By Nora Macaluso E-Commerce Times
11/16/01 10:42 AM PT
Web surfers will become buyers 'only when marketers overcome the lack of trust
that paralyzes many would-be Net shoppers,' the McKinsey report said.
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To build trust and gain customer loyalty , online merchants and marketers
need to let Web shoppers feel in control of the buying process, as well of
the ways that personal information about them may be used, according to a
report published Thursday by McKinsey &
Co.
Just 4 percent of Internet users routinely register at Web sites, and those
who make it a practice not to register say that lack of trust is one of the reasons,
McKinsey said, citing a Georgia Institute of Technology survey.
According to McKinsey, the Web merchants that lead their industries are
those that "embed" trust into the browsing and shopping process.
CDNow and Amazon.com (Nasdaq: AMZN),
for example, get well over half of their sales from
repeat customers, while repeat orders account for only about a quarter of
sales at less successful sites, the report said.
In Security We Trust
"Building trust that leads to satisfied customers is complex -- but
essential -- for marketing executives," McKinsey said. "Winning marketers
move well beyond the basics with more subtle trust-builders that
differentiate them from the also-rans."
Having state-of-the-art security -- and telling customers how that system
works in plain language -- is one way of ensuring trust, McKinsey said.
The assurance that click-and-catalog retailer
Landsend.com offers
to e-shoppers ("You have no credit card risk. Period.") is a good example,
the report said.
Jockey for Position
McKinsey said Web surfers will become buyers "only when marketers overcome the lack
of trust
that paralyzes many would-be Net shoppers."
And smaller e-tailers are not left out of the game, because they
can gain trust by carrying brand-name merchandise or
securing a spot on a well-known site.
Telephone service provider Tel-Save, for example, increased
its sales more than 47 percent when it landed a good position
on America Online, the report said.
"Low-risk trials and creative offers" can also help lure
customers, who may sign up for more services if they like
what they see, McKinsey suggested.
Easy Does It
Making it easy to order and filling orders
correctly are obviously important, McKinsey said, citing Amazon's 1-Click
ordering process as an example.
The 1-Click feature remembers a customer's address and credit-card information so
that placing orders is speedier after the first transaction.
A mistake, however, "can be an opportunity for a company to show its best
face and build trust with its clientele," McKinsey said.
An apology and a free T-shirt can go a long way, according
to the report's authors, Sandeep Dayal, Helene Landesberg
and Michael Zeisser.
, online merchants and marketers
need to let Web shoppers feel in control of the buying process, as well of
the ways that personal information about them may be used, according to a
report published Thursday by McKinsey &
Co.
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