Initially, web researchers focused on web technology and improved site architecture to induce customers to make purchases. This involved the introduction of innovative features such as browsable catalogs, secure transactions, and shopping carts. Yet many business analysts have dubbed web retailing "putting the cart before the horse." Many web retailers place entire catalogues of products and services in front of web surfers but do not offer them any motivation to buy. Thus, the retailer's website simply serves up information without actively encouraging sales.
Already, academicians and market analysts are predicting the end of the mass market. As web technologies close the gap between the consumer and the web retailer, the focus turns toward providing more personalized service to the e-consumer. More and more web retailers are using personalized customer service, and personalized customer service is one of the keys to increasing sales, improving customer retention, and increasing the consumer base.
E-commerce technologies allow for very small margins of error. Mistakes can mean huge losses in a scenario where customers are in a hurry to find the best bargains on the Internet. Therefore, the key to getting more orders via the Internet is to provide enhanced levels of customer service to web-retail customers.
The direct result of enhanced customer service is improved customer satisfaction. Many recent reports suggest that customer satisfaction with a web retailer is a key factor in determining customer loyalty and repeat orders. The best way to ensure customer satisfaction is by providing an optimal level of customer service to the individual consumer.
Further research indicates that price is not a motivating factor when it comes to acquiring orders. Rather, it is the "site experience" and "user experience" that motivate individual customers to remain loyal to a particular retailer. Therefore, one site may beat out another as a result of design even if the two sites utilize the same business model and cater to the same demographic.
Posting user testimonials on websites also increases overall user satisfaction. Researchers suggest websites that include testimonials may enjoy a 10% increase in user satisfaction.
Furthermore, chat technology offers real-time solutions for providing instant customer service. Customers often fill their virtual shopping carts and then click to view them before placing their orders but hesitate to buy at the last moment. Many web retailers now maintain teams of chat specialists to respond to pre- or post-sale queries. Although less than 5% of retail websites currently offer chat services, the initial response has been encouraging. Many web retailers have discovered that implementation costs for chat technology are lower than those for other customer service tools. Reports also suggest there is less shopping-cart abandonment when chat services are available.
