Tealeaf, a maker of customer experience and behavioural
analysis software, has published its fourth annual survey of online
customers' experiences. It has found that though buying online is
many people's preferred way of doing business, almost all still
encounter problems.
The research found that 87% of the 2,000 people surveyed who buy
online have experienced problems with online purchases, and four in
ten of those abandon transactions or move to a competitor when
problems flare up.
"The Web has changed business; companies both large and small
compete for the same customers. Now, competition is just a click
away and customer expectations continue to grow," said Tealeaf
chief executive Rebecca Ward. "Businesses must take definitive
steps to differentiate themselves by understanding and improving
their customers' site experiences, and equipping their contact
centers to truly meet the needs of online customers."
The research found that consumers are keen to conduct
transactions online. It said that 35% of all adults who use the
internet would rather do business online than face to face. The
challenge for companies, it said, was to meet those customers'
expectations.
"22% of online adults who have conducted an online transaction
in the past year expect even better customer service online than
when shopping in-person," said a Tealeaf statement.
Online retail has long been plagued by logistical and technical
difficulties, but consumers are now intolerant of companies'
inability to make systems work. Tealeaf's research found that 84%
of web users see no reason why web retail systems shouldn't work
first time. "Most sites are not meeting those expectations," it
said.
Retailers have attempted to find solutions to some of the
technical and logistical problems facing online retailers. One
problem, particularly for working people, is how to take delivery
of items that will not fit through a letterbox.
The UK's Interactive Media in Retail Group (IMRG) launched a
scheme in 2005 called Internet Delivery is Safe (IDIS), which aimed
to make clear the responsibilities of an online shop and of online
shoppers.
Retailers who signed up to the scheme promised to publish clear
delivery information and pricing and a commitment to deliver at the
agreed time before any purchase was made. It also mandated members
to offer convenient delivery options and a clear returns
policy.
Despite such logistical problems the use of the internet for
consumer transactions is still growing. The IMRG said that the
online retail market is 15.1% bigger now than it was a year ago,
though figures for August showed a slowdown from activity in July
of this year. Its figures were produced by consulting firm
Capgemini.
"Whilst year on year growth continues to be strong at around 15%
it does reflect the market’s progression up the maturity curve and
away from the 60%+ growth rates we’ve seen in the past," said Mike
Petevinos, head of consulting for retail at Capgemini UK. "It is
important to acknowledge the inevitable impact of faltering
consumer confidence, with shoppers opting for lower cost
accessories in preference to big ticket items.”
