Customer Service and E-Commerce Strategies, Research Paper Example

Why Electronic commerce?

The Internet is a valuable channel of communication. In fact, it is now the primary source for research, communication and broadcasting.  Organizations provide information on the Internet regarding their products and services. The principle objective is to develop a trust and confidence level for the customer to buy products and services online. Electronic commerce is the carrier of doing business online. It involves interchange of information across the Internet. It allows the consumers and business for electronically exchange of goods and services without limitations of time and remoteness. A simple definition is given on www.networksolutions.com which states “Electronic commerce or ecommerce is a term for any type of business, or commercial transaction that involves the transfer of information across the Internet”.

In the current business environment numerous organizations are doing business online. The prime objectives are to sell the product online. The prime focus of these organizations is the constant improvement of customer satisfaction level. However, satisfaction as the confirmation of expectations has started to be conceptualizing almost as a threshold for customers. The delivery of satisfaction is the minimum the customers expect. Hence attention began to shift towards concepts like “Customer Delight” (Schneider &Bowen, 1999).

Customer Support in E business

An E-commerce system can be an ideal platform to improve the accomplishment of business transactions over numerous networks. These improvements may result in more effective performance, greater customer satisfaction, and rapid exchange. In order to achieve such goals, E-commerce should meet customer satisfaction, assist corporate decision making, achieve high-speed transactions, and charge low cost for services offered (Deming, 1982). For achieving long term financial performance of the organization, customer satisfaction is the area to focus. There are various strategies for increasing customer loyalty and satisfaction for a long term relationship.

Lifetime Value of the Customer

Organization can adopt this strategy to determine an overall cost of a customer. This is the measurement of the customer’s value to the organization. It is the probable assumption of the customer efforts over a period of time. By calculating life time value of the customer for ‘example’, how much revenue the customer will produce, the organization will get a benchmark of investing on a customer.

Frequently Asked Questions

This technique is most commonly used for providing better views on a topic. The FAQ pages consist of common questions and answers relating to the basic theme of the website. It is a value added service for providing a better understanding on the specific topic. Customers can click on any topic including FAQ for a better understanding. The customer enquiries regarding product details and technical support minimize on a certain level due to FAQ.

Handling Returns

When a customer wants to use e commerce enabled services on the Internet, web merchant has to play a prominent role. Web merchants process payments online to different parts around the globe. They also process MOTO (Mail order, Telephone Order). It is very important for an e- business to hire a quality online merchant to maintain the same level of satisfaction. The web merchant focus will be on two aspects, simple return process and easy order tracking.

Shopping Cart

In depth planning is required for selling products online on an E commerce solution. For generating optimal sales targets with enhanced security shopping carts is the right choice. Some of the features typical shopping carts are as follows:

Instant order processing

Instant order processing is required for better customer satisfaction. Instant order processing consists of payment authorization and order processing. This feature excludes the possibility of third party to process customer orders.

Security

This is the most vital contribution which needs to be primarily on top. Most advanced security methods should be implemented in order to avoid any threats and attacks from hackers or viruses. Even a fraud with a single customer will result in a severe negative impact and loss of business. The shopping cart must be equipped with a password and instant support for customers.

Payment Methods

For both the customer and the merchant multiple payments methods is a ‘must have’. This will be flexible for the customer to pay either via PayPal or any other online transaction process adding a plus to the customer satisfaction factor.

Customer Relationship Management

A comprehensive definition is available on ‘www.webopedia.com’ says “CRM entails all aspects of interaction a company has with its customer, whether it be sales or service related” Delivering complete customer satisfaction should be the key goal of all organizations. It is proved that customer satisfaction is directly proportionate to loyalty of the customer with the organization, leading to succeeding profits for the organization (Anderson & Mittal, 2000).

Customer Relationship Management enables the organization to conduct detailed customer information in an efficient way. Customer relationship management system facilitates the staff of the organization, which directly interacts with customers to access the database.

Better Marketing with CRM

CRM enables the marketing department of the organization to prioritize and identity the best customers. New quality leads are generated from the sales team of the organization by creating different marketing campaigns. It also enables the marketing department to create and work on different campaigns related to improved marketing and customer satisfaction.

Improved Sales with CRM

The sales, telesales and accounts departments are optimized with all the information shared by different employees of the organization with a CRM enabled environment. The sales staff covers detailed information of the customers supporting the processes streamlined and enhanced.

Improved Customer Satisfaction

CRM enables to develop individual relationships with customers. The ultimate of CRM is to provide better customer service and at the same generating revenue for the organization. CRM also identifies the specific most profitable customers in order to prioritize support for them to the highest level.

Serving Customer better

CRM empowers the employees of the organization to access the detailed information likelihood and processes of the customer. CRM ensures effective development of relationships between the customer and the organizations.

Ease of Use and interactive Website Support

The structure and usability of the website should focus on the customer interest. In spite, all the electronic commerce enables services, activities related to customer interest are essential. Suggestions from the customers are also necessary to improve and update the website design and structure. For responding to report fraudulent activities, customer queries, complaints and suggestions an interactive Support center is required on a 24 / 7 basis.

Security

A security mechanism is required to communicate with the customer and securely pass the information electronically to sell products and services online. The objective is to receive information from the customer including personal details, credit card numbers and other confidential data. SSL (Secure Socket Layer) and encryption techniques ensure the reliable delivery of data in a secure way.

SSL (Secure Socket Layer)

SSL is a built in feature of Microsoft Internet explorer used for data encryption. Almost every online shopping website supports the SSL feature to provide customer satisfaction and security. The security mechanism of the website must encrypt the data on a 128 bit secured encryption because there are lots of hackers and fraudulent activities on the Internet.  SSL certificates are highly critical because the customer will always find what security certificated the website contains. SSL certificate logos are always available on the websites for customer satisfaction. For example, VeriSign logo can be found on the majority of the electronic commerce enabled websites.

References

What is E commerce?. Network Solutions. Retrieved September 11, 2010, from http://www.networksolutions.com/education/what-is-ecommerce/

Schneider, B. and Bowen, D.E. (1999). Understanding customer Delight and outrage. Sloan management Review, Vol.41, No.1, p.35

Deming, E.W. (1982). Quality, Productivity, and Competitive Position, Cambridge, MA: MIT.

CRM. Webopedia Online Encyclopedia. Retrieved September 11, 2010, from http://www.webopedia.com/TERM/C/crm.html

Andersen, H. & Jacobsen, P. & Mittal, (2000). Implementing CRM; 20 Steps to success. Customer Relationship Management. pp 267-282