InformationWeek
Defining The Business Value Of Technology
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October 16, 2000 |
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The Complete Package
With the novelty of the Internet worn off, online shoppers will expect a lot more than fast web sites and timely delivery this holiday season
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ith the temperature climbing toward 85 degrees and the late August sun browning the scenic hills nearby, not many people in Napa, Calif., were thinking about Christmas shopping. But the managers and employees of Wine.com certainly were, as they moved into a new 101,000-square-foot distribution center designed to handle 10 times last year's holiday season order volume. But just as important, the online wine seller has greatly expanded its human capital. Instead of Wine.com's usual 40 call-center representatives, it will have 250 for the holidays."Last year, customers were willing to cut us a little slack for the novelty of buying online. That's gone," says Peter Granoff, Wine.com's senior VP and general manager. "This year is really make-or-break for online merchants."
Like thousands of other companies now selling to consumers on the Web, Wine.com has been pouring in time, money, and effort all year to gear up for the holiday rush. The three major E-commerce market-research firms, Forrester Research, Gartner Group, and Jupiter Communications, predict that North American consumers will buy $9 billion to $10.7 billion worth of products online this holiday season, up as much as 100% from last year.
But volume is only part of the story. Think holiday E-commerce is all about server uptime and timely delivery? This year, that's just the price of admission. Customers' expectations for a quality Web shopping experience will reach an all-time high this gift-buying season. Online merchants need to offer additional features that shoppers can't find at the mall--as well as top-notch customer service every step of the way. Buying online just because it's new, cool, and easy is yesterday's news. The message is clear: Convenience isn't enough.
s That's why Sears, Roebuck and Co. has taught 850 store managers how to help customers research products or buy through Sears.com using in-store kiosks; why CDNow Inc. offers the ability to customize a CD online, right down to the album title and liner notes; and why about 60 of Lands' End Inc.'s 3,000 call-center reps are "Specialty Shoppers" available to help Web buyers with special requests or questions via phone or live online chat. A sample of every product that Lands' End sells online is stored in the Specialty Shoppers area, so reps can see and touch the item they're discussing.
"Shopping online can be kind of a lonely experience, compared to a store," says Tracy Schmit, a business Internet analyst at Lands' End, in Dodgeville, Wis. "We're trying to close that gap with a live person to help you with a recommendation."
Lands' End has the right idea, because the competition isn't just other Web sites, but other shopping channels. "Overall, the cumulative shopping experience has to be better online than in the store for the Web to be the preferred buying medium," says Regina Connell, managing director of customer insight and experience for E-business integrator Proxicom Inc. "It can't just be that you can do the commerce transaction online--there has to be more."
What differentiates online merchants most, say E-retailers and analysts, is a personalized shopping experience that you won't find in a crowded mall on the day after Thanksgiving. Assistance in finding the right gift for the right person at the right price is obviously invaluable for high-end merchants such as the jeweler Tiffany & Co. or custom beauty-products seller Reflect.com, but it's no less important for smaller-ticket items such as instructional toys.
SmarterKids.com Inc. in Needham, Mass., has invested much of its technology budget in building online applications--which it's trying to patent--that help its 250,000 customers select gifts for kids from infants to teen-agers. Its Gift Finder, written in Microsoft Visual Basic and Active Server Pages with a SQL Server database, pulls up gift suggestions by age, interest, and price. So far, that's similar to a helpful sales clerk. But another application, called Grade Expectations, written with input from teachers and childhood development experts, helps parents compare their child's local curriculum with national guidelines and select appropriate products for them.
"Before the Web, there was no way you could cost-effectively address consumers with that level of insight," says Al Noyes, SmarterKids.com's VP of sales and marketing. SmarterKids.com expects to make a whopping 80% of its annual sales in the fourth quarter, and the company is betting that Web-based selection tools will mean more satisfied customers and fewer returns. "Someone is a lot less likely to be disappointed with the product if they're buying from SmarterKids," says CIO Rich Secor.
Photograph of Rich Secor by Mathew McKey
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