e-commerce problems creating backlash?

Friday, 02 Oct, 2007 0

Problems with e-commerce failures may be creating a consumer backlash with a recent survey showing 42% of online consumers abandoned or switched to a competitor after transaction issues.

The survey was commissioned by Tealeaf, a US specialist in customer experience management software solutions. In it, Harris Interactive found about 87% of consumers conducting transactions online have experienced problems.

“More than half who have experienced bad customer service from a company’s contact center, following an online issue, have completely stopped doing business with the company,” the report says.

“As problems persist, consumer backlash is permeating the online channel. A lowered cost of switching online merchants — alternate providers are just one click away — has radically changed shopping behavior,” says the survey.

Often, companies are subjected to drastic consequences when they fail to deliver  —   illustrated by the 42% of online consumers who abandoned or switched to a competitor after transaction issues.

Almost two thirds of consumers did not feel that the service agent was knowledgeable about the Web site; and another two-thirds did not believe the agent understood their particular issue.

“We’re in a `perfect storm’ as users’ dependency on e-commerce grows and their patience for bad online experiences wears thin,” said Rebecca Ward, CEO, Tealeaf. She added:

“Companies doing business online must pay attention to their customers’ experiences and help them to succeed, or risk losing them entirely. The only way to understand issues, improve conversion rates and better serve customers is to have visibility into everything that happens on your online channel.”

She said this risk of abandonment is escalating not only after initial online transaction problems, but also for those who try to remain loyal.

Report by David Wilkening



 

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