NFIB

Avoid Surprising Your Online Customers
05/ 03/ 2004

Recent articles in newspapers around the country cited the indignation of hotel visitors when they learned during checkout that their hotel bill contained unexpected surcharges for energy expenditures.

People felt that such a surcharge was unnecessary, even in the wake of the energy crunch in many areas of the U.S. Most hotel visitors, however, said that if they had known beforehand (during check-in or reservation) that the surcharge would be added, they would not have been so upset. The point is: tell people in advance what you'll be charging, and what the terms of the purchase are. In today's Workshop, Jeffrey Moses applies this principle to online shopping.

In general, customers feel that a company is most honest and reliable when everything about the buying process is made clear from the beginning. Online shoppers are especially skittish about being hit with unexpected charges. This wariness may be due to the lingering doubts of online security, or to the inability for customers to contact a person either face-to-face or on the phone during the online purchasing process. Due to the nature of the Internet, customers can vanish from a site with a click of the mouse and they will frequently do so when receiving unexpected news about what they're purchasing.

It's estimated that nearly 75 percent of all shopping cart transactions are aborted prior to final payment. The single greatest reason for this is the reluctance of e-commerce sites to state clearly, at the beginning of the shopping experience, exactly how much shipping and handling charges will be.

Including a "shipping and handling" button on the home page may be the best way to inform customers of these charges and of any applicable taxes. Many online retailers will tell you that this turns customers off. However, describing all policies right from the start can only enhance the customer's respect for the retailer.

Other surprises to avoid include:

1. Informing customers at the conclusion of checkout that the price they have been quoted is "after rebate." If an item offers a rebate through the manufacturer, tell customers up front so they can use that information as part of the basis for their buying decision.

2. Stating that terms or prices are good only for bundled purchases.

3. Informing customers that the lowest-cost advertised items are not available.

4. Stating that advertised discounts have expired.

Remember, information is the basis for selling, and sooner or later, customers will discover "the fine print." If you present these details upfront, you'll not only win their business, you'll also win their respect.

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