Customer Retention with
Tradebyte Software GmbH and zenloop
The Tradebyte Software GmbH operates a modern ecosystem for digital commerce and offers solutions for electronic data exchange among brands, retailers and marketplaces. Tradebyte offers a consistent exchange of data and ensures a fully automatic and synchronous data flow. With Tradebyte and zenloop, online shops can directly access shop feedback to measure customer satisfaction at every touchpoint by transferring NPS® data to other platforms.
These Companies Strengthen Customer Retention with Tradebyte and zenloop
Tradebyte has extensive expertise in various industries and technology solutions. The SaaS company is always up to date, develops new technologies, and knows which applications bring the best value to customers. We work together to share knowledge and discover the business drivers of tomorrow's digital commerce.
Optimized Customer Experience
Based on the collected findings of the NPS feedback, shops identify vulnerabilities in their customer journey. Is the shipment often delayed, are the goods damaged, are there problems with the payment process? The entire customer experience is analyzed and optimized using queries at the appropriate touchpoint. This also creates the opportunity for brands to realize competitive advantages - if they get to know their strengths and weaknesses.
Flexible Scalability in E-Commerce
In the digital age, e-commerce companies often have to deal with several service providers and agencies in the value chain. The Tradebyte Ecosystem controls and accompanies all processes, from the manufacturer to the retailer. Thus, Tradebyte can network any online shop with zenloop, which enables the analysis of feedback at every customer touchpoint in the shop.
Other Technology Partners
Tradebyte Software GmbH and zenloop: Transforming the Retail Industry and Boosting Customer Retention to Generate High Revenues on Online Marketplaces
"Trade is transformation", especially in the digital age this proverb applies more than ever before. Digitization is an important driver for the retail trade. It creates numerous new opportunities yet at the same time poses major challenges - a tension between growth and market concentration. Therefore, customer retention is particularly important today. 98 percent of Internet users shop online and the market often focuses on big players. Nevertheless, when smaller and medium-sized online shops offer a great product with a unique customer experience, customers build trust and repurchase rates rise.
Customer retention increases customer lifetime value and revenue. A pleasant side effect: A strong relationship with customers helps to build a first-class customer relationship. For these customers you are not " simply " another website or a business - customers leave their money at their favorite shops because they get value for it.
The Tradebyte Software GmbH meets the challenge of the digital transformation in e-commerce. With its customer data platform (CDP), Tradebyte offers an ecosystem for online trading that creates an electronic data flow and a seamless network between manufacturers, marketplaces, and traders.
Technological Change and E-Commerce: 4 Billion Euros in Annual Revenue Growth
In 1995, online trading started with the availability of the Internet to the general public. However, there were only a few users at that time, as data lines and Internet services were expensive and slow. After the dotcom bubble burst in March 2000, e-commerce faced a crisis. Numerous companies disappeared from the market and only a few survived the crisis. But the introduction of new high-speed technologies and steadily falling prices for data plans boosted online commerce once again – today around 80 percent of Germans aged 14 and over shop online.
The increasing relevance of e-commerce is also illustrated by a closer look at revenue figures: absolute annual growth amounts to four billion euros. The annual turnover in online retailing increased from 6.4 billion euros (net) at the end of the 1990s to 44.2 billion euros (net) in 2016. Fashion and electronic goods generate approximately half of the turnover.
Successful in E-Commerce
According to a study by the Cologne Retail Research Institute (IFH) together with DHL, customer retention and satisfaction are decisive for successful e-commerce. A positive customer experience, professional customer care, and competent advice are decisive characteristics that help a company stand out from its competitors. At the same time, this promotes customer-centricity across all areas of the company.
Data – Digital Gold
Customer data is another decisive component for successful e-commerce. If, for example, customer relationship management (CRM)- or ticketing systems are enriched with customer satisfaction data, this information can be combined to create customer segments and personalized communication. This provides two advantages:
- individual purchase process stages and customer contact points in the customer journey are analyzed and potential for improvement identified
- customers are addressed in a targeted and personalized manner according to their needs
The integration of customer satisfaction data collected with zenloop, for example in helpdesk or CRM systems via Tradebyte Software GmbH, allows for an automated and individual approach to win back dissatisfied customers or strengthen customer retention. There are numerous ways in which personalized communication based on customer intelligence can be leveraged within the customer journey:
Offers A decisive factor for personalization and thus for a better customer experience is the precise understanding of the target groups. And this is where Tradebyte Software GmbH offers a decisive advantage: seamless networking of manufacturers, dealers, and marketplaces in the digital value chain. As a result, customer data is automatically stored centrally, supplemented, and constantly updated.
We explain measures and strategies for holistic customer experience management in our article "Customer Experience Management - holistic, comprehensive and sophisticated".
Central Data Management: Stronger Customer Retention with Big Data
According to a study by eBusiness-Lotse and the IFH Institut für Handelsforschung, the consistent measurement of customer retention and data management on customer satisfaction values also contribute to long-term success on the market. Yet, how is this data measured or collected? Which contact points in the customer journey are particularly prone to customer churn?
In order to clarify these questions, it makes sense to know the customer's expectations of the purchase process stages on the Internet in the first place. For this purpose, the respective contact points with the customer should first be examined more closely. The customer evaluates the following levels:
- first impression
- information search, purchase initiation, and purchase impulse
- purchase completion
- after the purchase
In stages one to three, there is a risk of purchase abandonment, also known as shopping cart abandonment.
What are Customer Touchpoints?
