E-Commerce Customer Service: The 2024 Success Plan

Cliched it may sound but delivering stellar e-commerce customer service is the key to differentiating your business in a crowded and competitive marketplace. Gary Vaynerchuk perfectly articulates this when he says, “In e-commerce, your customer service is your brand. It’s what sets you apart from the competition.”   

It’s common knowledge that the modern customer expects immediacy, personalization, and flawless support experiences. Everything from necessities to luxuries can be delivered to your home with just a few clicks thanks to the ease of online shopping. Now more than ever, customer service for e-commerce businesses can bridge the gap between one-time transactions and continued business with a client.   

Customer service is the number one factor that decides if a customer will continue buying from you or switch to a rival. In the U.S, 60%% of customers quit doing business with a company they like if it frequently underdelivers customer service. Putting e-commerce customer service on the back burner can be a costly mistake for large companies competing in a crowded marketplace.   

In this blog, we will talk about everything you need to know about e-commerce customer support in 2024, including its key components, benefits, deployment, and optimization tactics.  

What is e-commerce customer service? 

E-commerce customer service is the process of assisting and supporting customers throughout their online shopping journey on shopping platforms and other channels. Customer support to online shoppers includes answering queries and providing assistance around: 

• Product information like specifications or availability 
• Order management including tracking and cancellations 
• Refunds and exchanges 
• Payment methods 
• Security concerns 
• Account management, and so on. 

The goal of customer care for e-commerce businesses is not just to improve customer satisfaction but to cut through the competition and convert one-time buyers into repeat customers. It plays a vital role in extending your customer lifetime value (CLV) by complementing your sales, marketing and strategic business initiatives.  

Another point worth noting is that e-commerce customer support extends well beyond the point of sale, nurturing customers through after-sales, loyalty and advocacy stages of the customer journey. Done effectively, online shopping support can transform the entire customer experience, winning over loyal customers in a crowded marketplace.  

Key components of e-commerce customer service 

Accessibility is an important aspect of e-commerce customer support as customers flit from online to offline, social to website to complete their shopping journey. To make the journey as smooth and seamless as possible, you will need to provide omnichannel customer service. 

Support availability across popular customer support channels, digital or otherwise, ensures customers get help whenever they need it. The key components of e-commerce customer service typically are: 

1. Live chat: Best for real-time and quick assistance to customers for queries or issues. Its biggest advantages are speed, co-browsing, and video chat. 
2. Email: Best for providing support during non-business hours. E-mail support is also handy for troubleshooting technical problems with visual aids and attachments. 
3. Social media: Best for catering to tech-savvy customers who prefer social media channels for product research and shopping. Social customer care is also important for monitoring brand sentiment and responding quickly to escalations. 
4. Self-service options: Best for customers who prefer to find their own solutions, FAQs, knowledge bases, chatbots, and customer communities can empower them with quick resolutions.  
5. Phone: Best for customers who need direct, personal and urgent assistance on complex matters that need guidance, such as troubleshooting for technical glitches in software. 
6. Review platforms: Best for addressing concerns of disgruntled and dissatisfied customers. Providing an apology and resolution method for poor experiences can build trust in your brand.  
7. SMS: Best for quick and time-sensitive communication such as order confirmation, tracking details or reminders.  

A combination of such support components will give customers flexibility, accessibility and convenience to choose their preferred support channel at every touchpoint. As an e-commerce business, it becomes your responsibility to ensure each support channel complements the others, ensuring customers get help whenever and wherever they need it, with minimal friction. It’s also important to match customer expectations regarding response time on these channels so customer frustration doesn’t set in.  

Also read: 8 Expert Tips to Improve Customer Response Times  

E-commerce customer service vs. retail customer service  

Retail customer service is the process of assisting customers in physical stores or during in-person shopping experiences typically through direct interactions with staff and phone calls. Good retail customer service aims to build relationships, enhance satisfaction, and encourage repeat business. In contrast, e-commerce support caters to online shoppers, mostly providing support through digital channels like website/app, live chat, email, and social media. Here are the finer differences between the two:  

4 big benefits of e-commerce customer service

The world of e-commerce is growing rapidly with revenue estimated to reach a projected market volume of $6,478 billion by 2029. As the market balloons and competition intensifies, customer expectations will extend beyond present challenges to give rise to new ones. More transaction volume will lead to more support requests. Is it worth the while to invest in building your e-commerce customer support amidst such a flux? Yes, it does. Here are four reasons why: 

It enhances customer satisfaction 

With timely and responsive support, you can provide instant responses to customers improving their satisfaction levels (CSAT). According to Forrester, 66% of consumers believe businesses that value their time get the most important thing right about customer service. Using instant messaging tools like social media and live chat, businesses can connect with customers quickly to solve their problems as they arise. Once a ticket is resolved, 86% of customers who use live chat support say they feel gratified. Additionally, if you excel at personalized customer service, you gratify 71% of customers who expect a high degree of personalization from brands they patronize.   

