######################################## #Written by David Tam, 1999. # #davidkftam@netscape.net Copyright 1999# ######################################## 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.