Not a good enough show, reports say of online retailing in the UK
Two reports released this week find fault with the state of online shopping in the United Kingdom. A mystery shopper survey suggests retail sites fall short on customer service. And a government consumer protection agency, citing lack of consumer confidence in e-commerce, promises a campaign to improve security on e-retail sites.
The mystery shopper survey of 62 UK online retailers, conducted by Talisma Corp., a Bellevue, WA-based provider of customer service technology, found 45% did not respond to e-mail inquiries and that only 47% of those that did respond provided useful information. The survey found 94% of phone calls were answered, but that only 2% of the responses were personalized, such as by the agent introducing themselves or calling the customer by name. 37% of e-mail responses were personalized.
“Dissatisfied customers not only defect, but on average tell 10 people about their bad experience,” says Jon McNerney, vice president and general manager for international operations at Talisma. “The most successful online retailers will be the ones that respond to inquiries immediately with accurate information, treat every potential customer as an individual and interact with them through the channel of their choice.”
The government report from the Office of Fair Trading stated that online retailers could do more to address UK consumers’ concerns about privacy and security.
The agency said a telephone survey it conducted last year found 11% of respondents with Internet access who could shop online were put off by security fears, and that 86% had at least some concerns about security online. 79% said they were concerned about having their financial information divulged, 31% were concerned about revealing personal details, 23% were worried about product delivery and 16% had concerns about the quality of products purchased online.
At the same time, the report called e-commerce “a success story,” noting that 42% of the UK’s adult population, or 20.4 million people, had shopped online in the 12 months leading up to April 2006. The survey found 56% of Internet shoppers spent over £500 (US$1,000) and 31% over £1,000 in the 12 months ending November 2006. The survey also found that 38% of online shoppers had been shopping on the web for two years or less, and 70% for four years or less.
The agency said it plans to work with consumer groups, businesses and others to ensure businesses have easy access to information about selling online, to advise shoppers about how to protect their privacy, make sure retailers address shoppers’ most frequent concerns by providing contact details and a secure shopping environment, and improve compliance and enforcement with the aim of building consumer confidence in online shopping. The agency said more details will be announced by the end of the year.
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