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#Written by David Tam, 1999. #
#davidkftam@netscape.net Copyright 1999#
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From tamda@ecf.toronto.edu Mon Jul 12 18:28:33 1999
Date: Tue, 2 Mar 1999 06:58:26 -0500 (EST)
From: David Kar Fai Tam
To: APS 424S
Subject: #16-03/03/99-"Build customer loyalty with Internet-based support"
The Globe and Mail, Thursday, February 25, 1999. B7.
This article explains the economic benefits of creating a
customer support web site. The author, Jim Carroll, points out
that a web site is a great mechanism in building customer loyalty
because it can provide a great deal of customer support,
enhancing a company's rating in customer satisfaction and
support.
As we all know, it costs about five times as much to win a
new customer as maintaining a current one. A web site is a key
factor in maintaining existing customers. With a web site, you
can "kill two birds with one stone". That is, you can carry out
the task of maintaining existing customers and reduce the costs
of doing this compared to traditional methods. U.S-based
Forrester Research, Inc. estimates that a 5000 employee company
with $650 million (US) in sales can save about 43 % in customer
support costs and reduce support staff by almost 13%. Of course,
to achieve such savings, the web site must contain a number of
essential elements. These elements are further described in the
rest of the article.
Some of the essentials on a web site include (1) FAQ
documents (frequently asked questions), (2) technical support
documents such as manuals, (3) and emphasizing alternative
methods of contact such as telephone, fax, and email. Naturally,
the site must be intuitive, easy to navigate, easy to find
information, etc...
I believe that with the increasing popularity and ubiquity
of the Internet, more and more customers are in fact expecting
technical support web sites to be available. If a company does
not have such a site, it can be detrimental, despite offering
excellent 24 hour telephone and fax support. That is because a
company can be perceived as not being technologically up-to-date,
and that can turn into perceptions of uncompetitiveness,
incompetency, laziness, and less value for the buck spent. I
believe the sophisticated customer and corporate client of this
day and age prefers to contact a vendor's web site before making
a inquiring phone call. Such actions help a customer reaffirm the
vendor's commitment and effort in customer service and support.
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