The online marketplace has changed dramatically since Covid, and big international players entering the market and technological advancements like AI are further changing the game. But despite these changes, it is still customer service that is the biggest contributor to an online retailer's success.

The 2024 World Wide Worx Online Retail Report, sponsored by Peach Payments, Mastercard and AskAfrica, found that almost three-quarters of respondents (73.9%) cited customer service as the most critical factor in the success of their online retail activities.

Customer service-related issues such as managing customer queries, complaints and refunds also ranked among the business processes respondents found most challenging.

Industry Leader Insights

Good Service is Customer-Centred

Ryan Falkenberg, CEO and co-founder of CLEVVA, says good customer service is made up of three key elements:

  • a customer-centred approach
  • adaptive and hyper-personalised processes, and
  • accessibility.

Good customer service means putting the customer at the centre of the conversation. It means taking the time to fully understand their needs and context, before diving into solutions mode. You want to do this efficiently and effectively, with a multi-channel approach that allows customers to reach you when required.

Nadine Martin, Head of Business Operations for Peach Payments, adds that answering the individual's needs, rather than responding with generic solutions, is central to delivering excellent customer service.

Personalisation isn't always easy when you have thousands of customers, but each one needs to feel like you are invested in their success. The old adage that business never sleeps is even more relevant in payments which operate in an always-on environment. That's why our move to 24 / 7 support is one more way we demonstrate our commitment to our customers' success.

Technology Is a Tool, but Humanity Rules

Technology like CRM and AI can help to retain information and make it more available across teams, but it should not replace human interaction, says Warren Hawkins, MD of Euphoria Telecom.

Rather than using technology to keep customers at arm's length, we should leverage it to forge closer connections. Technology is important for retaining information and making it available across teams, but agents need to be using it to build connections and relationships.

Falkenberg sums it up by saying Technology simply makes it quicker and easier to get things resolved. It does not replace the need for connecting, which people do best.

Communicate, Educate

In an industry like insurance it's important to communicate clearly and regularly, says Charlotte Koep, CEO of Root Platform.

Insurance is a complicated agreement being entered into. Most consumers don't — and can't be expected to — understand what the terms and conditions mean. Clarity and guidance are key in communicating in a way that supports a customer service initiative.

Hawkins says proactive communication strategies are central to improving customer retention.

Businesses need to anticipate and address potential issues before or just as they arise. Customers don't want to be the ones always following up for solutions. The more your team can be on the front foot when solving issues, the more time your customers have to run their businesses.

Make Paying Easy

The Online Retail Report indicates that 11.9% of customers abandon their cart when there aren't enough payment methods available. It seems like a no-brainer, but offering multiple payment solutions is one of the best ways to keep online customers coming back.

Martin says with more e-commerce merchants coming online, there has been an increasing need for a range of payment solutions.

We have had to add non-traditional e-commerce offerings. For example, we have had to find partners that allow payment by voucher, credit and buy-now-pay-later, so that consumers have flexibility when paying for their online purchases.

Koep agrees that even in insurance, one of the most effective ways to improve retention is by offering customers additional payment options, including flexible payment terms.

If a customer doesn't have sufficient funds in their bank account, they should have the flexibility to use an alternative payment method. 

All four agree that technology will continue to reshape the marketplace, but the basic principles of customer service remain the foundation of success. Done right, businesses can attract new clients, and build lasting relationships that will see them hitting "check out" time and time again.

For more information, visit www.peachpayments.com. You can also follow Peach Payments on Facebook, LinkedIn, X, Instagram, or on TikTok. 

*Image courtesy of contributor