Friction is costing Australian businesses $29 billion per year

20 Sep 2018

  • Digital Marketing
  • Customer experience
  • Content
  • Marketing Technology

By Marco Corsi, Head of global brand partnerships, Facebook

Customer experience is crucial in today’s age of instant gratification. People expect a seamless experience from discovering a product or service, right through to flawless delivery, timely customer service and personalised follow up.

80% of consumers say that the experience a business provides is as crucial as its goods or services . If companies are not meeting consumers’ high expectations of a frictionless experience, they can easily switch to find one that will or abandon the purchase journey altogether.

According to the Boston Consulting Group, this is costing Australian businesses $29 Billion every year.

The stages of friction

The key to a zero-friction future is managing three phases in the consumer journey: Discovery, purchase and post-purchase.

The first thing businesses need to look at is your consumers’ journey. How do you make it as easy as possible for them to discover your brand and find exactly what they’re looking for? How easy is it for them to purchase and pay both offline and online? How seamless is your fulfilment process and how accessible is customer support at all times?

Next, it’s vital to make sure you keep customers coming back for more post-purchase by providing easy repurchase options and rewards for loyalty.

In each of the three phases there are a number of possible friction points. Here is a full list of pain points that your business may be facing:

 

 

 

Eliminating friction

If your business is facing one or many of the friction points above, it’s important to take a step back, formulate a strategy and analyse which areas are going to bring a competitive advantage, and which are core to your brand promise.

 

1. Map the friction points in your consumer journey

Getting to know your customers must be a top priority. Identify what steps they’ve had to take to complete their journey what pain points they have encountered. Conduct customer surveys, ethnographic research and stakeholder interviews to identify inefficiencies in your existing process.

2. Analyse where consumers abandon their journey

Examine the data and evaluate how these friction points affect your business. Identify the stage at which most consumers face friction points in their journey and consequently drop off. Determine which friction caused the biggest revenue loss and what the expected business growth is if these pain points are removed.

3. Implement a friction-busting action plan

Following the analysis, formulate a strategy that will reinforce the benefit of your core service or product and help your business gain a competitive advantage. Removing friction should not just be about improving your business; more importantly, it must improve and benefit the consumer experience.

At Facebook we are always working on creating a frictionless experience for customers. For example, we always strive to provide the most relevant information and content to people based on their interests. Having Facebook Log-in allows them to skip filling in tedious forms to register for a new website. And we also have the ability to shop and buy directly from the image itself on Instagram, without a third-party website.

A frictionless experience is not a simple task and needs constant work, but it provides a huge opportunity for your business to gain a competitive advantage in today’s ‘I want it now’ culture.

If you are interested in learning more about Zero Friction Future and hear how industry leaders across APAC are removing friction for their consumers, please visit www.zerofrictionfuture.com

Need more info?