Shoppers Have Low Tolerance for Poor Online Experience

One of the biggest challenges is tying together the online channel with other customer communication avenues, says Aberdeen Group's Kent Allen. Regular online customers find it annoying when the associate at the local store has no clue who they are, or vice versa.

Customers who shop online increasingly expect excellent site design, service and fulfillment, according to a recent survey of 2002 holiday season shoppers conducted by AMR Research. Among customers who purchased gifts online this year -- spending about 25 percent more than their offline counterparts -- 20 percent had what they described as a "bad experience" and do not plan to return to those sites.

The report contends that botching customer satisfaction through the online channel can damage more than e-commerce revenues. More than 60 percent of those surveyed indicated that they patronize the same retailers online and off -- thus, a bad experience in one channel can negatively impact customer loyalty through all channels.

Chat Good at High End

CRM tools like live chat can help with high-end products, such as furniture or high-tech equipment, says AMR retail research director Paula Rosenblum. However, with low-end retail products, it is the site's navigability and usability that count, because customers of those retailers have very short attention spans and will not avail themselves of customer service even if it is available. "Some things you have to do right the first time," she told CRMDaily.com.

Chat also can help with customer retention when technical support is needed. Rosenblum pointed to her own broadband Internet service through AT&T (NYSE: T) . "The Web site provides live chat service for technical problems, which I find very handy," she said.

Price Expectations Fall

Fewer online customers are looking for a price break through a retailer's Web site, according to the survey. Although the vast majority of respondents used the Internet to research products, just 20 percent ranked low price as their reason to make a purchase online. However, 35 percent said they wanted to avoid the hassle of in-store shopping. Nearly 15 percent sought to streamline their to-do lists through one-stop shopping.

Since price no longer rules, Rosenblum said that good customer service is gaining ground with both online and offline shoppers. Having all data about a customer in one place is a goal she recommends pursuing. And that means gathering customer behavior data from various channels.

Missing the Mark

One of the biggest challenges of e-commerce is tying together the online channel with other customer communication avenues, Aberdeen Group's Kent Allen told CRMDaily. Regular online customers find it annoying when the associate at the local store has no clue who they are, or vice versa.

Rosenblum gave the example of a recent purchase she herself made -- a thousand-dollar suit. In a conversation with the salesperson at the brick-and-mortar store, she indicated interest in other products from the retailer.

"I didn't hear from that retailer for six months," she said, "and then they sent me an enormous catalog that must have cost them several dollars to produce." On top of the lag time between her purchase and the next contact, the retailer got crucial information about Rosenblum wrong. She had bought that expensive suit in a special size, and the elaborate catalog had not one item to offer in her size range.

Mentioning Nordstrom (NYSE: JWN) as "a notable exception," Rosenblum said that department stores, in particular, seem to be "thrashing" as they seek to improve customer service across all channels.

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What Your Customers Hate About Your Website

By Kimberly Hill
CRMDaily.com
February 25, 2003

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