So you’ve set up a nice E-commerce web site – or may be a pure-play online firm only. Here’s the problem. Are your customers interested in you because you’re cheap and therefore customer service is an unnecessary ‘bricks’ type overhead – or just as important in cyberspace or wetspace/the real world?
This was one of the fascinating questions some online retail veterans grappled with at a recent roundtable event in Manchester organised by UKFast, a hosting provider. And their answer? Price may drive first-time sales – but it’s customer service that promotes loyalty and repeat custom, online as much as on the High Street.
Thus Dale Hicks, founder of online industry networking business, The Fashion Network, affirmed that it’s cost that’s the biggest factor for a visitor to your URL: "Now it’s so easy for customers to go elsewhere. On the Web, they just have to click a button, not walk another few miles. So online retailers are competing on price quite a lot."
But Glen Berd, founder of lovethoseshoes.com and Paul Walker, MD of craft materials retailer Fred Aldous, are convinced price is a secondary factor for online shoppers; "It’s loyalty that brings customers back, not price," in Berd’s view.
"A lot of our customers are just discovering the Internet and getting to grips with it," added Walker. "From a customer service perspective, we make sure they feel like they have ownership of the business. It pays off. I have customers coming to us asking if we can stock a product that they could easily get elsewhere – but they would prefer to buy from us because of the extras that we offer."
Participants in the roundtable concluded that honesty, consistency, developing a one-on-one relationship and, most importantly, promoting a community feel amongst customers are the key aspects of providing good customer service.
In the words of Jessica Lowe, press and marketing manager for Harvey Nichols Manchester, "Customer service is any interaction with the customer – active or passive. For us that means the music in store, the decor, our staff… it’s about making the customer feel happy. Our presence online is just an extension of that, giving them all the information they want or need. And we like to think our website is just as beautiful as our store."
Customer service could be neglected as firms grow and agreed bosses should empower their staff with the authority to make executive decisions to handle complaints and keep customers happy, warned the group, with Rob Galkoff, founder of Wilmslow-based The Business Consultants, warning of the dangers of companies losing sight of their customers’ needs.
"Customers like the small company approach. It’s too easy for a firm to grow quickly and shift focus from customer service and a one-on-one relationship to KPIs and call times. Management need to invest in and empower people at the coalface, or they will see sales fall," Galkoff said.
There seems to be a war story or two buried under the careful chat. So it’s worth taking note of what’s been probably hard-won experience here and thinking about the customer service aspect of your online efforts as much as your price competition angle and user experience.
