The More Pure the Free Shipping Offer, the Better

ForeSee Results’ recent study of major retail Web sites, The Top 40 Online Retail Satisfaction Index, found that free shipping without restrictions significantly impacts customer satisfaction and loyalty. The study also determined that free shipping is an effective way to convert first-time buyers.

But restrictions on free shipping actually can endanger long-term loyalty.

Forty-one percent of the more than 10,000 survey respondents cited free shipping as the primary factor in their holiday purchase decision-making. Seventy-nine percent went so far as to say it influenced them to choose one retail site over another.

Among the key findings:
• Free shipping without restrictions is a powerful tool for increasing customer satisfaction and loyalty.
• When offered with restrictions or limitations (e.g., when tied to dollar value of purchase), free shipping does not significantly impact customer satisfaction and loyalty.
• Free shipping without restrictions is a powerful conversion tool for first-time buyers.
• 63 percent of online holiday shoppers remembered seeing free shipping offers, 24 percent said it wasn’t offered to them, and 13 percent couldn’t remember.