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Study shows that dot-coms fail at customer service

Johannesburg, 20 Jun 2000

With dot-com businesses being called to order on US stock exchanges, a new study indicates that some dot-com businesses do not provide adequate customer service.

Up to a quarter of dot-com companies cannot fulfil orders due to technical problems, and more than a quarter do not respond to customers` e-mail at all, the study has found.

While some studies show consumers are satisfied with their online shopping experiences, stories of purchase-provoked lawsuits and segments of Web customers strongly dissatisfied with their experience still persist.

, a US-based research house, recently conducted a 10-week study of online retailing sites, placing orders, returning merchandise and contacting customer service representatives, and observing how each performed.

Resource Marketing spokesperson Kelly Mooney`s summary was: "In the race to grab new business, many sites are forgetting the customer." The study found:

  • 25% of companies had technical glitches that prevented customers from placing orders
  • 6% of packages failed to arrive
  • 56% of companies did not respond to e-mail within 48 hours
  • 26% didn`t respond at all

Speed, convenience, and customer service are the true motivators for online spenders. Yet many e-businesses are struggling to fulfil all these needs. Industry statistics clearly show that a large number of online transactions end in abandoned e-shopping carts.

Leon Theron, MD of DataCentrix company , says: "If businesses could see what their users experience, first hand, they might better understand the obstacles to their own success."

Being able to track and refine a website based on live data from the end-user allows e-businesses to increase efficiency and responsiveness. "The e-businesses that ultimately succeed," adds Theron, "will be those that leverage customer service as a key competitive differentiator, by capturing and maintaining customer loyalty through fast and reliable Web-based service."

And the key, Theron says, is a closer examination of the entire online shopping experience from the shopper`s perspective.

"This will yield valuable clues, and ultimately bring the retailer closer to the customer."

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Editorial contacts

Peter Heydenrych
Priorities
(011) 608 1700
peter@priorities.co.za
Leon Theron
Datacentrix Holdings
(011) 802 4510
leon.theron@ssw.co.za