Web-watchers say e-tailing will come of age this Christmas. Yet,
they said the same last year. The outcome was a litany of failures
and problems. Are firms really ready this year? What needs to be
done between now and 21 December? Assuming it’s going to be too
late to avoid egg on your face.
With benefits of hindsight, it is easy to see where the problems
were. Too many sites were technically complex and put potential
customers off before they bought goods. They either went to a
competitor or gave up on e-purchasing. Too few sites offered
reassurance about security. There was an atmosphere of fear,
uncertainty and doubt about these issues. The internal processes in
many companies were not tuned in to respond efficiently to Web
orders. Often, it took longer to process a Web order than a
telephone or mail one. There were too many problems with fulfilment
and delivery, so many Web orders arrived too late for
Christmas.
Darryl Bowman, director of marketing of search engine company
Hoojit, says e-tailers went too early down the new media route.
“But they disastrously neglected crucial issues which would make
e-tailing successful,” he adds.
Bowman is unconvinced this year’s Christmas e-shopping will be
very different. He says, “Online shopping has not fulfilled
predictions. The reason is because broadband in Europe is a long
way from the level in the US. There are still problems with complex
sites, fears about security, poor order tracking and unreliable
fulfilment and delivery.”
Despite directory services like Hoojit.com, customers have to
battle through a large number of sites to end up with a product.
Bowman says, “We put products rather than suppliers or stores at
the heart of a search. We can offer customers a wider range of
goods.” Customer awareness and knowledge has come a long way during
the past year. Now, most know what they want and how they can get
it. They also know what they can expect from a Web purchase. Like
last year, Christmas 2000 offers an opportunity to tempt those who
have not yet made a Net purchase into trying.
The question is whether there will be more general
disappointment. This year, no retailer can ignore the Internet as a
potential route to market and sales channels, but are they prepared
to avoid disasters, consequential bad press and damage to
reputation?
Tony Budd, European sales director of Tonic Software, suggests
e-tailers need to understand user experience. This is the
difference between first-time surfers and experienced return
purchasers. “In the old days, there was always someone to act as a
buffer between a company and its systems, shielding customers from
worst impressions. Now when customers deal with the Web site, they
have first-hand experience of the firm’s competence and
performance,” he says.
According to Arnold Pijpers, vice-president of Packeteer,
customers need a Web site where they can move quickly from pages.
“The process of shopping has to be straightforward and fun.
Reliability and online security must be implicit,” he states.
“If Christmas 2000 is to be an e-success, existing e-tailers and
new converts must take basic issues and last year’s problems
seriously. Otherwise it won’t be a merry e-Christmas again,”
Pijpers adds.
Budd points out a failure or bad experience will not result in
one lost customer. Many more could be lost if word gets around.
“The retailer does not necessarily know when bad things happen like
when errors are experienced or performance is bad. They need
statistics and feedback about performance, alarms and alerts. This
is when response times slow or errors occur.”
One way to ensure success, says Pijpers, is to system test.
“Although it is impossible to predict traffic volume, it is
possible to ensure you have a device which sits unnoticed on the
network. It will consistently and constantly monitor and manage
online traffic. This is so bottlenecks and problems can be dealt
with immediately. System and process performance must be consistent
and guaranteed,” he adds.
Integration between front- and back-office is still incomplete
in many firms offering e-tail services. But Terry Wilcox, managing
director of deliver-e, says rather than worry about integration so
close to Christmas, it is better to ensure processes are in place
so orders are dispatched promptly.
“You also need processes to query and deal with unusual orders.
Did that customer really place an order for 100 fluffy pink
elephants? Managing 15% of orders likely to have queries is equally
as important as processing the 85% that won’t have a glitch through
the system. Eliminating human involvement should not be the primary
objective of online sales,” he says.
Many retailers are still unsure of the reliability and
robustness of their Web sites and back-office processes. The
problem is often the front-end is designed by internal techies who
know what they are trying to achieve. But they lack sensitivity to
the needs of e-customers. Giving first-time Internet users
functionality is more reminiscent of internal IT systems. It is a
mistake.
It is also important to manage customers’ expectations so they
know when delivery can be realistically expected. “If it is going
to be 10 days, tell them 10,” says Wilcox. “Buying online is swift
and easy. That doesn’t mean the goods will arrive on the doorstep
any quicker than when ordered by other means.
“It is important to set customers’ expectations regarding
delivery timescales. Like the post office, warn of last buying
dates for Christmas delivery.” As Nick Turner, product marketing
manager of LIS, points out, many people who use the Internet to buy
for Christmas are busy working people. “So don’t try to deliver
during conventional office hours. Use a delivery service which is
flexible and reliable.”
A whole purchasing experience can stand or fall according to
reality. “It’s no good using a delivery service which insists on
people being at home between nine to five. Or asking them to stay
at home for half a day and not turn up,” Turner says. “If evening
deliveries are not viable, workplace deliveries should be possible.
Even a neighbour’s address given. All this should be included in
the original order process.”
Finally, have an efficient system for managing returns. “If
someone orders something for Christmas and it is not right when it
arrives, you should be able to get the return order delivered for
Christmas,” explains Turner. “Customer expectations extend to
having goods collected. If they are not right, a successful
e-tailer must have an efficient ‘reverse logistics’ system to
cope.”
E-tailing tips for Christmas
Do:
- Prepare for Christmas in advance, with plenty of site and
process testing to handle predicted volume. Make sure fulfilment
and delivery systems are in place
- Use measures to speed up your Web site
- Use tools to establish most visited site and transaction pages,
giving them priority on the network
- Have systems alerting you if the site crashes, hangs or
attempts have been made to hack it
- Respond fast to orders, acknowledging them and assigning an
order number by immediate e-mail. Keep customers informed of
progress
- Make sure your site is designed to be friendly to shoppers with
no distracting services promoted
- Offer customers quick and easy access to the catalogue and
shopping trolley, and back to catalogue if that’s what they want.
The search mechanism must be simple and quick
- Be honest with customers. Have lists of options with
comparative prices, features and benefits
- Clearly state terms and conditions. Most importantly, realistic
delivery dates. Ensure the customer is e-mailed an order number
when logging off and they can track the order
automatically
- Make sure you know how the site will respond when demand is
high, and at what point failure might occur
Don’t:
- Try to substitute gimmicks and discounts for quality Web site
performance. People will not be fooled
- Make the Web site too complex. Avoid three dimensional images
or video unless the Web site server can detect the customers’
system. Be sure it can cope properly
- Make promises you can’t keep
- Compete with other sites for markets not core to
yours
- Fail to deliver on time. If a delay is unavoidable, keep
customers informed
- Accept any orders for Christmas goods if you know you can’t
deliver the goods in time
- Wait until customers tell you they have problems before
rectifying weaknesses in the site and processes
- Anticipate the number of e-customers. There will be more this
year than last. Whatever number you thought of, double it
- Significantly increase the number of questions when in
transaction. Asking too many personal details from customers is
irritating