Monday, February 16, 2009
"Press 3 for a Diamond Expert."
It was very interesting to read an interview of Mark Stolzman, CFO of Blue Nile, Inc. the online diamond retailer.
Besides the financial aspects of the story (low or no inventory carrying costs, etc.), here are a couple of excerpts that I found interesting, especially finding it in the CFO magazine:
"Right now we have about a 4 percent share of the engagement[-ring] business in the United States, and we think we can double or triple that in the next five years. We want to expand our market share both domestically and internationally. We want to do that by offering education, quality, and selection. And we'll continue to expand our service to the customer both in terms of [technology] tools and in terms of access, whether it's by online chat, E-mail, or telephone."
"Despite the fact that most of the purchase process is done online, our customer-service group gets involved in a vast majority of our purchases, because customers still think, "OK, I'm making a significant purchase, and I want to make sure I've made the right decision." So they get comfort in accessing our diamond experts and knowing the purchase they're about to make is solid."
Mark Stolzman's words capture the power and the challenge of new media in building trust among remote users. Being able to sell a diamond ring without actually meeting the seller in person calls for a high level of trust to be established early on during the shopping experience. The convenience of using the telephone, besides email and chat online, seems to indicate that the trust-building requires some extra support through old technology.
Take a look at this unrelated news item titled "More Consumers Going Online to Shop". According to Nachi Lolla, research director, commerce at Nielsen Online, the majority of consumer concerns about online shopping have been lifted.
Even if retailers may not have mastered all the methods of trust-building over the web, many of the earlier hurdles seem to have been crossed or outweighed by the sheer convenience of getting things or getting things done over the web. The average user now submits shipping and payment information on the web without hesitation. Companies have started building brands on the web where the customer knows that effective means of redresssal are available with a simple email expressing dis-satisfaction about a purchase.
Even if all the tools are available for an online user to independently research and verify the authenticity of an online business, you will be surprised at how often a user says "Is there a phone number I can call?"
As the customer-service function strains to be prompt in its responsiveness, as it strains to overcome the absence of face-to-face or tactile experiences in online shopping through other communication tools, there is a need not only for using whichever instrument of communication works best within the customer's comfort zone, but also a need to have knowledgeable people at level-one customer support.
Just like the diamond experts that Mark Stolzman talks about. That comes at a price - I suppose at a price lower than inventory-carrying costs.
Friday, June 27, 2008
Helping the Help Lines
These dynamic factors amid a ticking clock are what make the world of online events so different. I admire the nerves of our technical team, because they have consistently delivered with only one thought to guide them - how to make the online event participant's life easy. I almost see their work to be in the realm of air traffic controllers. The only difference between an air traffic controller's work and our technical crew's work I suppose is that instead of real lives being involved, there are real livelihoods involved - real marketing folks take part in our online events. They are very stressful. [ A shout-out to our technical and support team would be most appropriate here! ] However, the real help to the help-line begins at the design stage. While it is inconceivable to visualize every potential problem, impossible to predict every instance of users getting confused with the user-interface even though we could have vouched that the event is made to be highly intuitive, the more time spent in thinking and planning the user-experience and navigation before-hand, the lesser the strain on the support lines.