Pacific su�ered a 69.8%

abandonment rate9.

There are many reasons why this happens. Barilliance's

research shows that unexpected extra costs account

for 60% of abandoned carts10.

60%

37%

28%

23%

Top Reasons for Abandoning Cart

Unexpected Extra Costs

Require Account Creation

Long Check Out Process

Order Total Cost Unavailable

STEP 5

CHECKING OUT

SolutionInsightRequire One Click and

Suitable Payment Method

The On-going Battle of Cart

Abandonment

O�er Localised Payment ChoicesBrands in Asia need to consider pushing non-card

payment methods, including e-wallets, bank transfer,

cash-on-delivery and convenience store payments. It is

also important to be mindful of local preferences

across Asian countries. For instance, cash-reliant

countries like Indonesia seek bank transfers as an

alternative online payment mode. Taiwan and

Philippines see paying at convenience stores as a

reliable and practical option.

According to Adyen’s 2019 article about non-card

payments, e-wallets like Apple Pay, Google Pay,

GrabPay (across SEA), Momo Pay (in Vietnam), and Pay

Maya (in the Philippines) are gaining popularity as

payment options in the region11.

Recapture Sales through Marketing Automation

An immediate ROI can be realised if you set up

automatic abadoned cart emails to recapture lost sales.

But don’t stop there! Continue to improve your email

campaigns by testing di�erent content. For example,

on top of showing cart items in the email, o�er

additional discounts or free shipping improve

conversion rates.

Also as mentioned earlier, user generated reviews can

be maximised by retailers to encourage conversions.

Insight

39%

30%

28%

25%

Credit Card

Debit Card

E-Wallet Payments

Cash-On-Delivery

8

9.

10.

11.

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https://www.mumbrella.asia/2016/07/apac-e-commerce-transaction-abandonment-rates-worlds-highest-and-rising

https://www.barilliance.com/10-reasons-shopping-cart-abandonment/

https://www.adyen.com/blog/Non-card-payment-methods-in-Southeast-Asia

STEP 6

ORDER FULFILMENT

SolutionInsightOn The Watch For Flexible

Delivery

Another stage of the shopping journey where

customers expect a range of options is product

delivery. Asian customers prefer flexibility when

choosing the time and method of delivery to suit their

lifestyle.

According to the 2018 IPC survey, 29% of Asian

customers used product delivery to the workplace,

while three out of 10 consumers in Asia deem that

delivery in the evening or weekend is very important to

them5.

O�ine Pick-Up with Control On Delivery TermsO�er customers options to choose their pick-up time

and location to help improve their delivery experience.

Online retailers with physical stores can set up “Click &

Collect” to o�er customers the option to collect

purchases from a retail outlet. Alternatively, it is also

very common in Asia, especially in Taiwan, Hong Kong,

and Japan to provide collection from convenient stores

or specific stations.

The return process can also be made omnichannel

where customers can return products at the retail

stores or ask for pick-up at home. For brands that are

stock-level sensitive, the checkout page could display

an availability calendar that is connected to stock level

and delivery capabilities.

29% Asian consumers want delivery to workplace

Three out of 10 consumers

want delivery in the evening or weekend

SETUP A WINNING ECOMMERCE SITE

NOW

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With the APAC eCommerce market growing at fast rates and with a projected trillion-dollar economy at stake, now’s the best time for brands to lead transformational changes. Here are the key areas where retail brands can explore, implement, and enhance their eCommerce sites:

Get platforms or software

that support mobile-

readiness and foster a

smooth customer experience.

O�er enhanced search

functionality by keyword and

image as well as provide

personalised product

suggestions.

Improve conversion rates,

SEO ranking and content by

incorporating user generated

content and buyer reviews

across your site.

O�er payment options based

on individual country’s

behaviour to avoid exits and

lost sales during checkout

Give customers the flexibility

to choose pick-up or delivery

times in store, in case other

options don't work for them.

Use technology to deliver a

digital experience to your

bricks-and-mortar stores and

merge the o�ine and online

experience.

About MONI

About Magento Commerce

MONI is an award-winning, digital

brand and commerce experience

agency, providing digital consultancy

and production services for brands in

Asia since 2006.

Magento, an Adobe company, is a

global leader in cloud commerce

innovation. Magento Commerce

boasts a strong portfolio of

cloud-based omnichannel solutions,

integrating digital and physical

shopping experiences and powering

$155 billion in gross merchandise.

www.monigroup.com

info@monigroup.com

+852 3188 3660

HONG KONG • SINGAPORE • VIETNAM • TAIWAN

KEY TAKEAWAYS

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