Online retailers can enhance customer loyalty, repurchase rates and marketing efforts by replacing just one customer experience dynamic: the conventional brown shipping box.
Using unique, gift-like boxes or bags extends the brand experience to customers’ front doors, and “greatly contributed to our rapid growth [of about 45%] month over month during 2012,” said Morgan Hermand-Waiche, Founder and CEO of Adore Me.
“Since our products are sold exclusively online, the first physical impression customers usually get of our brand is through our packaging, which is why it is especially important that packaging represent and reinforce our brand by featuring our logo and colors,” said Hermand-Waiche. “All of our products are also hand-wrapped in colorful tissue paper, sealed with a branded sticker, and accompanied with a personal note. This attention to detail certainly enhances our customer experience and loyalty.”
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In fact, 52% of U.S. consumers are likely to make repeat purchases from eTailers that deliver orders in premium packaging, according to the 2013 eCommerce Packaging Survey from Dotcom Distribution. Nine out of 10 consumers have re-used a branded box or bag after purchase, further extending brand visibility. In addition, 35% of consumers discovered a new brand after seeing branded packaging carried in public.
“We want our customers to be engaged with everything we send them, including our packaging,” stated Ken O’Grady, VP of Operations for Poppin. “Poppin is about style and beauty. We portray that in all our products as well as our packaging. All our shipping cartons are a different design, vibrant color, with a different fun message from Poppin on each. We want our customers to smile when they first see our package arrive at their home or office.”
The survey from Dotcom Distribution also indicated that nearly 40% of consumers would share a picture of an online delivery via social media if it came in a unique, branded or gift-like box. Of those sharing, 83% would do so on Facebook.
Most consumers (53%) said premium packaging is important when comes to jewelry purchases. Results showed that gift-like packaging is more important to males (31%) than to females (22%) when buying jewelry.
Most (63%) of consumers said that it is important or very important that a retailer’s packaging be sustainable. “Sustainability is also a driver in the customer’s decision to re-use a branded retail bag or box,” the study showed. Additionally, “84% of consumers re-use branded packaging in order to cut down on waste. Sustainable packaging not only strengthens the customer’s reason for re-use, but also demonstrates that the brand cares about the environment.”
Because online retailers compete with the in-store experience, they should carefully consider the importance of premium packaging in e-Commerce. “Customers look for the ‘wow’ factor when shopping online and when receiving a package,” said Maria Haggerty, President of Dotcom Distribution. “It’s clear that a retailer’s packaging choice can have repercussions. Our findings show that packaging is not to be overlooked or underestimated for its potential impact on a brand. In the competitive retail environment, delivering a superior customer experience through premium packaging will put a brand ahead of the pack.”
Both Adore Me and Poppin are DotCom Distribution customers. For more information from Retail TouchPoints about how the Adore Me application drives revenue, click here. Other eTail users of premium packaging from DotCom Distribution include Birchbox, Bliss, Eataly, Fab, INTERMIX, Lululemon and vineyard vines.
A complete copy of 2013 eCommerce Packaging Survey is available here.
