Retailers Need to Step Up Online Shopping Experiences for Consumers

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:

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.

Consumers Know They Are Being Tracked

According to a recently released study by consumer privacy organization TRUSTe and global market insight
and information group TNS, consumers generally know that their internet activities are being tracked for purposes of targeting
advertising.

Are they OK with it? Not really. They study also revealed a high level of concern associated with that tracking,
even when it isn’t associated with personally identifiable information.

According to a recently released study by consumer privacy organization TRUSTe and global market insight
and information group TNS, consumers generally know that their internet activities are being tracked for purposes of targeting
advertising.

Are they OK with it? Not really. They study also revealed a high level of concern associated with that tracking,
even when it isn’t associated with personally identifiable information.

Behavioral targeting, which enables marketers to deliver customized experiences and improved marketing
metrics, also runs up against consumer privacy concerns and calls for greater
transparency around emerging tracking and targeting techniques.

Based on
the results of the survey, lack of transparency may factor into privacy
concerns. In fact, 71 percent of online consumers are aware that their browsing
information may be collected by a third party for advertising purposes, but
only 40 percent are familiar with the term “behavioral targeting.” In addition, 57
percent of respondents said they are not comfortable with advertisers using
that browsing history to serve relevant ads, even when that information
cannot be tied to their names or any other personal information.

Meanwhile, a majority (91 percent) of respondents expressed willingness
to take necessary steps to assure increased privacy online when presented
with the tools to control their internet tracking and advertising
experience, and this, accoridng to TRUSTe and TNS, suggests a need for added education, transparency and choices
for behavioral targeting. Nearly two-thirds (64 percent) would choose to
see online ads only from online stores and brands that they know and trust
and 44 percent of respondents would click buttons or icons to make that
happen.

To the contrary, a similar proportion of consumers (42 percent) said they
would sign up for an online registry to ensure that advertisers are not
able to track browsing behaviors, even if it meant that they would receive
more ads that are less relevant to their interests.

What these results boil down to is that consumers say they want more relevant advertising, but don’t want
to be tracked in order to get it.

What is the key takeaway here? Transparency, transparency, transparency. Consumers today are more sophisticated and educated than ever before. They understand advertising, and in many cases, respond to it and even enjoy it. So don’t take chances–be a trustworthy and transparent company.