Out-Law News 2 min. read
Site glitches blamed for abandoned shopping carts on the web
23 Sep 2008, 9:03 am
Almost nine out of ten people who try to buy online run into problems, an annual customer survey has found. The research found that those problems can seriously affect businesses, as 41% of customers would abandon transactions if they came across a problem.
Tealeaf, a maker of customer experience and behavioural analysis software, has published its fourth annual survey of online customers' experiences. It has found that though buying online is many people's preferred way of doing business, almost all still encounter problems.
The research found that 87% of the 2,000 people surveyed who buy online have experienced problems with online purchases, and four in ten of those abandon transactions or move to a competitor when problems flare up.
"The Web has changed business; companies both large and small compete for the same customers. Now, competition is just a click away and customer expectations continue to grow," said Tealeaf chief executive Rebecca Ward. "Businesses must take definitive steps to differentiate themselves by understanding and improving their customers' site experiences, and equipping their contact centers to truly meet the needs of online customers."
The research found that consumers are keen to conduct transactions online. It said that 35% of all adults who use the internet would rather do business online than face to face. The challenge for companies, it said, was to meet those customers' expectations.
"22% of online adults who have conducted an online transaction in the past year expect even better customer service online than when shopping in-person," said a Tealeaf statement.
Online retail has long been plagued by logistical and technical difficulties, but consumers are now intolerant of companies' inability to make systems work. Tealeaf's research found that 84% of web users see no reason why web retail systems shouldn't work first time. "Most sites are not meeting those expectations," it said.
Retailers have attempted to find solutions to some of the technical and logistical problems facing online retailers. One problem, particularly for working people, is how to take delivery of items that will not fit through a letterbox.
The UK's Interactive Media in Retail Group (IMRG) launched a scheme in 2005 called Internet Delivery is Safe (IDIS), which aimed to make clear the responsibilities of an online shop and of online shoppers.
Retailers who signed up to the scheme promised to publish clear delivery information and pricing and a commitment to deliver at the agreed time before any purchase was made. It also mandated members to offer convenient delivery options and a clear returns policy.
Despite such logistical problems the use of the internet for consumer transactions is still growing. The IMRG said that the online retail market is 15.1% bigger now than it was a year ago, though figures for August showed a slowdown from activity in July of this year. Its figures were produced by consulting firm Capgemini.
"Whilst year on year growth continues to be strong at around 15% it does reflect the market’s progression up the maturity curve and away from the 60%+ growth rates we’ve seen in the past," said Mike Petevinos, head of consulting for retail at Capgemini UK. "It is important to acknowledge the inevitable impact of faltering consumer confidence, with shoppers opting for lower cost accessories in preference to big ticket items.”
