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www.ecommerce-guide.com/solutions/customer_relations/article.php/961571
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By Laura Rush January 25, 2002 You know what they say about the best intentions ... There's a lot to be said for the ingenuity behind recommendation engines and CRM software on an e-commerce site -- particularly when the suggestions are the kind that make your customers slap themselves in the forehead and say, "Great idea!" There's also a lot to be said for coordinating your efforts to satisfy the customer. The shopping phenomenon, "instant gratification," is not new to e-tailers. Many try in vain to compete with local merchants in attempt to satisfy this natural craving by shipping ordered items as soon as they become available instead of the excruciatingly painful process (for the customer) of waiting until all items are ready before shipping. Unfortunately, these earnest attempts to satisfy the consumer often cause more headaches than convenience - especially when it involves buying and shipping gifts. A Fast Food Mentality The next day I received an email notification from Amazon stating that they shipped the batteries portion of the order separately to give me quicker service and the remainder of the order would follow as soon as it was available. I can see the expression on dear Nana's face as she gleefully opens the box and gets one package of Energizer E95FP-8 D batteries. I can hear her now: "Batteries? Come on! I know the economy hit the dot-coms kind of hard this past year, but... batteries?" I should have learned my lesson from two weeks ago, when I placed an order for a textbook for a class I am taking, and was recommended a student solutions manual and special notebook to supplement the notes I'd take in class. I bought both. And sure enough, all three books arrived on three consecutive days -- in an attempt to satisfy my need for instant gratification. A Chink in the Armor The purpose of cross selling is to enhance customer experience and increase sales conversion with the reasoning that ultimately your customers will be more satisfied with your service, reinforcing their decision to buy from you again. By identifying sales opportunities, in my case, batteries for the CD player and a solutions manual for a textbook, the recommendation engine successfully identified which products could be bought together - or, which would complement the other. However, by shipping the batteries ahead of the CD player (a gift), Amazon not only has annoyed a loyal customer, but it incurred the added costs (that it will absorb) of its UPS bill by having UPS make not one, not two, but three deliveries to my house in three days. While I am always appreciative of any attempt to make my life easier and more cost effective, there is a lesson to be learned here. Better integrating a recommendation/CRM solution with order fulfillment may prevent an e-tailer from aggravating customers, and it may save some money in the end. |