Report: Miles To Go Before Customers Rule Online

Most companies still are not performing adequately when it comes to satisfying online customer needs, according to a report released Monday by the Yankee Group.

"Sites are evolving from brochureware into places where customers go to get something specific done," Yankee Group analyst Lisa Melsted told the E-Commerce Times. "Some companies are starting to think in more customer-oriented terms, but improvements can be made everywhere."

Many Web sites actually have made enormous strides toward better customer-centric initiatives in recent years, according to the report, entitled "Providing a Customer-Oriented Online Experience: Is Your Site Serving Your Customers as Well as It Can?"

But an evolution in corporate mindsets about customers still must take place before more companies can take strategic advantage of the Internet, the research firm said.

Basic Offerings

Fully 46 percent of e-business managers work for executives who do not consider the Web important to their overall business strategy, according to the Yankee Group's 2001 Doing Business on the Internet (DBI) Survey.

Despite this apathy, companies should include a number of basic features and functions on their Web sites, Melsted said.

Such features include intuitive site design, site personalization, customer targeting, online marketing, service and support and online-offline integration.

Lack of Support

Some vertical industries -- such as ISPs, portals, financial companies and high-end news and entertainment sites -- seem to be ahead of the curve in providing basic features, according to Melsted. But even companies in those categories need to enhance how they serve their customers online.

Companies must make the most improvements in the area of online service and support, according to the Yankee report.

Indeed, just 45 percent of e-business managers said their companies currently are providing online customer service and support via the Web, according to Yankee's DBI Survey.

"There are too many sites that don't have any customer support features," Melsted said. "This is imperative for every site."

Adequate online support features include message boards, live chat and e-mail, she added.

Blending Channels

Not to be underrated is the growing importance of integrating the online sales channel with offline channels, according to Melsted.

Customers need to be addressed more holistically, she added, and companies must work harder to drive traffic between their Web sites and their brick-and-mortar presences.

Companies like Lands' End, Sears and J.C. Penney earned Melsted's praise for achieving some success in integrating their disparate sales channels.

Work Never Done

Tracking and improving the online customer experience is an ongoing process, Melsted said.

Companies should study site analytics to identify and track usage patterns and events with high repeatability, she suggested. In addition, they should conduct extensive usability testing before site launches and redesigns to cut down on future problems.

"Customer requirements are going to change over time as well," said Melsted, "so the checklist will keep growing."