Voxware Research Reveals Significant Increase in Consumer Expectations for Online Retailers This Holiday Season

35.4% of consumers will abandon shopping with a retailer after
receiving 1 incorrect item

HAMILTON, N.J.–(BUSINESS WIRE)–#delivery—Voxware,
a leading provider of cloud based solutions for distribution operations,
today released consumer survey data demonstrating heightened
expectations to which online retailers will be held during the 2016
holiday shopping season. In the third biennial survey of its kind, more
than five hundred consumers were surveyed about their holiday shopping
plans, expectations for delivery of items that they purchase online or
by phone during the holiday season, and the impact that late or
incorrect deliveries have on their future shopping decisions.

As compared to the results of past surveys, in 2016 shoppers have
significantly increased their expectations for the accuracy and speed
with which retailers deliver holiday purchases. Smaller and specialized
retailers are not excluded from these increased standards with 67% of
respondents expecting a similar or better experience as compared to what
larger retailers provide.

Significant findings of the Voxware Survey of Holiday Shoppers 2016
include:

Consumer Expectations for Accuracy and Speed at the Holidays Have
Increased Since 2014

• 84% of consumers stated that expectations are higher than they were
  two years ago.
• 78% stated that their expectations for on-time and accurate delivery
  are higher during the holiday season than during other times of the
  year.
• 25% of respondents expect holiday gifts purchased online or by phone
  to be delivered within two days even if they have not requested
  expedited shipping, in 2014 only 8% of respondents had this
  expectation.

“Although few US retailers promise delivery within two days of an order
being placed, there is clearly an increased expectation for speed and
accuracy,” observed Keith Phillips, President and CEO of Voxware. “Call
it the ‘Amazon Prime Effect’ if you like, but understand that new
standards have been set and retailers need to meet or exceed them or
risk being passed over by consumers.”

The Negative Impact that Errors or Delays Have on Retailers is
Higher than Ever

• 27% of online or catalog shoppers will altogether abandon shopping
  with a retailer that makes even one error in product delivery. 63%
  will abandon shopping with a retailer altogether that makes 2 to 3
  errors in product delivery.
• 19% of online or catalog shoppers will abandon shopping with a
  retailer altogether that delivers a holiday purchase later than
  promised even one time. 60% will abandon a retailer if they deliver
  later than promised 2-3 times.
• 35.4% will abandon shopping with a retailer altogether after receiving
  1 incorrect item (up from 16.5% in 2014) 3 incorrect items or less
  will cost a retailer 91.8% of their customers (up from 68.4% in 2014)
• In 2014, only 35% of respondents reported being less likely or much
  less likely to make future purchases from a retailer that failed to
  deliver holiday purchases within two days of the promised delivery
  date. In 2016 those same reactions were selected by 45% of respondents.
• 27% of respondents expect to be offered some type of compensation
  (i.e., discount, coupon, credit, etc.) from retailers that send them
  an incorrect item. 9% expect to be offered compensation if items are
  delivered late
• 46% of respondents said that they were likely or very likely to
  publicly share their negative experiences online with an additional
  29% reporting they were somewhat likely to do the same.

Small and Specialized Retailers Must Perform as Well if not Better
than Larger Retailers

• 21% of consumers surveyed expect an even higher level of service from
  small and specialized retailers than provided by their larger
  counterparts.
• 46% of respondents expect them to deliver service that is equal to
  that of their large competitors.

“This survey shows that consumer expectations are at their highest level
during the holiday season with expediency, accuracy, and traceability
driving online retail shopping trends. Retailers are facing tremendous
pressure to get orders right and get them delivered faster than ever
before,” said Phillips. “With 77% of shoppers intending to have more
gifts delivered to themselves this season compared to last year, the
stakes are too high for fulfillment failures.”

About Voxware

Voxware helps organizations with teams who are on the move to more
effectively receive, act on, and communicate information critical to
their work. Our hands-free voice solutions enable employees to safely
and accurately speed through tasks, thereby boosting operational
productivity and improving customer experiences. What’s more, Voxware
easily adapts to changes in technology and processes, enabling
organizations to quickly address shifting demands without disruptions to
the operation. Our innovative approach to voice communication has proven
to help our customers increase profitability by cutting costs and
enhancing brand loyalty. For more information, please visit www.voxware.com.

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Contacts

Voxware
Media Contact
Sean Teaford, 215-644-6502
steaford@broadpathpr.com