The Online Customer

THE ONLINE CUSTOMER WHY SUPPORT SH OULD MATTER TO ONLINE RETAILERS Online retail is now taking an increasing amount of business from brick-and-mortar retail stores. But what happens when those customers have questions? As it turns out, online retailers have a lot to lose from not beefing up their customer support. We take a closer look below. RETAIL THERAPY ONLINE RETAIL DOMINANCE With the steady growth of online retail sales in the past few years, it's no surprise that companies are calling more attention to better customer service. ONLINE RETAIL SALES GROWTH* Spending in billions YOY % change +12% $40B $38 +10% +11% 0% $33.9 $31.2 $31.1 +17% $30B $27.9 $20B Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 "Excluding auctions, auto, travel WHY SUPPORT MATTERS Studies have shown that if online retailers put a little more effort into customer service, it could offer them a bump in sales. 7.8 percent of abandoned online transactions 31% 7.8% I 31 percent of customers purchase more from could have been converted into sales with retailers after a positive shopping experience. better service. THE NEED FOR BETTER SERVICE DROP IN CUSTOMER SERVICE FOR ONLINE RETAIL Although it seems that the online retail industry is doing well, the customers are not as happy as they can be. INTERNET RETAIL CUSTOMER SATISFACTION 2009 2010 83 ш Customer satisfaction with online retail fell 3.6 percent. Despite the fall in online 80 retail, it still remains much higher than in-store shopping satisfaction. HOW IMPORTANT IS GOOD SERVICE? It seems that the more you shop, the more you will care about customer service. CUSTOMERS WHO DEEM CUSTOMER SERVICE EXTREMELY OR VERY IMPORTANT 53% 45% 40% CUSTOMERS WHO SHOP ONLINE CUSTOMERS WHO SHOP CUSTOMERS WHO SHOP ONLINE MORE THAN ONCE A MONTH ONLINE ONCE A MONTH EVERY FOUR TO SIX MONTHS WHAT YOUR CUSTOMERS LOOK FOR A CUSTOMER'S SUPPORT WISH LIST BREAKING DOWN THE MEDIUMS OF COMMUNICATION Customer service can cover a broad range of media, but online Because customers are already online, it comes as no surprise that email is the shoppers have specific wants when it comes to support. preferred method of customer support for online retail. PREFERRED ONLINE RETAIL CUSTOMER SUPPORT METHODS The ability to track shipments with a computer or mobile device EMAIL .......... 58% Online customer service chat or instant messaging PHONE ............ 22% Videos that explain installation or assembly LIVE CHAT 20% SPOTLIGHT ON LIVE CHAT Live "click-to-chat" options are a popular offering for many online retailers. We take a closer look at who prefers this option. THOSE WHO PREFER LIVE CHAT FOR ONLINE RETAIL SUPPORT: Men Women Under $1,00O Over $1,000 59% 41% 60% 40% GENDER ANNUAL ONLINE EXPENDITURE zendesk SOURCES: FORRESTER, COMSCORE, ATG, THE E-TAILING GROUP, INTERNETRETAILER.COM. AMERICAN CUSTOMER SATISFACTION INDEX, LIMELIGHT NETWORKS, DATAMONITOR, HARRIS INTERACTIVE LOVE YOUR HELP DESK