I was up late last night and caught an old classic..
“Miracle on 34th Street”. The Macy’s vs Gimbles fierce
competition and accidental PR coup spurred by Khris Kringle’s commitment to
customer service made me realize that ecommerce needs to take a lesson from the
past.
For years, the question in customer’s minds was “should I
buy online”. Security was the very real concern. McAfee and Norton
tackled the problem with secure connections and hacker protection. It is
difficult to find an online store that does not display a security badge.
At ConversionIQ we regularly test
the influence of trust marks and there is no doubt that messaging
security improves people’s confidence and willingness to buy.
One of our clients recently displayed a new trust mark from StellaService. Knowing how
important customer confidence is in ecommerce we decided to measure the
influence of messaging quality customer service. We were shocked to
discover a 78% increase in conversion rate and 58% increase in revenue per
visitor for an online fishing tackle supplier. In retrospect it makes
sense. Online shoppers have become much more sophisticated and their
online shopping options have exploded. The question is no longer “should
I shop online” but rather “who should I buy from”. Like in the classic
retail battles of the past… quality customer service makes a difference.
We reached out to this little known company called
StellaService to share the news the influence of their service mark. It
turns out they saw this trend coming and have been quietly rating the customer
service of thousands of online stores. They share their data with the
online businesses to help them measure and maintain top quality customer
service. They award a service mark that allows companies to communicate
their commitment to service to their customers on-site.
Over the past few months Stella has asked us to test the
service mark for several of the businesses they have rated. Many of the
businesses are proud of their customer service and jump at the opportunity to
optimize their onsite service messaging. I was surprised to come across a
few companies who were resistant. A common refrain was “we have enough
trust marks” or “we are a well known brand we do not need to display trust
marks”.
Trust mark overload is a real problem and most sites should
consider to reduce clutter and focus on a few strong confidence elements.
For those that feel there brand is all they need to compete… I caution them to
realize that the gains being made by smaller online businesses is coming at
their expense. Businesses that are focused on providing great selection
and service online will continue to take market share. Those smaller
online businesses are growing by overcoming shoppers concerns and messaging their
commitment to security and service. Test after test proves it.
Well known brands should be focused on raising the service
bar and messaging their superior online service to maintain their market
position. Multi-channel brick and mortar business have a distinct
customer service advantage. Their customers have the option to browse
online and buy and return locally, if necessary. Reminding their online
visitors that they have superior service will help to drive both online and
in-store sales. It is surprising that they are the most resistant to get
onboard with the growing trend to measure, maintain and “message” quality
customer service online.
Customer service is going to influence online buying
behavior for the foreseeable future and Stella seems to be in the right place
at the right time. Smart money seems to agree based the announcement I
saw today: http://www.businessinsider.com/stellaservice-raises-15-million-series-b-round-2013-2.
This little company on 20th street in New York will likely play an important role in this growing trend among online retailers to focus on providing quality customer service.
