The Value-added Activity
Begins after the Customer hits 'Submit Order'
http://ecnow.com/top10trends1999.htm
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October 1, 1999 *2,400 subscribers*
Volume 1, Issue 09
ECMgt.com Online: http://ECMgt.com
View this Issue: http://ecmgt.com/Oct1999
Print this Issue: http://ecmgt.com/Oct1999/full.issue.for.printing.htm ECnow.com 1999 trend #02: "Companies will begin to recognize
that the value-added activity begins after the customer hits 'submit order' and
that "Customer service will become the point of differentiation"
Comments From Our Readers Our bulletin board allows
readers to comment on trends and issues throughout the month. Please stop by to
add your comments and see all the responses at http://ecmgt.com/bulletinboard.htm
Question of the Month The topic for October
focuses on what happens after the Web customer submits an order. It's a three-part
question: - What importance do you attribute to fulfillment and customer
service?
- Are these areas becoming a key point of differentiation?
- If
so, how are Web sites differentiating themselves through fulfillment and customer
service?
Selected Answers of the Month ***
In today's
fast paced society, instant messaging, instant e-mail etc., there is this expectation
that when you deal with a company on-line, you expect instant service. I think
that is the "perceived advantage of shopping or doing business on the web.
The expectation is your orders are placed immediately and delivered immediately
at lower cost due to that lack of the so called middle man. So if a company on
the web is slow to respond, or their telephone ordering service is faster than
using the web, then why use them? I think many customers expect the same thing
I do. Fast service, ease of use, good follow up, cheaper price, and service after
the sale. (R.C., Santa Clara, California, USA) ***
Basically, I would have to say customer service is the most important way in which
to retain customers and add greater value to a service or product. Customer service
can also boost sales by interacting with a customer and educating them about special
features or additional tools that can be added to a service or product. (J.M.,
Boston, Massachusetts, USA) ***
Fulfillment and customer
service are where "the rubber meets the road" in any business, and always
have been. Marketing, branding and sales efforts can succeed wildly at "getting
eyeballs", or showroom visits in the case of traditional retailing ... but
if the customer does not receive genuine value-add and a pleasant experience "after
the sale", they will wander off to try the competition. Web-based
enterprises have a significant opportunity to deliver this, if their delivery
system processes are streamlined and smoothly integrated with their e-commerce
infrastructure. As an example, Amazon.com e-mails their customers with various
status and shipment confirmation checks, which gives the impression that quality
control is alive and well. And follow-up e-mails after a discreet period of time
ensure that this impression continues, as well as keeping the enterprise in the
customer's top of mind. (S.S. Toronto, CANADA) ***
It is more important than selling because fulfillment and customer service are
the attributes that creates confidence in your customers. If your customer has
confidence in you, it is more likely that he/she will come back to you again and
again. Web site attributes that I've seen being applied to accomplish these goals
include order tracking, post sale customer feedback, and sites (like Furniture.com)
that have their customer service representatives talking to their customer directly
about status, delivery and other questions. (G.M., Laurel, Maryland, USA) ***
I attribute a high level of urgency to fulfillment in the customer service equation.
Customer service is really the customer's perception of your company that is informed
by every contact the customer has over time -- we refer to this as the 'Branded
Experience'. Customer service is often referred to in the aggregate, but it is
built upon a foundation of individual experiences. The customer judges each contact
based on the their expectations. A contact might be a web-site visit, a phone
call, or simply receiving and opening a parcel, and maybe even returning a product…Many
online businesses have decided to deploy certain services on a manual (blind)
or outsourced basis. These choices lead to lost opportunities to understand customers
and build valuable relationships. Some of these include email notification of
progress, heavily staffed call-centers, blind returns and credit policies, free
shipping. (B.S., Acton, Massachusetts, USA) ***
Fulfillment
and customer service are critical to retaining customers and growing an e-commerce
site. You may get a customer to buy once from you, but if you are slow in fulfilling
the order or you don't respond immediately to customer service requests, then
that customer will not return. The switching cost for shopping at a different
site is zero, or much closer to zero than the cost of finding another store in
the brick and mortar world. E-commerce is a new way of doing business, but it
is still a personal experience for buyers. If the shopping experience is bad,
then the customer will not return. Note these differentiators
are what make commerce successful, not just e-commerce: faster response to email,
faster problem resolution, no hassle returns/exchanges/refunds, easy access to
a live person for problem resolution, on time delivery of the right product. (M.P.,
Scottsdale, Arizona, USA) ***
Our company is very
customer service focused. We have made customer service a #1 priority for a long
time. Now we're facing the issue of online customer service. Tosses a wrench in
the traditional wheel of the world of customer service. Customers are always ready
for someone to serve them better. Getting your customer buy in may be easier than
getting the buy-in and cooperation from a staff of representatives who have been
servicing customers for decades. I've heard comments like, "It just won't
be personal anymore" over and over again. We're facing this issue today like
so many other companies. I'll be interested in any feedback anyone has regarding
this issue and how they are making it work. (S.H., Mount Vernon, New York, USA) ***
Customer service is critical. It is as important as any other component of the
customer experience. Customer service and fulfillment are key points of differentiation
in the customer's mind, especially as it relates to repeat business. Those businesses
who take care of the customer on the back end will be rewarded with repeat business,
those who do not will find customers extremely reluctant to repeat, regardless
if performance has improved. Activities companies can perform in this area include:
- Pre-order: Satisfaction statements, policy statements, guarantees, customer
testimonials.