Customer touchpoints represent how a company engages with a customer, from the start to the end of the customer journey. For example, customers may discover a company online or in an ad, view ratings, visit the website, complete an order, or contact customer service - all of which are brand contact points.
Learn how to identify and optimize all customer contact points within the customer journey here.
Step 1: First Impression
As everyone knows - the first impression counts. The professional design of the website, appealing product presentations, and the presentation on mobile devices should be optimized. In addition, the size and quality of the product range are decisive. This is why special offers are often a useful instrument for winning new customers because they help online shops to outperform their competitors in the short term. Customers attach importance to the price-performance ratio and therefore often look for special offers. In the purchase process, they often browse the product range of an online shop for further bargains. Of course, user-friendliness also plays an important role here. If the website does not run as expected (e.g. due to broken links, too many pop-ups and advertisements, misleading content, etc.) visitors leave the website immediately.
Step 2: Information Search, Purchase Initiation, and Purchase Impulse
At this stage of the purchasing process, website design is also highly relevant. Here, the following questions have to be answered: Do the product descriptions match the offer? Are there product reviews and recommendations? If so, are these positive?
If all these questions can be answered with "Yes", nothing hinders the purchase. Another important point in this section is user-friendliness. In this context, personalized communication has a particularly positive effect. According to KMPG, 75 percent of Internet users would share their data if it provided them with an individual offer that meets their needs and expectations. Also in stage 2, the product range is again an essential element of the customer experience. Customers expect an additional product range and general product availability. If an article is no longer available, then the likelihood is high that the visitor exits the page and approaches other online shops. Furthermore, customers attach great importance to an extensive and customer-oriented service supply. If an item is sold out, the shop should be able to communicate, for example, the availability in local stores or the next possible delivery time.
Step 3: Purchase Completion
Online shoppers attach special emphasis to a well-structured shopping cart design and a smooth, fast, and user-friendly registration and payment process. According to figures from the Baymard Institute, the registration process and payment options are the main reasons for shopping basket cancellations. Therefore, it is important to offer extended payment methods or installment payments and to communicate the costs transparently. As a result, the rate of shopping basket abandonments decreases enormously.
In addition, online shoppers at this stage build trust through trademarks and certificates or free deliveries from a certain minimum order value. If these are missing, the customer is more likely to cancel the order.
Step 4: After the Purchase
Especially after the purchase, good customer service and a smooth delivery focused on the customer, is indispensable. At this point, a customer decides whether to place another order in the online shop or not. This is why information on delivery times, completion, and condition of the goods is essential. If anything goes wrong, service staff should always be available and provide qualified advice and assistance. Subsequently, it makes sense to integrate existing customers into a newsletter cycle and to send regular updates on special offers. This keeps customers informed and reminded of the shop, generating traffic for the site and triggering new purchases. In addition, retargeting can be activated via social media or display formats in order to direct existing customers to the online shop.
Measuring the Success Factors in E-Commerce
The four steps within the customer journey reveal overlapping components. As a result, there are seven success factors for e-commerce:
- website design
- product range
- price-performance ratio
- payment methods
- shipping and delivery
By integrating the NPS® at relevant touchpoints, the entire customer journey can be mapped providing insights into customer satisfaction and each of the success factors. Additional information on "Touchpoint Analysis: How to Improve Customer Contact" based on the five customer moments of truth can be found here.
Customer satisfaction in terms of website design, user-friendliness, and assortment can be measured directly on the website as a pop-up or overlay or in a mobile app. For the e-mail channel, surveys on price-performance ratio, payment methods, and the entire experience through to ordering are suitable. In addition, we recommend the e-mail channel especially for the touchpoint "shipping and delivery" after successful order completion. Satisfaction with customer service may also be measured via e-mail after each interaction with a customer. In addition, the reasons for a shopping cart abandonment among existing customers may also be investigated via e-mail feedback.
Thanks to the Tradebyte Software GmbH solution, customer satisfaction data can be integrated into any other software and centrally stored and enriched. If you would like to learn more about measuring customer retention with the Net Promoter System®, this article provides all relevant information around this topic.
What is the Net Promoter System?
The Net Promoter System and the corresponding score are a management tool used to measure the intensity of customer retention in a company. It serves as an alternative to traditional customer satisfaction research and is an indicator of revenue growth (linear correlation). Based on two questions, customer satisfaction is determined at a specific touchpoint
- calculate satisfaction value: "How likely is it that they will _[recommend the delivery; our company, the product range; the payment process; etc.]_ to a friend or colleague?
The answer is given on a scale between 0 and 10. Very satisfied customers choose a score of 9 or 10 (promoters), while neutral customers click 7 or 8 (passive). Customers who choose a value between 0 and 6 (detractors) will most likely churn if no customer retention measures are initiated.
- investigate the reason for the score: "Please tell us why you chose a [Score]."
The Net Promoter Score calculates an index between -100 and 100, which measures the customer's willingness to recommend a company's products or services to third parties. It serves as a proxy for measuring customer satisfaction at specific touchpoints between the customer and the company.
Thanks to its concise and straightforward survey format, higher quantities of data are collected, which allows an accurate representation of satisfaction at each customer touchpoint in the customer journey.
With zenloop, it is very convenient to automatically measure customer retention and map the customer journey in order to optimize the customer experience. Due to the technical integration with Tradebyte Software GmbH, this knowledge and data can be transferred to any other software or database. As a result, companies gain a consistent and holistic view of each customer across all business units. As such, the successful online commerce of the future depends on innovative technology solutions that connect different SaaS providers, as for example the multi-channel-capable digital ecosystem of Tradebyte Software GmbH.