Fashion is a dynamic industry that never stands still. To remain profitable and successful, retailers and brands need to be at the forefront as trends change. Successful brands have an emotional connection to their audiences. This builds loyalty and brand appeal, which represents the customer’s values. Delivering different
Fashion is a business that never stands still. Brands and retailers must stay on top of the latest trends to be successful and profitable.
To be successful, a brand must have an emotional connection to audiences in order to build loyalty. This leads to brand appeal that represents the values of a customer. Every fashion and apparel retailer strives to be competitive and strategic by offering differentiated and personalized experiences to every shopper. As a result of the COVID-19 pandemic, brick-and-mortar stores have been closed (some will never reopen). The fashion industry has been affected by this. Previously, the only way to gauge the quality of a brand was to visit the store and feel the products. It was no longer possible.
A change was taking place during the pandemic. The pandemic has increased the demand for e-commerce purchases, especially in fashion. This has led to innovation, efficiency, and new ways of scaling up businesses. This change will likely be permanent, and it will create new opportunities for companies to develop operating models and differentiated offerings that are more personalized to each customer. It is important to embrace e-commerce, especially at a time when consumers’ expectations are higher than they have ever been. The idea that an online shop is just another channel doesn’t work anymore. There are now more than 100,000,000 smart speakers and many virtual assistants in homes around the world. To remain successful and relevant, brands and retailers must provide solutions that exploit the customer journey. The consumer now expects a complete shopping experience. Consumers want to be able to interact with brands and influence them. Retailers have several new opportunities to interact with their customers, but to make these methods successful; they need new technology. McKinsey’s recent report, ‘The State of Fashion 2021,’ states that “Consumer behavior has undoubtedly changed over the last year as people have sheltered themselves from the virus at home, restricted travel and closed stores around the globe.” As digital consumption grows and continues to dominate in 2021, businesses must create more social and engaging experiences to encourage customers to connect. We expect executive teams to focus more on the value that digital channels can add to the bottom line due to tight budgets, productivity, and efficiency. We know that in a mobile-first world, those who can excel or maintain these aspects using the appropriate technology will be the ones to succeed.
Customer satisfaction
1. The changing fashion consumer
In the context of the pandemic, where it was not possible to visit stores, the fashion consumer has changed their behavior. This is especially true for millennials who prefer shopping online over in-person. Fashion brands and retailers had to adapt quickly to the changing tastes of their customers. E-commerce, which is popular among this group of people who are used to technology, is the preferred way to purchase. It allows customers to personalize their shopping experience.
2) New shopping methods
Millennials and Gen Z are more interested in how they can wear items they cannot afford. They have embraced the concept of renting and borrowing, as opposed to buying. These large fashion houses have a rapidly growing rental service for these groups who could previously only dream about wearing luxury items. Brands can also reach audiences they never thought of before. The growth of e-commerce is a major factor in the emergence of new retailers such as ThredUp and Vestiaire Collective. Luxury sites like The RealReal have also seen a significant increase. Fashion consumers are increasingly looking beyond labels to other factors, such as the environment and human rights. The conscious consumer understands the human and environmental costs of producing a particular product. Streetwear, athleisure, and ethnicity, as well as nostalgia and ethnicity, have also been rising themes. These all gained prominence during the pandemic, when wearing comfortable clothing at home was essential. To keep your customers coming back, you need to stay ahead of the curve in terms of new product offerings. It is not enough for customers to be satisfied to have the right products on the market. The entire ‘customer journey’ must be efficient and seamless. Customer satisfaction and sales are easily lost without a consistent, compelling experience at every touchpoint.
3) Effect of “returns policy” on customer satisfaction
The customer is more likely to purchase again if they have a positive experience. If the customer has a positive experience on the ecommerce site, then they will also be more likely to share their good experiences with others. In the online world, customer satisfaction is crucial because it builds confidence in customers. This is essential since online transactions require trust. When a customer feels satisfied, they are less likely to consider switching to another online provider. Online fashion businesses have a return rate estimated at 50 percent. It is up to brands and retailers, therefore, to minimize returns. They should look for measures that will prevent or reduce returns during the pre-purchase phase, purchase phase, and post-purchase phase. UPS’s 2019 UPS survey found that 73 percent of consumers said their returns experience affected whether they would buy from a retailer again. And 68 percent said the experience impacted their perception of the retailer. A number of factors can cause returns, but the most common is a comparison between expectations (when shopping online) versus reality (when you receive the product). This expectation of a customer’s satisfaction with a product depends largely on whether it is the right article and fits correctly. Journal of Business Economics conducted a study on Fashion Customer Satisfaction. The results showed that product returns were primarily due to the fact that the product did not fit (62%), consumers didn’t like the product (39%), the product arrived damaged or defective (30%), and the product wasn’t as described (30%). The services associated with making purchases and the way deliveries are completed are also important factors. How a brand or retailer handles returns can impact overall satisfaction.
