A poor customer experience is one of the easiest ways to miss out on potential sales. Here are six ways it could be crippling your F&B revenue during COVID.

How a Poor CX Can Cripple F&B Revenue During COVID | Union

6 Ways Your Food & Beverage Customer Experience is Crippling Your Revenue During COVID – and How to Fix It

As we shared in our <a href="https://union.co/articles/purchase-convenience-during-covid">recent blog post</a>, mandated lockdowns, rising coronavirus caseloads and general health concerns are forcing customers to accelerate their adaptation to digital-first buying behaviors. More customers than ever are leveraging digital technologies to complete their purchases entirely online or to augment their in-store shopping trips. Which means if your customer experience isn’t meeting your customers’ expectations, it could be costing you the sale. 
From your online store to your in-person retail shopping experience, here are six ways a poor customer experience could be crippling your revenue during COVID.

According to a survey conducted by <a href="https://baymard.com/lists/cart-abandonment-rate">Baymard</a>, 21% of buyers won’t complete their purchase if the checkout process takes too long or is cumbersome. Examples of an overly complicated checkout process include: 

<ul><li dir="ltr">Mandating too many unnecessary fields.</li><li dir="ltr">Requiring shipping or credit card information more than once.</li><li dir="ltr">A process that’s not being optimized for mobile devices.</li></ul>
The same survey found that 28% of respondents would abandon their purchase if required to create an account to complete the transaction.
While your brand might salivate at the thought of collecting all that customer data, requiring a customer to create a profile before making a purchase can have a significant impact on cart abandonment.
Solution: Only ask for the specific information you need from the customer to complete their purchase. Never ask for the same information twice. Also, be sure to offer customers the option to complete their transaction as a guest without forcing them to create a store account.

<h4 dir="ltr">1. Complicated checkout process</h4>

A non-functioning website or poorly optimized mobile experience is the reason behind <a href="https://baymard.com/lists/cart-abandonment-rate">13% of abandoned carts</a>.
Solution: Regularly audit and test your website and checkout process to ensure that it is properly functioning. Review heatmap and other user data points to identify areas of site congestion or abandonment. Then roll out new design/technology tweaks to fix these trouble areas.

2. Poor user experience/design

Before COVID, shoppers could go to in-store events or ask a local customer service rep for information on how to get the most out of a new product. However, with recent lockdowns and store closures, those avenues for support are no longer available to most shoppers.
COVID shoppers are searching for online resources to teach them how to bake their own banana bread, brew their own beer, and apply their own makeup. This desire to learn creates an opportunity for F&amp;B brands to grow their relationship with their customers by providing these resources that support the new DIY customer.
In fact, a survey conducted by Google earlier this year found that 30% of prestige beauty brand consumers aged 18-34 would like a digital experience (virtual try-ons, live content, consultations, etc.) from beauty brands.
Solution: Create content and digital experiences that educate your customers on how to get the most value out of their purchase.

3. Lack of customer support or educational resources

Shopping in-store can be a <a href="https://www.nytimes.com/2020/09/02/business/retailers-holiday-shopping.html">nerve-wracking experience</a> for many customers during this pandemic. To help to mitigate these concerns and help ensure a more positive customer experience, retailers need to create a safe environment for their customers. Occupancy limits, plexiglass dividers, masked employees and marked waiting areas can increase your establishment’s perceived safety rating. 

Solution: F&amp;B brands can work with their grocer and retail partners to ensure that they provide a safe environment for customers. Communicate these investments and precautions with your audience through social channels, email newsletters and other key channels.

4. Disregard to safety precautions

Is there anything worse for COVID-consumers than heading to a store for a specific product only to discover that it is out of stock? Where this may have been a rarity in 2019, in 2020, no consumer wants to take on the risk of making an unnecessary trip to a retail store.

Inventory levels are a concern for consumers, and <a href="https://www.businesswire.com/news/home/20191217005699/en/Frustrated-Consumers-Times-Satisfied-Consumers-Avoid-Buying">24%</a> of consumers have expressed unhappiness with not being able to check product availability before heading to their local store. This frustration can lead to purchase abandonment and damage long-term brand loyalty.
Solution: Invest in digital tools and systems that allow potential customers to check that an item is in-stock at a specific location before visiting a store.

<h4 dir="ltr">5. Lack of inventory transparency</h4>

<a href="https://www.lsretail.com/blog/how-to-reduce-queues-in-your-retail-store-and-keep-customers-safe">Nine out of 10 shoppers </a>say they avoid stores with long checkout lines. Most consumers want to keep their in-store visits as quick as possible. A long wait can cause many shoppers to abandon their purchase. 
Solution: F&amp;B brands can work with grocers and retail outlets to improve the checkout experience through mobile POS integrations, streamlining complex sales processes and supporting virtual queues.

6. Long checkout times

Customer expectations are higher than ever before. The sad reality is that many brands are letting their customers down when it comes to providing a positive customer experience. A recent study from <a href="https://www.niceincontact.com/call-center-resource-finder/2019-nice-incontact-customer-experience-transformation-benchmark-global-consumers">NICE inContact</a> found that <a href="https://www.niceincontact.com/call-center-resource-finder/2019-nice-incontact-customer-experience-transformation-benchmark-global-consumers">93% of consumers</a> demand or expect an integrated, seamless, omnichannel experience from a brand regardless of the channel.

In this same study, 73% of consumers gave companies a low rating when it comes to offering an integrated customer experience.
This misalignment of expectations can have a significant impact on your brand’s sales. According to <a href="https://www.salesforce.com/news/stories/state-of-the-connected-customer-report-outlines-changing-standards-for-customer-engagement/">Salesforce</a>, 74% of people were likely to switch brands if they found a purchasing process too difficult.
Poor customer experience is one of the easiest ways to lose potential sales and consumer trust.
In comparison, a positive customer experience can have a significant impact on a brand’s bottom line. A study conducted by <a href="https://www.businesswire.com/news/home/20191217005699/en/Frustrated-Consumers-Times-Satisfied-Consumers-Avoid-Buying/">Accenture </a>found that 47% of consumers say that they would be willing to pay more for an exceptional shopping experience.
Secure your brand’s place in a world of choice by providing a top-notch customer experience. Separate yourselves from your competitors, foster customer loyalty and increase your revenue in 2021 by making the necessary investment in improving your customer experience.
PS: Download our newest resource, <a href="https://union.co/white-papers/food-beverage-brands-driving-growth-in-a-covid-and-post-covid-world">Driving Growth in a COVID and Post-COVID World: What Food &amp; Beverage CPG Brands Need to Know About Changing Consumer Trends to Secure Success in 2021</a>, for even more tips and best practices.

The bottom-line impact of customer experience

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