It boosts customer loyalty 

Customer retention is a topmost challenge for e-commerce brands worldwide, owing to cut-throat competition and razor-thin margins in the retail industry. That’s where efficient customer support plays a crucial role.  

Besides improving in-the-moment customer satisfaction, it also fosters long-term customer loyalty that keeps the competition at bay. How does this happen? E-commerce customer service provides a unique opportunity to build strong customer relationships via direct messaging and online communities. Using helpful content, social media engagement, user-generated content, and other community-building activities, brands can foster a sense of belonging and loyalty among customers. 

It bolsters brand reputation 

Customers who are satisfied with support interactions with a brand are 97% more likely to recommend the brand to family and friends. Positive word-of-mouth recommendations improve your reputation as a customer-centric brand. As the voice of the customer grows stronger and louder, you start attracting better leads, talent, influencers, and partners, opening up growth avenues for yourself.  

It multiplies revenue growth and opportunities 

E-commerce customer service, when done right, can yield numerous financial benefits. Firstly, it can directly contribute to higher sales through repeat and new customers. Converting old customers is 25% cheaper than acquiring new ones. 

In addition, efficient customer care through self-service tools and digital channels can reduce your call volume and support costs. For instance, conversational AI statistics claim that self-service solutions like chatbots are 30% cheaper than human intervention.  

Eager to learn more? Read how conversational AI benefits retail businesses. 

How to deploy customer support for e-commerce [+ best practices]

Now that you understand the gravity of implementing a robust customer support solution for your e-commerce brand, Here’s a step-by-step guide on how to do the implementation effectively: 

Step 1: Define your retail customer service strategy 

A well-defined customer service strategy will function as the fulcrum of the support you provide. An e-commerce customer service strategy must align with larger organizational goals and customer preferences. The support strategy will dictate all the moving parts of the customer support function, from the kind of training given to agents to the support tools you implement.  

For instance, if you are a luxury goods retailer, your customer support strategy should emphasize high-quality interactions and personalization. You could implement high-touch customer support, where every interaction is led by personal greetings, references to historical conversations and targeted recommendations based on specific preferences of your customer persona.   

Best Practices: 

• Understand your audience and industry by building customer personas and competitive analysis. This will allow you to craft a competitive and effective support strategy.  
• Connect with top leadership and stakeholders to double down on company goals. Use this framework to identify your customer service goals, channels, tools, and policies. 

Step 2: Choose the right support channels 

Your channel selection makes a bigger difference to customer experience than you’d imagine. It directly influences how quickly customer needs are met and how satisfied they are. For instance, offering voice-only support will likely limit your support experience as the channel is prone to long wait times. Contrarily, offering chatbot-led support is more satisfactory as chatbot responses are instantaneous.   

Offering multiple channels — such as live chat, email, social media, and phone support — will allow customers to choose the method that suits them best, enhancing their overall satisfaction.   

This doesn’t mean you spread yourself thin and cater to all channels out there. Each channel has its strengths so pick the ones that your customers prefer. For example, live chat provides instant responses, while email allows for detailed, thoughtful communication. Tech-savvy shoppers may prefer quick interactions through instant messaging, while others might appreciate the personal touch of phone support.  

Best Practices: 

• Analyze customer interactions to understand your customers’ channel preferences. This information will help you allocate resources in the right places. 
• Research shows that 98% of customers want to connect with businesses through mobile interfaces. Ensure your e-commerce customer service is optimized for mobile.  

Did you know?  

73% of customers aged 18-49 find live chat extremely convenient to talk with businesses. If you are a business that focuses on this demographic, investing in live chat software will help you connect with customers better.   

Meet your customers where they are with Sprinklr’s live chat support software.  

