Consumers Intolerant Of Ecommerce Failures

    September 17, 2007

Around 87 percent of consumers conducting transactions online have experienced problems according to a survey commissioned by Tealeaf and conducted by Harris Interactive.

Consumers Intolerant Of Ecommerce Failures
Consumers Intolerant Of Ecommerce Failures

The survey found that 42 percent of those who have had problems when conducting online transactions have switched to a competitor or abandoned the transaction all together. Another 52 percent, who experienced bad customer service from a company, have stopped doing business with the company.

Ecommerce continues to grow and Forrester Research estimates 2007 online retail sales will reach $157 billion and projects that number to grow to $271 billion by 2011. But the growth masks underlying issues.

"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."

"Companies doing business online must pay attention to their customers’ experiences and help them to succeed, or risk losing them entirely. The only way to understand issues, improve conversion rates and better serve customers is to have visibility into everything that happens on your online channel."

Bad customer service from companies led to a second wave of abandonment with 52 percent of consumers ending their business relationship with a company entirely and another 72 percent who stopped doing business entirely or decreased the amount of business they do with a company, or filed a complaint with the Better Business Bureau.

"The risk of abandonment is escalating not only after initial online transaction problems, but also for those who try to remain loyal, because contact centers are fundamentally ill-equipped because they lack the visibility to adequately address the concerns of website customers," said Ward.