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AUGUST 29, 2002 EURO-TECH By Andy Reinhardt E-Commerce: It's All About the Experience A technically proficient Web site is just half the battle. Without quality service -- and an enjoyable process -- customers won't return
Sometimes the problem lies with poor software design, as with the maddening Web site for France's SNCF national railroad. It's slow, poorly organized, and sometimes inaccurate. Yet, I keep returning to voyages-sncf.com because it's easier for me to pick my way through a clumsy Web site than to understand rapid-fire French over the telephone. Most of my French friends have sworn off the site out of frustration. At least they're masters of the language. DISCONNECTED. Other times, a site works fine, but the business processes behind it don't cut the mustard. A colleague found that out recently when she bought an Air France ticket -- through voyages-sncf.com -- and was then thwarted in her efforts to cancel it in time to earn a refund. The culprit: The Web, e-mail systems, and telephone support don't talk to each other. She called early enough to cancel the reservation and sent an e-mail confirmation as requested. But the systems were so poorly integrated that nobody read the e-mail, and now she's stuck holding the bag for an unused ticket. The same colleague also stumbled on another classic e-commerce problem: Bricks-and-mortar stores often aren't linked with their online operations. Shopping for a gift online, she found an inexpensive flat-screen monitor at FNAC.com, the Web site of France's leading electronics and media retailer. But when she decided to avoid a hefty shipping charge by buying the product instead at a local FNAC outlet, she discovered the limits of "bricks-and-clicks" hybrids: The store carried only much pricier models, and the clerks disavowed any connection to the company's own Web site. My disappointed colleague left empty-handed. A BUSINESS BASIC. Problems such as these are mostly a matter of technology, and as such, they should be easy to fix. But the more I buy over the Web, the more I realize that what really sets the e-commerce sites I love apart has little to do with technology. Instead, it boils down to people -- specifically, customer service and support. In this regard, the Web is no different from conventional stores and catalogs. Some treat their clients well, others don't. Over time, buyers tend to stick with the former and turn their backs on the latter. As basic as it seems, many online businesses haven't mastered this lesson yet. They get caught up in cool technology tricks or the novelty of their business model. Or they think that offering lower prices or bigger selection is enough to keep customers coming back, even if the ultimate purchasing process is marred by problems with deliveries or returns. However, the Web offers no magic that justifies shoddy service. Customers have to enjoy their relationship with a business or they won't develop loyalty. And without a steady stream of repeat customers, Web outfits can't ever hope to be profitable. GREAT SAVINGS, LOUSY SERVICE. All these points were highlighted for me by my recent disappointment with online car-rental company easyCar.com, which is based in Britain and operates in 19 European cities. It has a simple and appealing premise: If you're willing to rent only over the Net and accept only one type of car at each outlet -- usually a Mercedes-Benz A-Class hatchback -- you'll get a greatly discounted price compared to established car-rental outfits. The problem with easyCar isn't with its Web site, which is easy to navigate and a strong tool. It's when you go to pick up the car. Usually, only one person is working behind the counter, so the wait is often long and aggravating. (By comparison, during a recent pickup at Avis in Bordeaux, four people were working the counter with no line at all. But, hey, the prices are higher.) The rental process at easyCar involves what seems to me too much paperwork. And frankly, the personnel seem short on training, which makes the transaction even more trying. (The company says it's working to develop more streamlined procedures, especially for repeat customers.) AMAZON'S APPROACH. It all comes down to value. Saving money, after all, needn't be antithetical to enjoying yourself. Just look at Costco Discount Warehouses and Southwest Airlines, both of which turn discounting into something worthwhile, even fun. But after using easyCar a dozen or so times, I've decided saving money doesn't necessarily offset the difficulties. I can't help comparing my dealings with easyCar with what it's like to use Amazon.com. Sure, one hears occasional stories about service nightmares. But generally, I've found that Amazon offers a virtually flawless customer experience. I've received items I didn't order by accident, and the reps have simply told me to keep them. Once, the packing list showed a CD I had ordered, but it was nowhere to be found in the carton. Without putting me through the wringer, Amazon simply sent out another copy. I've even seen the etailer pick up extra shipping costs to send items sooner in separate packages, even though it usually charges for staggered deliveries. GOING OUT OF ITS WAY. Such customer service doesn't come cheap. But neither does the sense of loyalty it engenders. To be honest, I don't even think anymore about whether I'm getting a better price on Amazon: That's not my principle motivator. Rather, I continue to use it because it's hassle-free. The outfit seems to go out of its way to take care of me -- even if that occasionally means eating some extra cost. In fairness, Amazon enjoyed a long honeymoon with investors that allowed it to underwrite such generous customer support. easyCar hasn't had the luxury of a rich IPO or a community of giddy Wall Street analysts to explain away big losses. The privately held company was launched by Greek entrepreneur Stelios Haji-Ioannou, who also started Europe's top discount airline, easyJet, and is building an assortment of other novel businesses, such as the easyInternet cybercafé chain and the easyMoney credit card. All of Haji-Ioannou's companies share a common dedication to variable-pricing models, based usually on how early bookings are made or, in the case of the cybercafés, usage during peak vs. off-peak hours. They focus on delivering value by making extensive use of the Net. At easyJet, 90% of tickets are booked online, allowing the airline to pass back to customers millions of dollars it would otherwise spend running a telephone service center. And Haji-Ioannou's businesses demonstrate a candor with their customers that's unusual, especially in Europe. At easyCar, the extra charges and fees tacked onto the basic rental rate are explained in detail on the Web site. FADING THRILL. The primary customer motivator, Haji-Ioannou argues, is lower prices. It's hard to argue with the success he has already enjoyed with easyJet. But I have to say this is where he and I part ways. I agree that customers like doing business over the Web and saving money. But they also want a satisfying experience -- the kind that comes from being treated well even while they're getting a great deal. Without that, the thrill of a bargain fades quickly. easyCar seems to have put more effort into technology than into service, whereas Amazon seems to put a strong emphasis on both. In the long run, I'm convinced, the most prosperous e-commerce businesses will be those that don't just woo customers with a quick thrill but wow them over and over with the pleasure of doing business. That's real value.  Reinhardt covers the European technology scene from BusinessWeek's Paris bureau Edited by Douglas Harbrecht Get BusinessWeek directly on your desktop with our RSS feeds.  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