- Order and Post-Order : Execution, customer service functionality
on the site, timely response to customer queries.
(M.S.,
Burnsville, Minneapolis, USA) ***
Customers are most
sensitive to service. They are frustrated by voice-mail and other automated services
with too many selections. They want a most direct in and direct out once they
have transacted their business. Surfers, surf and buyers buy, we should never
loose sight of this. (L.J., Brossard, CANADA) ***
Web sites have to be easy to use. The entire customer experience has to be considered
when a customer visits your site. At our company, we would like to make that experience
as simple and pleasant as possible. We are currently including many new features
including text and voice assistant programs to help our customers once we go live.
(F.S., New York, USA) ***
Good customer service is
critical to small business success, but it's often overlooked. The order fulfillment
process must be efficient, because online shopping loses its appeal and convenience
when customers have to chase down orders or fight for refunds. It can be hard
for me as a small business owner to devote the extra time and resources that good
customer service requires, but it does pay off in the long run. Time or price
or overall satisfaction guarantees can seem costly, but I think the confidence
that they provide is worth it. (M.T., Tampa, Florida, USA) ***
Customer service is of the upmost importance. One's reputation depends on it.
Word of mouth travels about 9 times faster than other forms of advertising. Companies
that do not respond to customers' requests will fall behind those that treat every
customer with respect. (C.P., San Jose, California, USA) ***
Customer service expectations on the web have been escalated due to the high value
companies such as Amazon.com have placed on them. In the world of Internet, there
is no way to take a product back, stand at a customer support desk or replace
a product. E-commerce companies need to adapt the principles of direct marketers
in order to promote sales. They typically have return policies and money-back
guarantees displayed all over their catalogs that ensure customers of their safety.
(J.G., Johannesburg, SOUTH AFRICA) ***
Customer service
and fulfillment are the utmost key to business. They are becoming now and in future
will be the deciding factors of who wins. (K.B., San Francisco, California, USA) ***
Fulfillment and customer service are becoming a point of differentiation to a
degree. They certainly separate the "men" from the "boys"
in terms of web reselling. Most anyone can set up a web site on which you can
buy something and there are lots of third party companies that will provide the
"behind the buy button" financial processing and customer notifications.
However, only larger companies that have a significant volume of e-commerce business
can secure relationships with the major package carriers (FedEx, UPS, etc.) to
use them as distribution centers, offering next day delivery even for orders placed
very late in the day. It also requires a significant staffing commitment to provide
24-hour customer service. In my experience, you can differentiate a company who
has a significant business commitment to e-commerce by their fulfillment and service
policies. If you can't get next day shipping on orders placed after noon (or not
at all) at customer service is available only 9 - 5, you're dealing with a smaller
company or one for whom e-commerce is not a major part of their business. If you
can order up until midnight (or later) and still get your shipment the next day
and can talk to a live customer service person 24/7, you are dealing with an e-commerce
powerhouse. (P.N., San Jose, California, USA) ***
Fulfillment is a necessity if you want a customer to return regularly. Customer
service is a necessity to run a business. Sites which ignore fulfillment can be
recognized as they gradually fall out of importance. Those who neglect customer
service are instant failures. (D.A., INDIA) ***
Web
sites are differentiating themselves by adding value added services such as remembering
what the customer buys, setting up databases to remember birthdays and special
events. A personal touch, the human touch, will become more important as sites
compete for dollars. Engagement in chat rooms and special events can bring more
people to a site as well. Once, just once, I ordered something from the Smarter
Image. They send me coupons all the time for as much as $50 on their products.This
is very seductive. If I had gone to their real store, would they have done this?
I don't think so. (K.B., San Jose, California, USA) ***
Yes, these areas are becoming key points of differentiation for the referral to
friends with the same needs. No service or bad service means no further business
with the site. Companies can differentiate themselves through their reactivity
to requests, the completeness of information delivered, the efficiency of provided
help, etc. (F.D., Hayward, California, USA) ***
I
believe that these points are just beginning to become a key point of differentiation.
As more consumers start making more frequent purchases on the Web their experience
base will grow (and many will share this info with others) and sites not addressing
these areas will be actively discriminated against. (C.G., Santa Cruz, California,
USA) ***
It depends on how you view total customer
relationship management (CRM)? If you value CRM, then both fulfillment and customer
service are important and must be budgeted as part of CRM. A bad experience can
put a potential repeat customer off the producer/service provider. Since these
are the most valuable type of customer, you are killing the golden goose if you
upset them. By providing data that keeps customers informed
about their product or the service they use. For example, where the product is
in the shipping cycle? When service can be expected? What problems are known to
exist with the product and what are the work-arounds and/or corrective actions
being taken? How fast customer service (CS) responds, how knowledgeable about
the goods or service? What authority does CS have to fix the problem? All of these
can lead to positive or negative feelings towards the vendor or service provider.
