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Consumers Remain Intolerant toward Ecommerce Site Failures

For the third consecutive year, about nine out of 10 consumers conducting transactions online (87 percent) say they have experienced problems - and 42 percent of those have switched to a competitor or abandoned the transaction entirely, according to a Tealeaf survey conducted by Harris Interactive, reports MarketingCharts.

Another 52 percent who have experienced bad customer service from a company’s contact center, following an online issue, have completely stopped doing business with the company, according to the findings.

tealeaf-website-transaction-abandonment-customer-service-contact-2005-2007.jpg

As e-commerce continues to grow - Forrester Research estimates 2007 online retail sales at $157.4 billion and expects sales to reach $271.6 billion (or 9 percent of retail sales overall) by 2011 - so does the risk of leaving more money on the table.

“We’re in a ‘perfect storm’ as users’ dependency on ecommerce grows and their patience for bad online experiences wears thin,” said Rebecca Ward, CEO, Tealeaf. “More than a decade into ecommerce, we’re increasingly savvy online consumers, and we’re no longer willing to put up with experiences that do not live up to our expectations.”

Other findings from the study:

  • Failed transactions also have a significant impact on those consumers who do not immediately switch but still try to buy from a company after experiencing them, according to the study:
    • 53 percent of online users with issues would contact customer service.
    • Of those, almost half (49 percent) did not have their issue resolved, and of those:
      • 68 percent did not feel that the service agent was knowledgeable about the website.
      • 70 percent did not believe the agent understood their particular issue.
  • Bad customer service received from contact centers led to a second wave of abandonment, resulting in major business impacts:
    • About half (52 percent) of those who experienced bad customer service from a company’s contact center decided to stop doing business with the company entirely.
    • A full 76 percent stopped doing business entirely, decreased the amount of business they do with the company, or lodged a complaint with the Better Business Bureau.
Related topics: Research, E-Commerce, Interactive...   

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