E-Business Innovation: Cases and Online Readings
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Customer Relations/Service Management
Part 2: Customer Service in E-Business
In the euphoria following the use of the Internet for e-business, the general perception surfaced that if you build a Web site consumers will flock to it and shop. Within a few years, many e-businesses have come to realize that selling anything online is indeed a difficult and daunting task involving more than just establishing a Web site. In the early days of e-commerce, the key metric was Web site traffic, that is, the number of hits or visitors to the site. Today, the key metric is “conversion,” a statistic that captures the proportion of “browsers-turned-buyers.” As with traditional customers, online shoppers demand and expect a high level of customer service, especially since their loyalty is just a click away. Clearly, e-business companies must pay close attention to both their customer attraction strategy as well as their conversion and retention strategy.

Although customer service is a critical component of enticing buyers and establishing a loyal clientele, it is often neglected or mishandled. The cost of providing superior customer service can be measured easily, but the resulting revenues are not easily visible or measurable, and this is the reason why it is often neglected. However, if e-businesses are to capitalize on the opportunities the Internet provides as a marketing channel to attract and retain loyal customers, they must ensure that the quality of the experience they provide is closely aligned to what customers expect. That is, everything—from the Web site to values, strategies, tactics, processes, products, and customer support—should be consistent with, or exceed, what customers expect. However, to accomplish all this, companies must be able to develop a deep and personal relationship with their customers, and this is a complicated endeavour, as outlined in the readings in this section of the book.

Reading 1: Bort (2000)

Reading 2: Jastrow & Rosa (2000)