There are a myriad ways of improving fulfillment and CS, but the easiest and cheapest
is to be as open and honest as possible. Don't make excuses, deal with them as
best as possible, keep customers informed, and respond quickly and with courtesy.
(R.C., Menlo Park, California, USA) ***
If a company
and its employees take ownership for the experience that is the only differentiation
that I need to make me a loyal buyer. (M.G., San Francisco, California, USA) ***
The importance is paramount to me in terms of building customer relationships.
From the consumers point of view it is an essential element of honor and trust
that needs to exist in a business relationship as much as in any other relationship.
It also guarantees repeat business for the seller as well as added business, since
in most cases people will spread the word if a company provides outstanding or
even just reliable service. There is a saying that I love, by Steven Pinker who
is a cognitive scientist. I've changed it around a little to fit into the business
theme that we are discussing. 'Customer Service is the Jewel in the Crown of Business.'
In this point in time I believe more than ever before,
fulfillment and customer service are key points of differentiation in today's
business strategies. Reasons are that the competition is at such an intense level.
There are many companies who offer great products at great prices. The way your
company will be remembered by a customer is how he was dealt with. How much hassle
he underwent or on the other hand how easy it was to get his products. Of course
the greatest tribute and assurance for future business success is the word of
mouth recommendation of people who had a wonderful experience dealing with your
company.(G.S., San Jose, California, USA) ***
I like
to know that there is a person out there that I can call for help. If I need assistance,
I really appreciate a friendly customer service rep. Their attitude sticks in
my mind for the next time I'm shopping online. If I get my order on time-great,
if not- I probably won't use the service again. (NP - Portland, Oregon, USA) ***
Fulfillment and customer service via the web is not simply putting CGI scripts
in front of existing backend systems. Customer service reps in most companies
have months of training in their products and services. They know how to use the
system…Those that do it well will prosper. Those that do it poorly will die.
(G., Silicon Valley, California, USA) ***
The importance
of customer should be ranked in the top 3 of requirements for a site.
- Visually appealing
- Easy to locate and identify product
- Easy
to place an order
- Easy to locate support if issues arise
In
the end, the sites that promote the best customer experiences will be the sites
that will continue to be selected, assuming the brand they offer is needed. (A.L.,
Fremont, California, USA) ***
It seems that traditionally
customer service has been seen as a separate entity to the sale items in question.
Going back a bit in time, the vendor competed using the notion of a superior product.
More recently, the buzz seems to be about value added service for your products.
This tends to indicate a shift in focus away from the product towards the customer.
The difference in nature and cost of a particular product as opposed to an opposition
product seems to be becoming increasingly smaller. Vendors are therefore looking
for different avenues to compete in. With this in mind, the rise in focus on customer
support seems a natural progression. This new battleground is obviously important,
but I think the focus is still not quite right. Web vendors should see customer
services as the product. The value added service, promptness, flexibility and
fulfillment of the order IS actually what the vendor is selling. Changing focus
to place more emphasis on this, instead of lumping value added services etc. onto
the end of a marketing pitch aimed at the product will ensure an effective edge
in the marketplace. (G.C., Cape Town, SOUTH AFRICA) ***
What I have found is that many e commerce enabled etailers or retailers at first
outsource services from web hosting, back office, fulfillment etc. As their business
grows they may take some of these processes in-house. You
have one 1st chance to keep a customer loyal. If the fulfillment systems are not
in place, your customers will be disappointed and will not return. A quirky website
may be overlooked but slow incompetent delivery is inexcusable. (M.K., Baldwin,
New York, USA) ***
Fulfillment on the web seems strong,
but I have seen a lack of customer service. I do get irritated by this fact. With
brick and mortar stores as well, oftentimes you see strong customer service from
their 1-800 lines but when you need to call customer service, you hear things
like, "well, I don't really know how to look those orders up. Let me go upstairs
and find out." (L.B., Silicon Valley, California, USA) ***
- Define common e-commerce strategy
- Describe phases in development cycle
of e-commerce
- What are the factors facilitating operation of e-commerce:
- Supply chain management
- Customer relationship management
- Product
development and inventory
- Security
- Availability
- Optimizing
website for speed and efficiency (J.W.)
***
I had a recent encounter with an order on Barnes and Noble. com, where I placed
an order for several books. Neither of the books I ordered over three weeks ago
have yet to arrive and I was told that it would 3-6 working days. I have never
had this problem with Amazon.com! I will never order from BN.com again! (K.C.,
Atlanta, Georgia, USA) ***
The number one goal is
to ship within 24 hours. I haven't seen sites differentiate themselves through
customer service and fulfillment, but maybe folks like Gomez will report on these
stats. (B.N., Dedham, Massachusetts, USA) ***
I've
seen fulfillment as an order qualifier - it eliminates some vendors but does not
seem to serve as differentiation.The bar keeps getting higher in terms of expectations
on ease of use and email confirmations of order and shipment but I have not seen
sites where it moved much beyond this. (S.A., Menlo Park, California, USA)
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