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News Stories Thursday, October 31, 2002   
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Failed search drives customers to higher-priced options, study says


Good site search is expensive but worth it, says a report out this month from consultants The E-tailing Group Inc. In a study of 25 merchants sites across six categories, the Chicago-based E-tailing Group ranked search effectiveness a 2.3 out of a possible 5. And researchers found in some instances that using live chat at a site or even calling the customer service phone number yielded faster results than poorly executed searches. “It all comes down to using the path of least resistance,” says Lauren Freedman, president of The E-tailing Group. “Customers will either abandon the site when they don’t get results, or they’ll use other options that are a lot less cost effective for the merchant.”

The E-tailing Group’s study found that live chat answered a question in an average of 2.67 minutes while a phone call was even speedier at 1.67 minutes. “Search is up against a lot of entrenched consumer behavior,” Freedman says. “People know how to make a phone call to get information.” The study was underwritten by iPhrase Technologies, a search vendor.

While it can be expensive to implement, search is a long-term investment, she says. “Well executed search can be the beginning of a best-of-class shopping experience,” she says. “This is an investment and a very critical one.”

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