|
|
 THE STAT 26Percentage of wireless customers who use their cell phones to take picturesMore Vitals
| |
NOVEMBER 24, 2003
E-Shoppers Are Now E-Spenders Retailers are learning to give Web customers what they want, such as better integration of sites and stores and flexible return policies Eggnog chugging and mistletoe kisses are among the few rewards for holiday shoppers after weeks spent fighting punishing crowds and long lines. But millions of consumers have found an alternative. Shopping online is a way around the season's stressed-out, tantrum-throwing children (and adults) and indifferent sales help. Compared to last year, Internet retail sales this holiday season are expected to jump 21%, to $16.8 billion, according to Jupiter Research, while overall retail sales are forecast to rise closer to 5%. That discrepancy largely reflects the fact that it's easier to grow faster from a much smaller base. Yet something deeper is at work. Online shopping's lure isn't just dirt-cheap prices, flashy Web graphics, or even free shipping. In a perverse way, the coolest, techie tricks can hinder Internet retailing by clunking up and slowing down a site. MOTIVATED TO PLEASE. It seems that the virtual world's top retailers are succeeding because they've learned the simple and time-honored tradition of keeping their customers satisfied. The idea is straightforward -- at least in concept: Provide a good experience consistently, and buyers will keep coming back. "What defines a retailer is how well it serves a meaningful group of customers," says Ken Seiff, chief executive of online fashion retailer Bluefly (see BW Online, 11/25/03, "These Sites Are a Shopper's Dream"). That's the strategy more and more e-tailers hope to take to the bank. Recently, e-commerce sites have been surpassing physical stores in satisfying customers. According to the latest American Customer Satisfaction Index update, published by the University of Michigan, satisfaction with Web retailers rose six percentage points during 2002, to 83 on a scale of 100. That compares with a flat rating of 75 for store-based retailers. Perhaps because Internet shops such as Bluefly have only a virtual venue in which to prove themselves, they're much more motivated to please consumers. "Online retailers are run by an innovative group trying to succeed," says Seiff, whose own site's traffic and sales are growing, though it's still unprofitable. "MORE SERIOUS" ENDEAVOR. Household names such as Amazon.com (AMZN ), Yahoo! (YHOO ), and eBay (EBAY ) have led the charge on consumer satisfaction. But a variety of retailers, from gourmet grocer FreshDirect to subscription DVD renter Netflix (NFLX ) to the Sears' (S ) Web site, have honed their customer-pleasing skills as well. They've all focused on elements such as site usability and design, flexible return and exchange policies, attractive shipping options, and after-purchase support -- all of which have improved measurably from just a few years ago. Online selling "has been a more serious" endeavor, says Phil Terry, CEO of New York-based Creative Good, a Web-usability consultant. "Companies are more committed to creating products and services that actually work." The number of consumers who cite credit-card security, return policies, and on-time delivery as concerns has decreased, according to Jupiter (see BW Online, 11/25/03, "A 'Behind-the-Scenes' E-Commerce Power"). Some of the biggest Web successes are "multichannel" retailers -- those that sell both on and offline. Many, like REI, an outdoor gear purveyor whose online operations are profitable, are increasingly trying to figure out how to better integrate online and offline resources to produce higher revenues and earnings (see BW Online, 11/3/03, "Web Synergies Pay Off"). "We're trying to expand our view of our customers," says Joan Broughton, REI's vice-president for multichannel programs. Her focus is helping customers find and buy the right item online, deliver it however they want, even in stores, and to provide excellent phone support for both efforts. TWEAKING THE DETAILS. Another store-based retailer taking this holistic approach is office-supplies retailer Staples (SPLS ). Its products are largely commodities, so getting customers to use its site or store vs. a competitor's is all about consistent service. "We're always remodeling the site, making small or large tweaks," says Colin Hynes, Staples's director of usability. Like REI's Broughton, his responsibilities stretch across Staples' catalogs, stores, and Web site. "We want to make [shopping] so easy that it's seamless," he says. To that end, Staples.com recently set up an easy reordering function that lets a customer quickly tick off from a checklist items ordered in the past.
BW MALL
SPONSORED LINKS
Buy a link now! | | |
 Copyright 2003, by The McGraw-Hill Companies Inc. All rights reserved.Terms of Use | Privacy Notice |
Printer-Friendly Version