1. Lack of Strategic Direction
“Build it and they will come” is not a strategy for e-commerce success.You wouldn’t expect a new store to bring in business without advertising and promotion, so why would you build a website and
expect it to boost business if nobody knows it exists? E-commerce must be supported with marketing and advertising if you want to make it part of your business as a true channel. Search engine optimisation is
critical, as is the integration of promotional materials and marketing campaigns to generate traffic by promoting online and offline store locations and create synergy through consistency in brand messages.
Just as misguided is the “spray and pray” approach. You can’t be everything to everyone. Your product or service is designed to satisfy the particular needs of your target segments, and marketing and
advertising should reflect that. Targeted communications are key.
2. Poor User Interface
A user interface that is confusing or hard to navigate will deter customers and prospects and reduce repeat purchases. Targeted search, simple menu structures and clearly labelled products are some
of the basic ways you can encourage visitors to purchase. For more tips on how to increase usability and enhance your customers’ online experience.
3. Lack of Trust
Trust and credibility with your customers is important both online and offline. Security issues can deter customers and prospects from ever buying. The online environment differs from the offline environment in
that customers are required to provide full credit card details in order to purchase. As such, businesses must provide security against misuse of this information. Use of SSL (which enables the encryption of sensitive
information during online transactions), known and trusted payment gateways and clearly displayed privacy policies will increase trust and credibility in the organisation. Make it simple for customers to see that
others have purchased and have had a positive experience with your company through use of a “clients” or “testimonials” page where possible._As is common practice offline, businesses can also increase
trust and credibility by providing tracking capability, delivery guarantees and returns policies, which provide customers with the peace of mind that the product will arrive within the specified time period, in good
condition, and can be returned if it’s not quite right.
4. Payment Gateway Issues
Limited payment options and poor post-transaction communications can prevent customers and prospects from purchasing. Offline customers are provided with cash or card alternatives and a receipt for record of
purchase. Similarly, online businesses should provide a wide range of payment options to ensure customers are capable of purchasing, as well as a “thank you” page with purchase reference/credit card receipt
details to provide assurance that the transaction has been recorded and documentation is available for personal records.
5. Poor Technology
Just as a shabby, unkempt retail outlet screams poor quality, outdated technology also indicates a product/service that is behind the times. Customer-driven changes in e-commerce technology occur constantly, and online retailers are expected to keep up. Your customers will turn
to your competitors for products and services if they are more accessible, or provide additional benefits (eg. product comparison capabilities).
Leading website technology which streamlines distribution, simplifies stock control and increases overall organisational effectiveness through integration with CRM databases and accounting systems can increase
operational efficiency and reduce costs. providing players with a competitive advantage over those who lack such technology.
6. Lack of Transparency
Offline, customers are able to view products and services in great detail, and can approach a customer service representative with any questions. Online, information should be just as readily available. Your
website should provide all of the information your customers need to purchase, as well as a “help” section with frequently asked questions and clearly displayed contact details should they wish to speak to a
customer service representative. Privacy policies should be visibly displayed and delivery guarantees and returns policies clearly stated. Encourage visitors to engage with your business by providing
interactive applications such as forums where appropriate.
7. No Personalisation
One size does not fit all. Your website should provide a variety of products, prices and styles for different customer segments to increase probability of purchase - just as you would if you were
operating offline, . Provide differentiated pricing and promotions for the various entry/point of sale sections of your website, (as you would promoting your product/service offline in various locations) and tailor the online experience as much as possible by allowing your visitors to tell you in detail what interests them.
8. Failure to Manage Customers
Online, organisations can learn from customer experiences by:
developing communities around their product or service through social networking sites and forums, surveying or polling visitors, and using analytical tools like Google Analytics, coreDNA Statistics or Omniture to track where visitors are referred from and whatinterests them on the site. This data can then be used to refine strategy.
In order to stay top of mind, organisations must reach customers regularly. Online, organisations should provide the opportunity for visitors to sign up for newsletters, subscribe to blogs via RSS and
undertake personalised direct marketing campaigns via email to keep customers informed. In addition, your website should differentiate the product/service offering for various target segments where possible.
9. No Incentives
It’s no secret that promotions boost sales, and often we go online looking for a bargain (the cost of sale is lower online and visitors frequently expect prices to reflect this). If your website lacks incentives,
or they’re difficult to find, you may be losing business to your competitors. Follow the same principles you would offline and offer seasonal promotions, sales and loyalty programs which provide added perks.
10. Poor Product/Service Offering
The online environment is highly competitive and shoppers are becoming more experienced. If you don’t deliver what you promise, or offer poor customer service, bad news will travel fast (particularly as visitors can post details of their poor online experience all over the internet almost immediately!). Lastly, and possibly most importantly, none of this will help if your product or service isn’t up to scratch. Just
because you operate online doesn’t mean you should ignore product/service quality.
10. Conclusion
While there are a number of reasons why a business may not succeed in e- Commerce, these are the most common, and should be avoided in order to achieve success in the online retail environment.
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