Research insights revealed that improving the way products are presented is a great option to reduce returns. The customer service experience begins by making sure that customers are aware of the brand’s return policy and ends with living up to their expectations. Cart abandonment is no different. According to Baymard Institute, 55-75% of shopping carts that are initiated will be abandoned. A lack of real-time options and a smooth, streamlined process has led to a large number of sales being left unfinished. The researchers conclude that the more channels or touchpoints there are in the e-commerce buying journey, the harder it is to get a great experience. Fashion brands must smoothen out the purchasing journey and make it a seamless process that provides a positive customer experience at every touchpoint.
4) A unified omnichannel journey
Companies can provide a consistent, excellent customer experience by establishing an omnichannel strategy and placing the customer at the center. Cohesion between all touchpoints is key to building trust and loyalty for the brand. Focusing on the value of the customer journey allows for additional benefits and offers to be offered, regardless of which channel is used. Companies face challenges when creating omnichannel experiences for customers, such as data silos, where departments do not “share” their data. They also need to improve personalization across all channels. It could mean that separate shopping carts are created, which results in an unbalanced customer experience. This can lead to dissatisfaction and abandonment. Fashion retailers need to analyze the value and nature of their products and create personalized offers that improve customer satisfaction. A simplified payment system, as well as a reliable delivery service, are also helpful.
5) Technology can improve customer satisfaction
One of the biggest challenges for the new ecommerce consumer is to ensure that retailers and brands are able to present accurate and detailed information about products, including size, color, style, and other special features like origins and materials construction. To solve this problem, companies are turning to the latest technologies:
a. Accuracy of product information
Personalization and relevancy continue to grow in the ecommerce industry as more customers choose retailers who share their values. Fashion e-commerce retailers use Product Information Management systems to help solve the new challenge of putting the customer at the center of their marketing strategy and providing detailed product data. These systems deliver a consistent customer experience and product view across all touchpoints. Sales Layer and Quable, for example, are leading the way in becoming the central hub of all product-related information. This can eliminate silos while providing a consistent experience across the entire omnichannel ecosystem. These systems offer a simple and effective browsing filtering system that can help the online shop interface. Fashion consumers tend to want to find products quickly. PIM offers accurate information on the assortment, which allows for products to be grouped according to their features. The customer can browse through similar products. Fashion brands can also use PIM systems to quickly and easily manage product information, allowing them to get products to market soon. They have all the necessary background information that helps customers to browse and make quick buying decisions. They connect with ecommerce sites and marketplaces to allow for seamless data transfers that will help promote products at the point of sale.
b] Sizing tools
The use of sizing apps by fashion companies is a great way to increase customer satisfaction and create engagement. Customers can enter their measurements to finalize online purchases. The more a customer trusts the result, the more satisfied they are with the brand. Virtusize is a software program that helps brands such as Nudie Jeans to measure their customers.
c) Flexible payment systems
Now, there are more payment options available. Accepting different payment methods is beneficial because not all customers have the same preferences. If you offer flexibility to your customers, they will enjoy their experience and be more likely to return. The use of smartphones has led to an increase in contactless payments. Apple Pay, Google Wallet, and Samsung Pay are other mobile payment options that make purchasing easier and more enjoyable. Fashion companies can access customer data, including spending habits. This information is useful for promoting relevant products in sales windows. ‘Buy Now, Pay Later’ is also a growing trend, especially among Millennials. The younger generation, who are burdened with debt, is happy to defer payments. It is also appealing to check if they love the product first before paying upfront.
d) Hyper-personalisation
Amazon’s artificial intelligence (AI) product recommendation system is probably the first example of hyper-personalization that comes to mind for most people. It uses AI and real-time data from third parties to enrich brand messaging and provide context-sensitive, relevant information. It also makes further recommendations based on past purchases or search histories. However, not all hyper-personalization structures are so dependent on technology. Stitch Fix, for example, asks users about their personal style preferences. It then matches them with a stylist who makes hand-picked suggestions tailored to each user. Customers get expert recommendations for clothing, shoes, and accessories from human stylists. These items should fit their style and be perfectly matched.
e) Fulfillment
In an ecommerce environment, logistics and fulfillment services can improve customer satisfaction and loyalty. Customers expect the same level of personalization during order fulfillment. When the item arrives at the customer’s doorstep, they may have seen or felt it for the first. Clothing retailers must provide more to their customers than the product before and after delivery. By providing memorable services, it is possible to build trust and loyalty for the brand.
Participation
Customers who quarantine at home bought clothing from e-commerce stores despite the lack of fitting rooms. Platforms like BigCommerce or Shopify offer independent fashion brands all the tools needed to create digital storefronts. This has resulted in a significant increase in competition among these ecommerce fashion stores. Not only are they competing over price, but also on the style of the products and how it makes the consumer feel. Many brands struggle to stand out amongst their competitors. The problem is even worse for smaller brands that design themselves. They must have a strong brand identity and relationship with customers. Brands must establish an emotional connection with their customers. When your customers wear your clothing, they will feel something like comfort or confidence. Customer participation is key to developing product offerings and improving satisfaction and engagement.
