The impact of identity theft and a fear of online shopping caused retailers to miss out on $21 billion in online sales in 2008, according to a recently released study by Javelin Strategy & Research, which was co-sponsored by eBillme and First Data.
That’s a whole lot of lost revenue, which could’ve been avoided had retailers paid a little closer attention to online customer service. Check out these other figures:
- 12 percent of fraud victims no longer shop online;
- 25 percent said the frequency of their online purchases has decreased; and
- 19 percent said they now spend less money when shopping online.
What’s more, just 45 percent of consumers are satisfied with their online shopping experiences — especially when it comes to on-time arrivals and quality expectations.
Online customer service is tricky stuff, and there’s still plenty to learn and lots of room for improvement. Here are the study’s top five motivating factors that would convince consumers to shop more frequently:
- assurance that information is being processed securely (83 percent);
- offering zero liability against identity theft (81 percent);
- stronger security at the store Web site (80 percent);
- a guarantee that the purchase will match quality expectations (80 percent); and
- a guarantee for the best price online (79 percent).
The survey also included the following findings:
- Of consumers surveyed, 39 percent believed online stores would sell their information, and 50 percent believed they would receive junk mail and spam if they shop online. To address these concerns, retailers need to clearly communicate their data privacy policies.
- 40 percent of online identity theft victims now only purchase from well-known sites such as Amazon.com. By highlighting security and customer service commitments, smaller retailers can counteract this trend.
So online retailers beware: Consumers are still very concerned about how they’re treated with regards to privacy and security. To keep customers happy — and coming back for more —make sure your practices are up-to-speed in this area.