Why NZ e-commerce uptake is slow...or is it?

Don't be too quick to beat yourself up if your site can't handle transactions. It could be that your customers don't want to anyway and are looking for something different...

 

As with multi-channel retailers, companies that sell to other businesses have come to view the internet as one of several channels through which they may serve their customers.

But unlike consumer-facing websites that in most cases have focused upon driving online transactions, many business-to-business websites have placed a greater emphasis upon using their internet presence to complement their offline customer service channels or generate sales leads.

Indeed, eMarketer has found that several surveys show that just 20% to 25% of business-to-business websites have the ability to conduct online transactions as of the first half of 2002.

Rather than focusing upon the development of online transaction capabilities, many business-to-business companies have prioritized the adoption of pre- and post-sale customer service capabilities on their websites, after conducting lengthy discussions with key customers. Such features range from online catalogues to the provision of real-time inventory information to post-sale customer service such as online order tracking.

This is confirmed by survey data from McKinsey and Co., which has found that more business internet users place a higher value upon pre- and post-sale content than they do upon the ability to conduct online transactions

eMarketer has gone on to find that several business websites have prioritized the deployment of those customer service capabilities that permit customers to serve themselves online. This is especially true for minor queries that typically require minimal expertise from customer service representatives, such as checking product specifications or tracking an order’s shipping status.

Other survey data has shown that business buyers would like to have the ability to serve themselves online at their own convenience, rather than have to place multiple calls to customer service representatives or chase down sales reps for minor inquiries.

On the other hand, when users of business-to-business websites run into a problem online, they typically want to be able to pick up the phone and receive immediate assistance.

Indeed, developing integrated online and offline customer service is critical for businesses that want to sell online. Survey data from IMT Strategies shows that most businesses buyers continue to rely upon offline information and contacts when making online purchases

In a separate survey released in early 2002, Thomas Register found in its “Industrial Purchasing Barometer Study” that 91% of business buyers had gone to a suppliers’ website for product information, instead of using the telephone to contact their suppliers.

Furthermore, 90% of respondents to the survey expected to find a full range of product information, from pictures of the products they were looking for to shipping information and even information about product guarantees.

Four-fifths of buyers went on to say that they would give preferential treatment to those suppliers who provided comprehensive online services. Just over three-quarters of respondents, at 77% of business buyers, said that by providing detailed information online, suppliers show that they want their customers’ business.

Similar results were discovered by Jupiter Media Metrix in May of 2001, which found that 54% of business buyers would give preferential status to those suppliers who provided comprehensive customer service capabilities online.

As a result, with more business-to-business websites continuing to offer online customer service capabilities, and with business buyers becoming comfortable using the internet for a variety of business interactions, companies have been able to reduce costs and increase productivity, thanks to their greater reliance upon the internet as a customer service channel.


iStart Ed: We suggest your web channel should support all interactions with clients where possible.  The degree to which this means having a transactable site will depend entirely on individual circumstances and whether that is something clients are likely and able to utilise. 

By Steve Butler
Senior Analyst with eMarketer.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For more information about businesses’ use of the internet as a sales and customer service channel, see eMarketer’s Online Selling and eCRM report

 

 

 

 

 

 

 

 

 

 

 
















 

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