REQUEST A DEMO

Step 3: Implement effective self-service tools

Almost 59% of customers prefer finding solutions on their own for simple problems. Having a robust customer self-service system as part of your e-commerce support strategy would not just make customers happy, but also lead to higher agent productivity and cost savings. Your customer self-service arsenal should include: 

• Knowledge bases and help portals 
• Video tutorials and guides 
• User forums and customer communities  
• Web applications 
• Customer service chatbots and voice bots  

Best Practices: 

• Provide customers with video guides that are optimized for mobile. 
• Foster active online customer communities within your e-commerce ecosystem to allow customers to find solutions from peers.  

Step 4: Train your support team well 

There’s little doubt that digital customer support is the way forward. It’s quick, cheap, and convenient. However, human-led support is still relevant, especially in e-commerce. Over half of all customers with urgent issues prefer a phone conversation to online chats. In technical troubleshooting, escalations, and crises, customer satisfaction often boils down to how well your customer support reps handle the situation.  

That’s why training your customer service agents in brand ethos and customer service best practices should be high on the priority list of any e-commerce brand. Your training program should be designed to equip agents with product information as well as customer service skills they will require in daily operations.   

Best Practices: 

• Create a detailed customer service training program that spans product knowledge, communication skills, and conflict resolution.  
• In soft skills training, prioritize customer empathy, active listening, and problem-solving. Coach agents in tricky customer service scenarios around refunds, exchanges, complaints, and conflicts. 
• Leverage technology to keep up with changing customer service needs, industry trends and customer expectations. 
• Use AI-powered quality management software to measure progress, identify skill gaps, and design learning pathways tailored to each agent's unique needs. 

Step 5: Measure customer service success

The e-commerce market is dynamic, with new service experiments and tools entering the domain at startling frequency. To stay competitive and viable, you need to track how your e-commerce customer service stacks up against competitors and the industry.   

What’s more, customer service analytics identify persistent customer pain points and triggers that can escape the naked eye. It also surfaces improvisation opportunities and skills gaps in your workforce. Last but not least, it shows the overall sentiment around your customer service and brand. 
 
 Best Practices: 

• Use customer feedback gathered via post-interaction customer surveys and follow-ups to up your service. Analyze the underlying customer sentiment and satisfaction level to capture improvement opportunities. 
• Benchmark your customer care performance on specific channels you serve. For example, benchmarks for call center and social will be different so it makes sense to track them separately. Likewise, there are separate customer support metrics for different channels. On social media, response time is crucial but on live chat, first response time is more important. 

Success stories: 3 examples of excellent customer service in e-commerce

Brands that adopt a strategic e-commerce customer service plan find its benefits in alleviating multiple pain points. Here are three brands that have got it right. 

1: How H&M leverages AI chatbots for personalized shopping recommendations 

H&M, a brand known for its affordable, fashionable, and sustainable clothing, realized that it had to capitalize on digital capabilities if it wanted to boost its sales in the current market. A traditional retail store just didn’t cut it. The fashion retailer turned to artificial intelligence to improve its customers’ online shopping experience.

H&M deployed a conversational chatbot on its website and app to understand its customers’ styling needs through a nifty quiz. The chatbot gathers information about the customers’ style and then links them to relevant products on its website.  

Conversational AI in retail customer service is known to improve customer engagement, providing personalized shopping guidance and recommendations. This approach helped the retailer match the modern consumer’s demand for personalization and convenience Today, up to 40% of U.S. teenagers use H&M’s bot for their shopping and support needs. 

Source 

2. How Nike maintained service levels via an app-based approach 

Much like many retailers, Nike had to pivot from a predominantly physical retail model to an e-commerce model. The shoemaker struggled with matching the high service standards set by its stores and staff. To maintain service levels and glean customer feedback, Nike created four apps (SNKRS, the NIKE Mobile App, NTC and NRC).  

From these apps, Nike was able to glean data-driven insights from 500 million users to improve its e-commerce customer care. It also succeeded in growing its digital business threefold and its direct revenue by 18%. 

Source 

3: How boAt leverages customized interactions to boost conversions  

Indian wearable tech company boAt had multiple struggles with its e-commerce business, mostly around growing customer support demand. As its customer base grew, its contact center traffic grew, and agents struggled with managing notifications and customer inquiries. The company teamed up with Sprinklr for conversational commerce assistance.  

It integrated messaging platform WhatsApp into its real-time customer engagement process. As a result, the company was able to initiate 500K WhatsApp conversations to increase conversions and reduced 185,000 abandoned carts to generate $18,000. Read the full story here. 

Impressed by what boAt did? You can do the same for your e-commerce brand with Sprinklr Service’s suite of products. Take a demo of our offerings to see the change you’ll want to keep making.