Saturday, March 24, 2001

Internet Retailers Need to Evaluate Webstores

Internet retailers have tried to figure out how to get Web users to come to their site, but many of these retailers need to make the shopping experience more satisfactory, according to Gartner, Inc. Internet retailers have spent much of their budget on marketing, but Gartner analysts said it is imperative that these retailers put the appropriate resources into handling fulfillment requirements effectively.

"Satisfactory fulfillment means that the customer receives the correctly ordered items in a timely way, and has an efficient and simple way to make returns if necessary," said Geri Spieler, research director for Gartner. "Online shoppers are removed from human interaction, and this separation allows them to leave the store in the click of a mouse. The challenge for a Web store is not only to engage the shopper, but to deliver an experience by which the customer can navigate and complete the shopping experience and actually achieve 'e-fulfillment' by the merchant."

More than 60 percent of potential online consumer shopping is abandoned before reaching the credit card transaction process. "A major reason for this abysmal statistic is directly related to the front-end design linking the shopping experience to the fulfillment process," Ms. Spieler said.

To create a positive shopping experience, Gartner analysts have highlighted 15 components an Internet retailer needs to address. Gartner has created a scoring system by which Internet retailers can rate themselves to see how effective or ineffective their Web channels are performing in terms of shoppability. Under this analytical framework, a Web site is rated on each of the 15 components on a scale from 1 to 10. The higher the score, the more effective a Web store is in creating a positive shopping experience. The key 15 components that need to be addressed include:

1) Location via search engine: A Web store needs to be found through various key words on multiple search engines.

2) Product/payment/pricing information: A site should give payment information early in the transaction rather than later.

3) Ad overload: Too many ads can slow down a site.

4) Intuitiveness: A site needs to have signposts on every page to help shoppers navigate to where they want to be.

5) Link sabotage: Create partnerships that benefit the site, but do not lose the customer in the process. It is better to host the information from a partner than link to its site.

6) Integration: Web merchants that have more than one selling channel should integrate all marketing campaigns, promotions, customer information and sales channels.

7) Shipping options: The Web store should link or host a multiple-shipping-option manifest on the site, allowing the customers to choose a shipping company, select a shipping option and see comparison of rates.

8) Repeat-customer benefits: Allow customers the benefit of keeping purchasing lists and reminder data, and offer benefits for repeat shoppers to keep them coming back.

9) Inventory availability: Avoid sending "out of stock" and "back order" e-mails by creating an inventory system that identifies how much inventory is available and ensures that products are not sold that cannot be fulfilled as sold.

10) Quick answers: Customers should never be more than two clicks away from any answer to a question.

11) Search window: Install a "search" window in the Web store to allow the customer to keyword search for an item or information within the Web enterprise.

12) E-mail and customer communication: Provide communication options with the customer. There are multiple ways this can be achieved such as by live chat via instant messaging, voice over IP and standard e-mail communication.

13) Globalization: Web channels must integrate the cultural, commercial and technical delivery needs of each targeted customer. There are three issues involved: content, business practices and access channels.

14) Return processing: Merchants should have a template for customers who want to return an item they bought through any one of the merchant's channels.

15) Security and privacy. Privacy issues include statements posted on the site regarding how the customer data is being protected against being seen by or sold to outside parties, and internal security is as critical as protecting the site from outside hackers.

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