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/v3-uk/news/1978416/online-retailers-failing-customer-service
22 Sep 2008, Phil Muncaster , V3
Many internet retailers risk losing customers and sales by failing to deliver an appropriate level of customer service, according to research released today.
The annual Online Customer Experience survey from online behavioural analysis firm Tealeaf found that 90 per cent of consumers encounter difficulties with online transactions, prompting half of them to abandon the transaction altogether.
Part of the problem lies with firms not offering customers enough options, whether in terms of delivery times or contact points, according to independent customer experience strategist Max Blumberg.
Many firms, especially smaller online traders, are also failing on usability, according to Blumberg, while others need to promote their security credentials more heavily to allay consumer fears.
"The research concluded unequivocally that consumers are concerned about how their data is being used," he said. "If you are doing the right things, but not telling people, it means you are unaware of what the market is afraid of."
Paul Sharrock, technical director at online retailer Dabs.com, argued that usability testing is not enough to improve the consumer experience.
He added that online behavioural analysis tools which can show how customers interact with web sites can provide much needed insight.
"Every site is going to have some drop offs," explained Sharrock. "It's about making sure that as many people as possible get through the shopping experience. "
Do you agree?
Retail service
It also depends on the quality of the retailer Amazon perhaps being the best has always shone for me the are quick to respond and take goods back and they phone you using there interactive phone back service
Posted by Alan, 22 Sep 2008
Customer needs have changed- a more personalised approach is needed
Consumer needs have greatly changed since the rise in internet shopping and web usage, the results illustrated by the Tealeaf survey reflect this. If companies continue to lag behind with their below par customer services, there are enough alternative products for customers to switch to. This places consumers in a very powerful position; if 90 per cent have the desire to change due to difficulties with online transactions it can and will have a damming effect on internet retailers
I agree that customers need to be given more options, but these need to be relevant to their shopping habits. The answer is multi channel insight; businesses need to be collating customer information across all touchpoints (on and offline) to build single and holistic profiles of individuals. Consumers are tired of standardised services and these results indicate that there is a high demand for a more personalised approach. As shoppers become more sophisticated so should the marketing strategies of organisations, which evidently need a richer understanding of customers as individuals.
In light of the current economy, retaining a positive relationship with customers and the loyalty that they can bring has never been more prevalent. Concerns over how data is being used can easily be acquitted if data is used effectively to improve online shopping experiences
Posted by Matthew Stainer, Customer Management Expert, SAS UK, 26 Sep 2008