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Jun 17, 2010

Poor Customer Service Will Still Drive Away Trade, No Matter How Good The Bargains


The recession has created a new generation of internet-savvy consumers, who are using the web to constantly chase bargains and buy an ever-widening range of products.

That's great for retailers if they offer value - and many retailers in the sector are investing in their online market place to take advantage of this.

But in the rush to improve sales figures it is easy to forget investment in other areas of your online presence - customer service being a prime example.  I saw the first online order arrive with Littlewoods 10 years ago and have seen a dramatic change in customer expectations from online retail sites.

What is clear is that it doesn't matter how much value for money sites offer their online customers, if they neglect customer service, consumers will still go elsewhere.  Once people leave a brand, or stop going to an online store after a bad experience, they will develop an online loyalty elsewhere and they won't come back.

The current economic climate is exactly the right time to evolve your site to focus more on your customers and, for existing online stores, focus on getting it right and improving your service.

Get it wrong and the cost can be heavy - a mid-sized retail chain could expect 100,000 hits a week on a non-transactional site, equating to £4 million in sales across a full year of £1 million during the busy Christmas period alone.

Up to 90% of the increase in fashion retail-related traffic on internet search engines has been driven by value searches, whether that is for discount codes, vouchers, or just plain bargain hunting.  And 89 per cent of online grocery shoppers now expect special offers as a standard part of their shopping experience.

However, the quest for value for money and the desire to buy, and not just browse, online means online retailers have to work even harder to secure custom.  Getting it right can be simple and doesn't have to have massive cost implications.

This could involve, maybe, providing credit options that you don't already provide, helping people afford something that they need.  Many stores and brands don't realise there are ways to start, which are cost effective and get you into the market place fast.

Steve Goodheart