The rise of direct-to-consumer brands
Due to the high level of competition and lack of intimate contact with brands, it’s up to these companies, through their online store, to give their products a unique personality. Many brands have adopted a direct-to-consumer (D2C) or direct-to-consumer approach in order to offer specialized and personalized offerings. D2C brands create emotional connections with their clients by designing products with them in mind. D2C fashion brands encourage their customers’ ideas, suggestions, and content for design to improve the customer experience. Customers can use social media to spread the news. Co-creation is a key element in the fashion industry. New technologies and social media are essential. Co-creation is a process that involves mass co-production, co-design of products and services, and personalized mass production. It results in a new way of thinking and a collective approach. Apparel retailers use new technologies, such as the Internet of Things (IoT), AI, and big data analytics, to better understand the behavior, wants, and needs of their customers. The customization of garments impacts the fashion industry. The industry is forced to niché itself by, for example, producing products that are individually tailored and providing higher value to customers. Instead of buying a brand-name product, customers can buy one that is tailored to them.
2) IoT influencing fashion
IoT has begun to penetrate the fashion industry. The sensors stitched in the fabric allow data interconnection to inform how the customer uses the clothing and what accessories to wear. These technologies have a growing number of apps to track activities and monitor health. This helps fashion designers to provide more value to the customer.
3) User-generated content
The content created by users can be used to increase brand engagement and reach. The use of user-generated content can range from videos to recommendations, and when integrated into social media sites, it can boost conversions.
4) Virtual fitting rooms using AR/VR applications
Fashion e-commerce retailers use Augmented Reality (AR) and Virtual Reality (VR) experiences to attract and retain customers. Visitors can use AR and VR to try on clothing without having to go to the store. This is a way to encourage them to purchase. Many e-commerce stores are using online apps powered by virtual reality to understand better how a product will look and fit. They would answer a few quick questions and provide some simple data; then, they’d be shown the common body shapes based on their input. After that, they will receive a recommendation. Some use AR apps to allow users to enjoy specialist augmented-reality content, including live streams from runway shows and catwalks. Others provide AR experiences that can be scanned using a smartphone camera. These immersive experiences have become a key part of the customer journey for e-commerce.
Engagement
Engaging consumers with a brand and building trust to drive positive sales are two of the biggest challenges in e-commerce. A website or catalog that lists products has the problem of not allowing feedback, ideas, and comments to be exchanged. Brands need to think beyond their development and quality to keep visitors. The key to engagement is how you can achieve it when many brands are competing.
Use of social media platforms
In today’s smartphone era, social media has become a necessity for many fashion brands and retailers in e-commerce. This is especially true among Millennials, Gen Z, and other audiences. Social media is not only a way to stay in touch but also enables businesses to market their products. Sites like Instagram are a great example of this. Sites like Instagram, YouTube, and Facebook, which have a more dynamic interface interface, are more appealing. It is easy to engage customers by using photos and videos. Social media platforms can engage customers with a simple ‘like.’ However, as compelling visualizations and stories appear, they become more powerful. Some can be used to check out themselves or as their search engine.
2) People love videos
People love watching videos. Placement of product videos on social media websites like Instagram or Facebook allows users to view products in an exciting location. This is a good way to let customers know about offers and new information. Influencers often use videos for short chats and to encourage viewers to share information about the types of products or designs they want. Videos are also a powerful tool for engagement, especially when it comes to designing new products and accessories. Being spontaneous and creating engaging content will allow customers to engage further with your brand, allowing them to trust you in the creation of a product that is specifically designed for them.
The influence of celebrities
Influencers have been used in fashion brand marketing for a long time to increase engagement. Influencers are important in showing how products or accessories can used excitingly via video streaming. The number of followers and target demographics they have at any given time determines their importance. Customers can get more information on products by tagging them. Users can engage with influencers in real time by sending direct messages, comments, or information requests. Influencers can also share comments in order to increase the reach of the product. Some are questioning their use, as some influencers are buying their followers. They are still considered an important part of the buyer’s journey during the discovery phase as well as the conversion process. Brands want to use their power and reach to give personality to their product.
4) AI Chatbots
Chatbots in ecommerce can provide the missing link between retailer and customer. They create a personalized approach for each user, increasing engagement while maintaining the convenience of shopping online. It can provide customers with exact solutions. When chatting with Tommy Hilfiger’s chatbot via Facebook, you can browse their collections or get help choosing an outfit, style, and accessories. It can be added to a cart that is ready to check out at any point.
5) V-commerce is on the rise
Virtual commerce (or commerce) is a term that has been coined as more and more engagements are engineered by virtual assistants, virtual fitting rooms, or virtual catwalks using AR/VR. Brands can provide a more personalized experience for their customers. This allows brands to engage with customers directly and offer customized products or services. They can also link them straight to the buying process or virtual stores. V-commerce will enable shoppers to purchase now from retailers without having to use other platforms. Fashion brands and retailers seem to be looking for new ways to tackle the challenges of engagement, satisfaction, and participation in what will likely be a difficult year for ecommerce fashion. Brands and retailers could find success by offering tailored products, services, and experiences.
