Mastering the Post-Purchase ExperienceHow to compete in a “fast and free” world

April, 19 2018

LILA SNYDEREVP and President, Pitney Bowes Commerce Services

Consumers have raised the bar on

Pitney Bowes

E2E EXPERIENCE

SHIPPING

RETURNS

DOMESTIC

CROSS-BORDER

47%frustrated last

holiday with the

post-purchase

experience

Pitney Bowes

It’s a marketplace world.We’re just living in it.

WIDE ASSORTMENT + LOW PRICES + FAST/FREE SHIPPING + EASY RETURNS

Pitney Bowes

Mastering the post-purchase experience

1 Get inventory closer to the consumerHelps with fast and free

2 Pick the right carrier, every timeLeverage their strengths to your advantage

4 Make returns easy Or I won’t come back

5Don’t forget your international consumersSame expectations, even harder to deliver

3 Communicate – it’s all about the dataBecause waiting is the hardest part

Pitney Bowes

Get inventory closer to the consumerHelps with both fast and free

Pitney Bowes

When it comes to shipping: consumers just want ‘free’If they had to chose between ‘fast’ and ‘free’

82% 88% 69% 82% 85% 70% 51% 86% 60% 65% 82% 86%

AU CA CN FR DE HK IN JP MX SK UK US

Free shipping with alonger delivery time

Shipping at a cost with ashorter delivery time

75% globally

Pitney Bowes

The impact of getting closer

Delivery Time

1.2

days

Transportation Cost

15%

Pitney Bowes

Pick the right carrier, every timeUse their strengths

to your advantage

Are you set up for multi-carrier success?

of retailers use

carrier-provided,

single-carrier shipping

systems

85%of retailers that ship

60 to 1,999 shipments/mo

have used current parcel shipping

system for 4+ years

91%of parcels shipped 350+ miles

(sweet spot for USPS

rates and transit times)

39%

Source: Colography Shipping Study 2017Pitney Bowes

Pitney Bowes

Getting multi-carrier right requires…

….OR, finding a great partner who can

bring you all three

Technologythat is

seamless

Knowingcarrier

strengths, for your business

Clearbusiness

ruleson carrierselection

Pitney Bowes

Communicate:It’s all about the data!Because waiting

is the hardest part

Pitney Bowes

Post-Purchase, Pre-DeliveryWaiting is the hardest part

Average 8 tracking requestsfor every parcel shipped

Returns – the black hole of communicationWaiting is even harder on the return journey

of retailers provide transit

triggers on deliveries

92%

Source: Newgistics Customer Experience Study 2017Pitney Bowes

of retailers provide transit

triggers on returns

7%

Pitney Bowes

Communication – more is better

Goal: keep them out

of customer support

Mobile first

Push and pull

New information every time

It doesn’t stop at delivery

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Make returnseasyOr I won’t come back

Returns are key to returning customersAnd, it isn’t going so well

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46%of US consumers

have kept an

unwanted purchase

because the return

was inconvenient

39%of shoppers are not

satisfied with the

returns experience

Source: eMarketer 2017, Pitney Bowes 2017 Global Shopping Survey

Pitney Bowes

The Returns Paradox

70%Shoppers likelihood

to buy again

significantly

increased if refund is

received in 24 hours

67%Shoppers who review

the returns policy

before purchasing

Source: eMarketer 2017, Newgistics Customer Experience and Market Surveys

57%Retailers who

have a complete

returns policy

on their site

Retailers who offer

free return shipping

(the rest are making a

profit on returns)

33%66%Shoppers who believe

free return shipping

is key to great returns

experience

46%Retailers have a

refund target greater

than 7 days

Returns don’t have to be so hard

Pitney Bowes

Challenge your real motivations –

near-term profit or repeat purchase?

Review your policy – is it clear?

Make the label easy to find

Use data to accelerate refunds

Pitney Bowes

Don’t forget your international consumersSame expectations, even

harder to deliver

Cross-border is the new imperative93% of retailers globally already operating or planning to go cross-border

Pitney Bowes

62% 31% 7%

Already operating

cross-border

Plan to go

cross-border

next 12 months

No

plans

What is cross-border?PERCEPTION vs REALITY

Logistics

Logistics

Marketing/

Demand Gen#1 challenge

for cross-border

expansion

Global

Marketplaces93% of Chinese &

Indian consumers’

online preference

Post-Purchase

Customer CareInhibitor for

1 in 4 global

consumers

Fraud &

Compliance20+% order

reject rate

common

Conversion

Optimization30% revenue

lift from

improving UX

Pitney Bowes

Pitney Bowes

Global consumers have similar expectations

High shipping cost 59%

Slow delivery 32%

High prices 33%

Inconvenient returns 26%

Product quality 26%

Product quality 59%

High Prices 57%

High shipping cost 55%

Slow delivery 55%

Inconvenient returns 46%

Top 5 frustrations of cross-border

digital consumers outside US

Top 5 frustrations of

US digital consumers

Pitney Bowes

Mastering the post-purchase experience

1 Get inventory closer to the consumerHelps with fast and free

2 Pick the right carrier, every timeLeverage their strengths to your advantage

4 Make returns easy Or I won’t come back

5Don’t forget your international consumersSame expectations, even harder to deliver

3 Communicate – it’s all about the dataBecause waiting is the hardest part

Pitney Bowes joins ChannelAdvisor

Shipping Management Suite

THANK YOU