E-commerce To infinity & beyond? Kieron Smith Agenda 1. Growth & crisis 2. Why is this happening 3. Why is the customer never happy? 4. The GAME case 5. What can we do about this? Progress of the Internet Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Dotcom Burst Steady Integration ? People accessing and buying Growth/Crisis in ? Crisis of service Growth in inclusion Crisis of red tape Growth in consolidation Crisis of control / collaboration Crisis of trust/confidence Growth through direction Growth through creativity Young 1994 --- 1999 --- 2004 --- 2006 Mature After Greiner 1972 Growing pains as move from mass service to service shops Why the customer is never happy The famous 1967 Stanley Milgram study which showed there were at most “six degrees of separation” between any two people in America Despite the increase in population the number has now fallen to 4.6 Customers bad experiences spread faster than ever before The Economist 21 01 06 Bombarded, cynical & informed “We now have a far more informed but far more cynical consumer.” Siemon Scamell-Katz Average of 3,500 daily messages 99% have no impact The Guardian 19 11 05 Expose your guts … or the customers will Hack-Your-Own Our experience of the informed customer on a mission Service measure 1. Tangibles: site, usability, abandonment 2. Reliability: pick, pack & dispatch. 3. Responsiveness: customer contact, proactive communication. 4. Assurance: ability to inspire trust & confidence. 5. Empathy: caring, individualised attention provided to customers. After Parasuraman et al 1994 Conclusion • Many retailers now face a crisis of service due to exceptional growth. • The challenge is to move to a ‘service shop’ – high customisation & low labour. • The networked customer is cynical and bombarded – target well and work with them or they will work around you. • Measure & monitor service levels to take us to the next phase of growth.
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