FutureNow’s “2007 Retail Customer Experience Study” surveyed 300 online retailers to find out the state of the industry. Their key findings:

• 74% offered estimated delivery times
• 58% correctly answered an e-mail question within 24 hours
• 52% of retailers had physical stores; only 10% of all retailers offered in-store pickup of orders
• 43% offered free shipping
• 42% provided shipping costs early in the checkout process
• Only 39% offered any information on the product page regarding in-stock availability
• 35% had a checkout process with more than four steps
• 33% offered customer reviews

Key takeaway: you can differentiate just by getting the basics right. Pretty much every store-in-a-box e-commerce vendor can give you a site that handles transactions moderately well. Most of those “starter” systems even offer automated shipping costs, short checkouts, and estimated delivery times. So you can start a brand new online store with very little investment and ALREADY be ahead of the pack.

For the retailer looking to excel, the steps involved aren’t rocket science. Younger and/or more innovative online stores have a tremendous opportunity to lead the market just by following best practices. As the industry consolidates over the next decade, the innovators will be well-positioned to take market share from the “me too” stores that don’t invest in customer experience.

FutureNow suggests the following steps for retailers looking to improve their online operations:

• In product presentations, provide:
  • Better and more enticing product descriptions.
  • Better-quality product images.
  • Multiple images.
  • Customer reviews.

• For fulfillment options, offer:
  • Product availability.
  • Easily visible return policies, shipping policies, and guarantees.
  • Customer-friendly and easy-to-read and -understand return/exchange policies.
  • Gift options.

• For checkout options, include:
  • Multiple payment options (e.g., by check, PayPal, etc.).
  • Estimated delivery times, and show in-stock availability for items.
  • In-store pickup where physical stores exist.
  • A progress indicator in the checkout process.
  • Simpler or fewer steps or both in the checkout process.
  • Third-party seals and security assurances.

• For customer service options, implement:
  • Faster and more accurate replies to customer e-mail inquiries.
  • Chat options.
  • A visible phone number for questions and problems.

Filed under: ecommerce, marketing, online retail, strategy