Ecommerce has finally come of age in South Africa. One of the few sectors to find a silver lining in the Covid-19 cloud, our research demonstrates how the pandemic accelerated online shopping in a number of different ways.
Ecommerce Matures but e-tailers Leave R12bn on the Table
A staggering 96% of our respondents said they would increase their online spend if the companies they were buying from improved the shopping experience. While a third would spend between 25% and 50% more than they currently are, 23% would spend up to three quarters more than they’re presently doing and 11% over 75% more. Extrapolating these numbers on South Africa’s most recently reported online spend of R30bn suggests that if online stores were to fix key issues they’d potentially generate an additional R11.95bn in revenue.
Improved experiences will lead to more online spend:
The most memorable part of the online shopping experience:
Mind the Gap Between the Moments of Truth
All transactions have moments of truth. These are points in the journey where the investment the customer has made - be it in time, energy or money - comes to fruition. And they can enhance or undermine the relationship consumers have with brands.
Our respondents were unanimous in defining their moments of truth: the stage at which they part with cash and the moment the product or service is delivered and / or experienced.
Winning Friends and Influencing People
Perhaps more significant than the environment through which sales are conducted is how brands can attract customers in the first place.
Over half of our respondents (55%) based their purchase decisions on social media posts with 54% looking at reviews on the brand’s website. Third party review sites like HelloPeter are used by a further 35%.
The significance of reviews: