1. UNIVERSITY OF MASSACHUSETTS DARTMOUTH Fahri Karakaya, Ph. D. Charlton College of Business Department of Marketing/BIS This E-Commerce Network is one of the 25 network organizations sponsored by Mass. MEP www.Umassd.edu/ecommerce www.Umassd.edu/ecommerce UMass Dartmouth

2. AGENDA Breakfast & Networking Introductions Network Group Discussion Presentation “ Connecting with Customers Using the Internet: customer service, ” by Fahri Karakaya, University of Massachusetts Dartmouth UMass Dartmouth

3. Consumer behavior patterns 76% filling out a form on the Web. Online purchases are more than paper catalog purchases for Net buyers. 32% spent between $100-$500 Spending of less than $50 decreases steadily as shoppers gain experience. Women are more likely to make smaller purchases compared to men. Experience: < 1 Year 1 - 3 Years > 4 Years

4. Types of Customer Service Functions Answering customer inquires. Providing technical and other information Letting customers track accounts or order status Allowing customers to customize and order online (e.g., Dell Computer and Levis)

5. Online Customer Satisfaction 70-75 % of shoppers still abandon shopping carts without purchase! Internet marketers have made improvements! 96% of home buyers surveyed who used the Internet to shop for a new home are completely satisfied compared to 44% of traditional home buyers Airline web sites - provide real-time information (e.g., arrivals & departures)

6. Customer Service / Management Static Support: Companies are able to make extensive amounts of product / company information available to customers Important: 1) Good Web Site design with search capability and navigation. 2) Customer Service area with FAQ’s 3) Accurate and up to date content

7. Customer Service / Management Dynamic Support Customers are able to interact with the sites to get support information. Examples: - Text boxes text chat (instant messaging) - Online one-to-one typed dialogue with customer reps. - Forms for customers to fill out See Wiredempire.com Wiredempire.com See LivePerson.comLivePerson.com

10. - Voice over the Internet

11. Customer Service / Management 24/7/365 e-mail - Auto responders to e-mail e.g. - will be out of the office until..… - Automatic & instant answers to questions asked in e-mail or forms. - Aptex Software Inc, markets artificial intelligence tools to understand questions without human intervention, and even get the tone of e-mail whether angry, sarcastic, or humorous. - Notify customer on transaction related communications such as order status and receipts via e-mail.

12. Customer Service / Management Streaming video over the Internet Mustang Software, eGain Communications, and Kana.com Communications, Brightware.com market software programs that can read and make sense of e-mails.

13. Customer Service / Management Newsletters are important in building a community. Need permission! Intelligent Web site performing certain tasks (e.g., purchasing a car - calculating price and financing), and purchase transactions Example: Federal Express - Tracking Important: 1) Speed 2) Accuracy of information 3) Trust 4) Quality Experience

14. Most important Human contact - customers should be able to speak to customer reps via telephone. 1-800 numbers - call centers Quality experience - -timely and accurate response to customer inquiries -Speedy product delivery -Make it easy for customers to return / exchange products

15. Most important What will cause people to come back? - Info. For customers to download (e.g., user manuals) - Freebees - Sweepstakes - Auctions e.g., Lufthansa ticket auction –Don’t just supply electronic information, create an online community (e.g. customers able to speak to one another) –Customer Frustration means: No Purchase + No Repeat Visit

16. Most important Personalization and Privacy + Can learn about customers’ preferences Amazon.com, Expedia.com Tracking and data mining software See hncmarksman.com, Data distillers.com

17. Most important Some people feel - invasion of privacy Some people do not even know Personalization consortium study - most people prefer to have their actions tracked and personal information stored.

18. Personalization.org

19. Useful Web Sites on Customer Service For latest customer service data and trends: www.csr.co.za International Customer Service: Association www.icsa.com Advice and Discussion Groups: www.indy.net/robo

22. UNIVERSITY OF MASSACHUSETTS DARTMOUTH Fahri Karakaya, Ph. D. Charlton College of Business Department of Marketing/BIS This E-Commerce Network is one of the 25 network organizations sponsored by Mass. MEP www.umassd.edu/ecommerce www.umassd.edu/ecommerce UMass Dartmouth ranked 5th. among northern public universities by