- Copyright 2000
by Jobs and Money. Reprinted by permission of the publisher.
Sales Experts Claim Customer Service, Retention to Rule Net
By: Mark Heisler and Suzanne Baldino Jones, Partners CBSG
Citing poor holiday sales coupled with poor customer service, many experts predicted the demise of Internet sites following the last big holiday season. Doom and gloom may be in, but the Internet is doing quite well, thank you.
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According to Forrester Research, Internet sales are expected to double from $20 billion in 1999 to $39 billion in 2000. In addition, more than 28 million households march to the beat of online business—11 million of those will be added just this year alone. Not everything is rosy in Online Town. By the year 2000, 8 million households will join the ranks of online shoppers. By 2002, that figure will drop to 6 million.
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Unfulfilled promises, poor backend systems, shoddy products and treating customers like dreg will most certainly contribute to the decline of online customers. Smart business owners on the Web will pay more attention to the fact that as the overall number of online shoppers drops, those previously purchasing online will contribute $7 or every $8 on the Web.
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What does this mean to you?
- You are probably
better off generating profits from existing customers rather than going
out and getting new ones. If your online sales aren’t humming a happy
tune approaching Halloween, they will be outright crying by the December
holiday season. Here’s how to avoid this and build solid online sales:
- 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 in
setting up information systems and other internal capabilities.
Let them know you value their opinions.
- 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.
Shop around.
- Focus on
service delivery. Emulate brick-and-mortar service delivery
operations. Under-promise and Over-deliver.
- Develop
online customer retention strategies. Once you get customers,
keep them by devising means to let them know they are important.
Offering rewards and special sales are fine, but don’t overlook
simply keeping in touch consistently and the value of thanking them
for their business too.
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Mark Heisler and Suzanne Baldino Jones are principals and founders of Competitive Business Strategy Group, a sales and customer retention firm located in Mount Laurel, NJ. For more information, contact them at (888) 411-5800.