Monday, January 19, 2009

Impact of Shipping on eLoyalty

ForeSee Results, a consulting firm which focuses on customer satisfaction for websites performed a survey of more than 9,000 shoppers during the Christmas holidays in 2008. Here are the results of their survey:
1. Avoiding shipping costs is the third most important response for why shoppers choose to buy in a store behind ability to receive the product immediately and being able to see or feel an item before purchase.
2. 18% shop in stores that have free shipping.
3. 33% said they bought from web sites instead of stores because the retailer offered fee shipping.
4. Consumers gave retailers who offered free shipping higher scores in every satisfaction category than those who did not offer it.
5. 60% of online customers said the availability of free shipping greatly influenced their choice to shop at one e-retailer.

The bottom line is that free shipping appears to have a direct impact on customer satisfaction, at least during the holiday season. The real test will be to determine if this was unique to the holiday season or will this customer response persist beyond the holidays. The second question to answer is whether this will ultimately led to eLoyalty.

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