Internet retailers fail to learn

Tuesday, 03 February 2009 |

Online retailers have failed to listen to their customers. The latest research on Internet retailers shows that they have changed almost nothing on their web sites - even though they were told a year ago what consumers wanted. For instance, customers want 0800 or toll-free numbers on the web site. Fine, almost all major retailers do that. But less than two-thirds actually reveal that on their web site. This figure has moved only marginally since a year ago.

Now, given that your customers are saying they want an 0800 number - and you have one - why wouldn't you publicise that fact? Perhaps you are too busy showing off your guarantee. Consumers say they want 100% money-back guarantees. A year ago, according to the latest study, only 11% of the major online retailers offered that. Now, it's just under three-quarters (72%).

But little else has changed. Except some things went down. Customers want 24/7 access, but that has actually gone south - only 27% of retailers now offer that. People have also been saying for ages that shipping times are too long. But sadly, it now takes longer to receive goods from Internet retailers than it did a year ago.

So why are online retailers failing to respond? Because they are sitting pretty raking in the money. We've just had record online sales for some Internet retailers in 2008. Now, the snow in the UK has seen people rushing to online stores, instead of visiting the local shops.

Online retailers don't have to do very much to get the money pouring into their tills. So they think why should we bother to improve things? They won't make that much difference.

Wrong! And right! The minor things like making the 0800 number more obvious will not have a significant impact right now. But, in the future, when competition for Internet retailers increases these seemingly minor features will make all the difference. Adding them in at that stage will be too late; consumers will already be at those sites which do have all the things they want - like 24/7 telephone access, shipping that takes place immediately and emails answered within the same day.

People don't always know why they choose a particular online shop. They have a gut instinct. That comes from those seemingly minor signals of the 0800 number, the 24/7 telephone line and the rapid delivery promise.

If you run an online shop, here are the 10 things you need to show prominently in order to create the right "gut instinct" in your customers - therefore keeping them into the future.

Visible contact information on every page of your web site
An obvious 0800 telephone number
Obvious 24/7 telephone access to a real person
A visible FAQ page
A quick check out process
Real time inventory (no more "out of stock" notices)
One-click buying options
Same or next day shipping
Email confirmation of invoice and shipping
Pictures of products in the shopping cart

Have these - and your online shop will do well, whatever the weather.

7 Comments

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David Willis makes this comment

Wednesday 4 February, 2009

Interesting observations Graham. Excellent service on-line and off-line is what we all expect. I was searching for LED lights for my office and found a UK website. They appeared to have what I needed. I gave them a call to check them out, no waiting, I was put straight through to customer service. They were knowledgable and helpful. I placed my order on-line and received the goods the following day - great lights! Why the storey? This doesn't happen often enough. How often do we remark about the excellent service we received? Not as often as we should!
LouiseBJ makes this comment

Wednesday 4 February, 2009

As usual, you are spot on with this article Graham. And isn't it ironic that Woolworth will now be 'relaunched' as an online business? If only they had moved with the times - years ago - they might also still have a presence on the high street.
Gideon makes this comment

Wednesday 4 February, 2009

It would be very interesting to see how some of Ebay's sellers compare in terms of service; many of the people I've bought from understand the process: thank you for your order, we're processing your order, your order has been shipped, we hope you enjoy your purchase. I suspect that many of these individuals have learned best practice more rapidly than some of the 'experts'...
Graham Jones makes this comment

Wednesday 4 February, 2009

Gideon, I agree. Ebayers seem to realise what's wanted more than the "experts" inside major retailers headquarters offices.
Phil makes this comment

Wednesday 4 February, 2009

Graham, Excellent observation regarding online retailers. They are performing badly with shipping and increasing costs, rather than focusing on customer care. Agree with the comments regarding Woolworth. I've been saying it for years, they have not change with the times. You only had to walk and come straight out again. Where were the staff ideas/contribution to improve things, not to mention their advertising which was useless. It did not grab my attention. Enough said they only had themselves to blame for having their eyes and ears close (directors etc that is). Don't get me started on the Gordon Brown debate. What a fool, if the government learn to listen first and take action there and then, not 10 years later. So who going to pay for the older people who don't know what broadband is etc
Jason Finch makes this comment

Wednesday 4 February, 2009

Yup, and a fantastic easy-to-use product search facility. This is one of the key things that many online retailers fail to implement. Why? Because many still think it's about how *they* want to push the sales to the user, not how the customer wants to access information. I remember giving e-retail consultancy to the Boards of High Street retailers way back in the mid 90s, very few believed the internet would ever change the face of the High Street. The Woolworths irony is not lost!
Peter Abrahams makes this comment

Saturday 7 February, 2009

Good article. I think it is worth looking at the footers on a web page and see the things that should be there as I think in general they add to the users view of the trustworthyness of the organisation. The contact information should include, by law, the registered physical address of the organisation, registration number, and VAT number if relevant. Also on the footer should be links to information about privacy and security. Graham You will know that my hobby horse is coming "accessibility"! So congratulations on adding that to your footer. I will give you ten out of ten for your footer. The only thing you need to do now is to make your Captcha accessible for some hints see my blog http://www.it-analysis.com/business/compliance/content.php?cid=8390.