LWC blog post: The customer journey as a success factor in eCommerce

The customer journey as a success factor in eCommerce

Estimated reading time: 7 minutes
Why is the customer journey so important in eCommerce?

Online retail via web shops is booming in Germany. In B2C eCommerce alone, sales totalled almost 87 billion euros last year.

Young adults continue to lead the field of online shoppers, but older generations are also finding eCommerce increasingly appealing. However, the new way of shopping not only makes things easier for users, but also for companies.

To ensure that the customer's journey through the online shop, as well as the touchpoints before and after a purchase, are perceived positively, it is essential to consciously design the customer journey.

Companies should know their customers' requirements precisely in order to offer customised solutions. This enables online retailers to reduce the number of abandoned purchases and promote positive customer reviews, for example.

Knowing customer requirements is essential when shopping online

Customer experience in eCommerce

It is not uncommon for users to struggle with confusing homepages and seemingly endless loading times in online shops. Added to this are distorted forms of presentation, incorrect or outdated descriptions or unrealistic images.

Even after a purchase, annoyances are not uncommon. Who hasn't been annoyed by excessively long delivery times for a last-minute birthday present for their partner and also had to accept excessively high delivery costs? Perhaps you even cancelled the purchase process early because your credit card was refused?

Or did you decide in favour of Amazon for your last online purchase because your preferred online shop only has a very limited selection of payment methods and PayPal was not on file? How often have you entered your credit card details in your favourite online shop and been asked for the 16-digit credit card number again the next time you made a purchase?

Depending on the source, the average shopping basket abandonment rate is between just under 60% and 80%. The reasons for this are varied and range from excessively long waiting times and additional costs for packaging to mandatory registration with the webshop operator. Online customers want uncomplicated and transparent processes, want their data to be filled in automatically and also have a great need for security.

Germans' need for security in online shops

German consumers in particular still harbour reservations about online retail due to security issues. Online retailers should absolutely ensure PCI compliance in order to avoid exorbitantly high fines and the revocation of all licences and to avoid falling into the disfavour of consumers.

The focus on ensuring security requirements, but also clean processing in the backend of the web shop, means that many companies only optimise the internal processes in one area of their business. In doing so, however, they neglect the requirements and wishes of their customers. This often leads to the problems in the customer journey listed at the beginning.

The payment process in eCommerce as an example

Let's look at the payment process as a very decisive step in the customer journey as an example: many companies take a simplified and one-dimensional view of their online shop in order to derive payment strategies. In doing so, the specific requirements of different customer groups are often not taken into account, or only insufficiently. While traditional bank transfer is often the preferred payment method in B2B online retail, end customers in the B2C segment prefer a one-click checkout. In Germany, PayPal is most frequently used for this. Among our French neighbours, Carte Bancaire is particularly popular, while iDEAL is the favourite wallet of the Dutch.

Conclusion for the customer journey in eCommerce

But it's not just customers who are struggling through the eCommerce jungle. Online retailers also face major challenges. They cite supply bottlenecks as the most common difficulty, closely followed by competitive pressure and the negative effects of the coronavirus pandemic. And ultimately, this in turn affects the customer journey that they can offer their customers.

Let's summarise: In addition to a smooth technical flow of the web shop in front of customers, the customer journey must ensure fast responses to customer enquiries and uncomplicated, smooth shipping. This enables online retailers to ensure a high level of customer satisfaction and long-term customer loyalty.

We support the realisation of success factors in eCommerce

In order to harmonise the customer journey with the requirements of their customers, companies can make use of consulting services. As a management consultancy with a very customer-centred perspective, we at LEITWERK Consulting help online retailers to solve or reduce the above-mentioned problems so that online shopping leads to success for both sides.

Our consulting services are based on our three proven success factors:

  1. Customer journey development
  2. eCommerce strategy
  3. Continuous further development

1 | Developing the customer journey: understanding customer requirements correctly

In order to stand out from the competition, it is not only important to provide the payment methods that are in demand regionally, but also to have a coherent eCommerce strategy that involves customers.

To this end, we recommend conducting a customer journey analysis to understand customer behaviour patterns and motives and to develop a holistic and user-centric eCommerce strategy. This method originates from marketing and is used to identify all customer touchpoints, i.e. all points of contact of a (potential) customer on their journey from initial contact to purchase to receipt of a product. This makes it easier to understand customer behaviour and needs. Suitable solutions and measures are developed on the basis of the insights gained.

Customer touchpoint analysis must also follow a holistic approach. Customers usually come into contact with a product or service several times before they ultimately decide to make a purchase. Experiences from the last touchpoint used influence expectations at subsequent touchpoints.

The steps of the customer journey in the LEITWERK approach:

1. Schritt 05

Collect information from various sources

the steps of the customer journey
Holistic global eCommerce strategy with regional solutions

2 | Holistic global eCommerce strategy with regional solutions

A global approach that reflects the complexity of the company is crucial for a successful eCommerce strategy. The solution chosen should be as flexible as possible while still allowing plenty of room for manoeuvre for regional circumstances.

Globally active companies with numerous legal entities in particular should opt for a payment gateway, for example. This enables a complex setup with different regionally operating payment service providers (PSPs), which are responsible for providing the local payment methods (LPMs).

At the same time, the payment gateway creates transparency regarding incoming payments worldwide, identifies billing conflicts and enables standardised accounting processes, such as the uniform and complete reconciliation of all transactions via the various online channels.

Further development potential for your customer journey

  • What makes a good customer journey?

    What makes a good customer journey?

    • Visualisation of the customer journey (traceability and comprehensibility)
    • Complete and comprehensive mapping of all touchpoints with the company
    • Assignment of the touchpoints to the individual model phases
  • How can the customer journey be improved?

    How can the customer journey be improved?

    • Inspiring and user-friendly navigation through the product range
    • Perception of customer needs
    • Actively asking customers for feedback and implementing it accordingly
    • Advising and supporting customers during the customer journey
    • Approaching customers individually and offering customised solutions
Do you have questions on this topic or are you interested in one of our leadership development formats?
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LWC Consulting: Melanie Fruth
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Melanie Fruth
+49 89 189 235 96
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