Sales experts claim retention, customer service to rule Net

FOR IMMEDIATE RELEASE: Contact: Mark Heisler February 18, 2000 Suzanne Baldino Jones (888) 411-5800

Sales experts claim retention, customer service to rule Net Many experts are claiming poor sales and customer service performance will doom Internet sales in the new millennium. Mark Heisler and Suzanne Baldino Jones, principals in Mount Laurel, N.J.-based Competitive Business Strategy Group, note that while many suffered poor Internet shopping experiences this past holiday season, Internet sales will increase from $20 billion in 1999 to more than $39 billion in 2000. In addition, 11 million more households will become Internet shoppers this year, adding to an existing 17 million. More than one-quarter of those will spend an average of more than $1,000 online. But that’s only the good news. According to Net Effect Systems, 67 percent of online shopping baskets are abandoned due to inadequate customer service and only 5.7 percent of visitors ever get to the checkout line at all. “It’s clear that retailers neglected back-end systems in 1999,” says Heisler. E-commerce sites would be wise to address customer retention and service issues now, Jones stated. A Forrester Research study reveals by 2001, only 8 million new online shoppers will be added to the customer base—and that figure drops to 6 million the following year. Clearly, the supply of new customers is not inexhaustible.

“Our approach indicates businesses may be better off generating profits from existing customers rather than focus on getting new ones,” says Jones. Jones, a customer service expert, and Heisler, an experienced sales and marketing executive, created a “Continuous Customer Contract” integrating generating sales with service delivery. Selling Power magazine calls the contract approach “unique.”

Heisler and Jones claim businesses reassessing or devising new e-tailing strategies should focus efforts around six key points to build an online presence:

• Determine the primary objective for online sales. Is your Internet site a direct distribution channel, a site to generate new prospects or a way to augment service to existing customers?
• Technology is a tool, not a means to solve all problems. In another Forrester Research study, attracted by a 20 percent off coupon and same day shipping, an analyst placed an order online. Several days later, he received an e-mail confirming the shipment less one backordered item. Customer service had no record of the order when he called. When he finally got the order he was charged full price. Technology won’t fix this.
• Solicit customer feedback. Use your site to ask customers for help setting up information systems and other internal capabilities.
• Test your site at home. Many customers may not have the fastest modem, the blazing speed of Mercury or downloads that occur in a snap. Learn how most of your customers view and experience your site.
• Focus on service delivery. Emulate brick-and-mortar service delivery operations.
• Develop online customer retention strategies. Once you get customers, better keep them.
  
  

For more information, contact Mark Heisler or Suzanne Baldino Jones at (888) 411-5800 or by e-mail at sbjones@cbsg.com.