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Negative Online Shopping Experiences Pose Serious Danger to Retailers' Brands According to National Consumer Survey

Posted on: Tuesday, 24 January 2006, 09:00 CST

55% of Consumers Say Frustrating Online Experience Negatively Affects their Opinion of a Retailer; Nearly 33% Say they May Not Shop at a Retailer's Brick and Mortar Store as the Result of a Poor Online Experience

While there was much celebration over record-breaking online holiday shopping totals this season - $30.1 billion according to Goldman, Sachs & Co., Nielsen//NetRatings and Harris Interactive - retailers are risking significant damage to their brands by failing to deliver a positive customer experience online. And the results may be more damaging than they think, according to a recent national study conducted by Allurent.

The 2005 Holiday Shopping: Online Customer Experience Survey revealed that a negative customer experience online not only damages a retailer's brand and reduces online sales, but also could directly lead to a reduction in offline sales.

An overwhelming 82% of respondents said they would be less likely to return to a site where they had a frustrating shopping experience, and nearly a third said that a frustrating experience when shopping online would make them less likely to buy at that retailer's physical store. And 55% of consumers surveyed said that a frustrating shopping experience online negatively impacts their overall opinion of that retailer.

In addition to confirming previously identified problems that have been linked to negative experiences, the survey clearly identified other critical issues that led to negative online shopping experiences including poor site navigation, problems with checkout, inadequate browsing capabilities, and not enough product details to close the sale. Previously reported issues include high shipping costs, inventory problems, and pricing.

Other findings of the survey include:

Leaving Money on the Table: Shopping Cart Abandonment Remains a Problem

More than half of the respondents (51%) said they abandoned their shopping cart even though they intended to buy products on that site. Many reasons were cited for abandonment, including having to click through too many pages to checkout and the checkout process being too long.

Interest in Rich Applications Growing

Consumers want to feel comfortable about the products they are buying online, demonstrated by the 76% of respondents who said that they were more likely to buy products on a site that offers rich features, such as product zoom, 360 degree product views, and online videos of the product in context. 54% of respondents who choose to shop in a physical store vs. online do so because shopping in a store allows them to understand a product better. This demonstrates the need for retailers to offer rich site features that allow consumers to better understand a product and complete the sale online.

Shopping Online is Convenient, but Not Fun

While 81% said shopping online this holiday season was convenient, only 57% said it was trouble free and only 29% described shopping online as fun. 66% of respondents said that they would be more likely to buy products online if it was more like a positive shopping experience in a physical store.

"Customer experience matters! In order to increase conversion rates and build brand equity, retailers need to take advantage of the Internet by providing a better experience than users can have offline. It should be easier to find products quickly, check available sizes or colors or other options - and to get out quickly!" said Esther Dyson, editor of Release 1.0, the influential information technology newsletter published by CNET Networks. "The retailer needs to offer both better browsing to attract and convert the 'just-looking' customer, and a seamless checkout experience for the purposeful buyer."

About The 2005 Holiday Shopping: Online Customer Experience Survey

The 2005 Holiday Shopping: Online Customer Experience Survey is a national survey designed to provide insight into the online customer experience and how that experience affects brands. The survey was conducted via Zoomerang, an online survey services provider, and is based on 775 respondents. The survey is sponsored by Cambridge, Mass.-based Allurent. A Research Brief providing detailed information on the findings is available at the Allurent Web site, www.allurent.com.

About Allurent

Headquartered in Cambridge, Mass., Allurent is the Rich Internet Applications for Commerce company. Allurent is developing a suite of Rich Internet Applications focused on the full life cycle of online shopping, from finding and browsing products to pageless order management and checkout. Each application dramatically improves customer experience, driving greater conversion rates, customer satisfaction, and profit. For additional information please visit www.allurent.com.

Source: Business Wire

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