Consumers Will Abandon Problematic Web Sites
Insurance Networking News, December 2007
Insurance customers won't tolerate difficult navigation, endless loops that prevent transactions or other Web site challenges, according to survey results released by San Francisco-based Tealeaf Technology Inc. The survey, conducted by Rochester, N.Y.-based Harris Interactive Inc., indicates about nine out of 10 consumers conducting transactions online (within a number of industries) have experienced problems. This year's survey highlights online consumer intolerance, as 42% of those who have experienced problems when conducting online transactions switched to a competitor or abandoned the transaction entirely. Additionally, 52% who experienced bad customer service from a company's contact center following an online issue stopped doing business with the company as a result.
E-commerce continues to grow, as research from Cambridge, Mass.-based Forrester Research Inc. estimates 2007 online retail sales at $157.4 billion, and expects this number to grow to $271.6 billion (or 9% of retail sales overall) by 2011 ("U.S. Retail eCommerce Forecast"). But, this growth camouflages underlying issues. "We're in a 'perfect storm' as users' dependency on e-commerce grows and their patience for bad online experiences wears thin," says Rebecca Ward, CEO of Tealeaf. "More than a decade into e-commerce, we're increasingly savvy online consumers, and we're no longer willing to put up with experiences that do not live up to our expectations."
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