Set your sites higher

The impact of online customer interactions has transformed certain industries already

While many of its supporters insist e-commerce has come of age as cost-conscious consumers turn to the web for bargains, customer behaviour gives the lie to those boasts. A recent study by Redshift Research shows 82 per cent of online shoppers still abandon their electronic shopping baskets during the sales process.

The Redshift research, carried out in conjunction with online content optimisation experts Maxymiser, also highlighted that marketers and consumers alike were unable to identify well-performing web content and differentiate between what makes a good e-commerce web site and what makes a bad one. Businesses need to wake up to the missed opportunities.

With e-commerce and a corporate web presence now firmly at the forefront of enterprise strategy, organisations are looking to capture the power of the internet to grow their company profile, create new products and services, and expand into new markets.

Matt Carter, director of online gaming company Betfair’s advanced technology lab, believes that the proliferation of high-speed broadband and the expansion of mobile connectivity is broadening and increasing the potential customer base.

“Over the past 10 years the online market has matured as a commercial channel,” he says. “Back in 1999 e-commerce was a bit of a toy for most companies; now, if you’re a serious business, it’s unlikely that you don’t have an online presence. There is a lot more internet e-commerce technology around today –­ technology that is built specifically for the internet, rather than existing technologies that are trying to adapt to internet use.”

E-commerce has developed rapidly from the “brochureware” of the early days. No longer just a place to park the corporate profile and contact details, today’s e-commerce site has the potential to open additional dialogues and interactions with customers. New technologies, such as Web 2.0, social networking and complex event processing offer the chance to raise e-commerce to a core enterprise activity.

Richard Rankin, e-commerce manager at tyre retailer Blackcircles.com, believes that Web 2.0 technologies provide an unparalleled chance for organisations to interact directly with customers.

“With Web 2.0, consumers have access to feedback and opinion not only about the product itself, but also the company they will be dealing with. It has allowed the development of new online marketing channels, such as online affiliations and affinity partnerships, search engine marketing and search engine optimisation, allowing us to develop cost-effective marketing strategies promoting Blackcircles.com to a wide base of customers online,” he says. “Previously we would have to rely on more expensive forms of advertising such as newspaper and magazine ads.”

The impact of online customer interactions has transformed certain industries already. “In the gambling market, online casinos have become as important as their bricks-and-mortar cousins. E-commerce can extend sales geography and lower overheads, while providing a useful route to managing customer relations and expectations. It has the ability to allow companies to be more responsive to sudden changes in the market,” says Jonathan Strock, head of gaming and compliance at virtual casino LeCroupier.com.

In harsh economic times, some companies are looking to drive sales through discounted offers on their web sites. However, the real power of e-commerce lies in opening up new dialogues and channels of communication that augment the relationships that organisations already enjoy with their customers and suppliers. It is from this enhanced dialogue and increased customer satisfaction that new products, services and markets will grow, rather than from poorly designed and targeted sales offers, says Strock.

Continually asking for and receiving feedback from customers and suppliers allows and encourages companies to improve their business and practices. And it is astonishing exactly how much information customers are prepared to give companies to help them improve their service and products ­ – this can be turned into a real benefit for businesses that are prepared to listen.

“While online offerings must face the cost of technical investment, customer support, employee training and marketing overall, in business terms, they are far more cost-effective than traditional methods of trading,” says Strock.

One of the key advantages of e-commerce is that it can be used to quickly introduce new services to a global audience –­ although the flipside is that it also exposes businesses to massively increased competition.

And e-commerce can be a double-edged sword in other ways: providing an environment where customers can quickly compare prices, reviews and customer feedback at the click of a button, increases the pressure on organisations to react to changes in the competitive environment.

“Businesses in every sphere are struggling to differentiate themselves online by taking advantage of the latest technological developments,” says Strock. “For example, many businesses are still coming to terms with how to make the best use of social networks and to create true customer interaction with a brand.”