Category Customer Centric
Online flower prices grow as you go
By Bob Sullivan
Companies often advertise one price to lure customers into their stores, then charge a higher price. In days gone by, this was called “bait and switch.” Now, it’s called fees and surcharges.
On the Internet, this tactic has another fancy name: “landing price.” Advertisements include a low price to persuade customers to land on their e-commerce site. But by the time shipping and handling is piled on, the “out-the-door” price is substantially higher.
This tactic is most clear in the world of online florists, and most prevalent during Valentine’s Day. A quick survey of the top online florists shows that consumers using the two top sites typically pay at least 50 percent — and often as much as 100 percent — higher than the advertised price.
Take ProFlowers.com, which this week was running nearly ubiquitous ads with offers like this: $29.99 for a dozen roses and a free vase. But any consumer wanting the arrangement delivered on Valentine’s Day will pay at least $55, after shipping, taxes, handling and a Saturday delivery fee are added. Shoppers who agree to early delivery on Feb. 12 will save $10, but will still pay around $45 (when $10 shipping, $1.99 handling and about $3 in taxes are added in). That’s still 50 percent above the advertised price.
Making matters worse for shoppers: The total price isn’t revealed until the last possible moment — after the recipient’s name and address, credit card number, billing address and even the “Love, Bob,” note are entered. This reporter counted seven screens before the real price was unmasked. After all that typing, consumers are less likely to abandon the transaction.
ProFlowers says all its advertisements indicate customers will face additional fees
“ProFlowers advertising…clearly states that shipping and handling are additional costs,” spokesman Mike Rosen said in an e-mail. He said the company has not received any complaints that its advertisements are deceptive.
Rosen also pointed out that consumers can add the total cost on their own within the first click or two. But to do that, consumers must notice and click on a link named “details” while picking the delivery date.
“I don’t think you give consumers enough credit,” Rosen countered. “In this day and age customers understand this process better … and expect to pay shipping charges.”
Posted by Tom Polanski in Customer Centric on February 12th, 2009
Delete cookies, score some dough
By Melinda Fulmer
If you’re a new customer at the Bradford Exchange, you can get four boxes of personal checks for $23.97 with a new-customer coupon. The same order will cost a repeat customer who doesn’t have the coupon $59.60.
It may seem counterintuitive, but in the online shopping business, loyalty isn’t rewarded.
The best discounts are typically reserved for new customers. And one of the easiest ways to make Web retailers think you’re a new customer is to delete the cookies they leave on your computer, says Robert Weiss, an attorney specializing in information technology at Neal, Gerber & Eisenberg in Chicago.
Bit of text can tell a lot
A cookie is a piece of text that a Web server sometimes stores on your computer when you visit a site. When you go back to that site, your browser retrieves this file, and the site identifies you as someone who’s shopped there before.
Retailers use this information to figure out the best way to sell to you. They can determine:
a. What departments you visited on their site.
b. How often you’ve been there and how long you were there.
c. What you’ve put in a shopping cart.
Amazon.com says it uses this type of information only to make product recommendations, not to decide who gets discounts. The e-commerce giant came under fire a few years ago for allegedly using this information to offer different prices to different customers.
Posted by Tom Polanski in Customer Centric on February 11th, 2009
Online shoppers, keep your mouse handy
By Suzanne Choney
Online retailers are offering a mix of specials and sales this holiday season that may leave Web shoppers mixed up as to where, when and how to buy.
More than ever, shoppers need to pay attention to the fine print on the screen, and stay alert for deals that are changing daily and sometimes hourly. There may be great offers available because of the struggling economy, but if you blink — or don’t click — in time, you could miss out.
“I think retailers will be playing the price game sooner than in the past,” said Kurt Peters, editor-in-chief of Internet Retailer, a trade publication.
Indeed, that seems to be the case, despite the fact that Black Friday, the day after Thanksgiving, and Cyber Monday, the Monday after Thanksgiving weekend, are considered the traditional starting points for holiday shopping. Many retailers’ Web sites have been filled with specials for several weeks now.
And, there’s already a fair amount of texting, Twittering and e-mails going on by retailers and shoppers about sales and bargains.
Social networking — be it through sites like Twitter or Facebook — is magnifying the season’s gift-a-thon more than ever before.
Posted by Tom Polanski in Customer Centric on November 17th, 2008
The importance of building trust online with strong, consistent branding and customer-centric practices
By Tom Polanski, EVP, eBrand Media and eBrand Interactive
I’m surprised by the number of companies that lack an understanding of how to improve stickiness on their site. Every end-user approaches a site for the first time with a degree of anxiety. We’re all a little apprehensive about whether the site will be secure, easy to navigate and, ultimately, whether we will actually get what we order.
Over the years we’ve looked at perhaps a hundred thousand sites and we’ve found that the best sites (and best converting sites) have security symbols above the fold, crisp images and convey a feeling of orderliness. Additionally a shopper is made to feel comfortable in other ways too; most importantly, no surprises! The “best practices” site will give the shopper a window view on availability and shipping costs well before they arrive at the check out page.
A real concern for end-users, too, is privacy…the collection and use of personal information. Studies show that 30% of the online population is still wary of giving out their personal information and an astounding 51% don’t trust search engines to keep their search data secret. Additionally, 30 percent of consumers report reducing their overall use of the Web, while 25 percent say they no longer make online purchases, according to WebWatch. The report, “Leap of Faith: Using the Internet Despite the Dangers,” was based on a survey of 1,501 online adults.
Even those who continued to shop online reported taking precautions. Fifty-four percent of online shoppers said they now are more likely to read a site’s privacy policy or user agreement than in the past–while 29 percent say they shop online less frequently than before.
It’s a hot button issue for end-users and marketers too.
Posted by Tom Polanski in Advertising, Customer Centric, Marketing on August 21st, 2008