Its All About the Video!! What You See is What You Get!

Come on webkins!....Why could you possibly be waiting to introduce video elements to your website???

To Raise Shopper Satisfaction, Web Merchants Turn to Videos

Mike Mergen for The New York Times

By BOB TEDESCHI

Published: July 2, 2007

FOR years Internet merchants have poured millions of dollars into new technologies to make their sites easier to use. So why aren’t online customers happier?

Customer satisfaction levels have remained almost flat through the last several years, according to a survey of about 20,000 online shoppers recently released by ForeSee Results, a consulting and research firm based in Ann Arbor, Mich. The problem, according to Larry Freed, ForeSee’s chief executive, is not so much that consumers have ignored the many improvements made in recent years. Rather, he said, they still expect more from Internet shopping than it has delivered.

“If we walk into a local store, we don’t expect that experience to be better than it was a couple years ago,” Mr. Freed said. “But we expect sites to be better. The bar goes up every year.”

In ForeSee’s latest survey, released last month, just five e-commerce sites registered scores higher than 80 out of 100, and no site scored higher than 85. They were, in descending order, Netflix, QVC.com, Amazon, Barnes & Noble and the pet supplies site Drs. Foster & Smith. It was much the same story a year ago, when just five scored higher than 80, with no site surpassing 85.

“Scores have inched up over time for the best e-commerce companies, but the overall numbers haven’t moved drastically,” Mr. Freed said. “At the same time though, if you don’t do anything you see your scores drop steadily.”

That dynamic has been a challenge for online merchants and investors, who a decade ago envisioned Internet stores as relatively inexpensive (and therefore extremely profitable) operations. Now some observers predict a future where online retailers will essentially adopt something like the QVC model, with sales staff pitching the site’s merchandise with polished video presentations, produced in a high-tech television studio.

QVC.com is evolving in that direction. The Web site, which sold more than $1 billion in merchandise in 2006, has for the last five years let visitors watch a live feed of the network’s broadcast. But in recent months, QVC.com has also given visitors the chance to watch archives of entire shows, and in the coming months visitors will be able to find more video segments from recent shows, featuring individual products that remain in stock.

Bob Myers, senior vice president of QVC.com, said the Web site’s video salesmanship is especially effective when combined with detailed product information, customer reviews and multiple photographs.

“E-commerce started with television commerce,” he said. “The sites who engage and entertain customers will be winning here in the near future.”

Such a prospect is not necessarily daunting to other e-commerce executives. Gordon Magee, head of Internet marketing for Drs. Foster & Smith, based in a Rhinelander, Wis., said a transition to video “will be seamless for us.” The company, Mr. Magee said, has in recent weeks discussed putting some of its product on video “so customers could see a 360-degree view they don’t have to manipulate themselves.”

Because Drs. Foster & Smith lacks a history in video production, Mr. Magee said the company would rely on vendors “who’ll do the video for you and just send you a piece of code to get it on your site. It’ll be an easy switch for most people. And I do think it’ll become a major thing in e-commerce.”

Whether it will be an expensive transition is unclear. In the meantime, Mr. Magee said the company should sustain its customer satisfaction levels as long as it continues to anticipate even basic needs. F

Some businesses, however, have managed to build extensive customer service systems without spending much money — and build them in a way that, they say, improves their overall customer satisfaction levels. Take, for example, Lala.com, the online barter service for CDs and DVDs.

When the company began last year, it did not have enough money to hire an extensive customer service staff. But the site’s founders created online discussion boards to encourage a sense of community among customers. Shortly thereafter, they witnessed customers helping others with problems or questions, and a de facto customer service team was born.

Now, according to Anselm Baird-Smith, one of Lala’s founders, customers find help through so-called guides — a designation earned by a few thousand volunteers who have shown a propensity to answer questions in the forums. Not only do the customers get help, he said, but the volunteers are more loyal to the site than they might otherwise be.

“Those guys like coming to our site, spending a few minutes and contributing,” Mr. Baird-Smith said. “People like being known in their own community.”