Online shops throw away 1.9 billion Euros in profits in the first quarter of 2005
40 percent of unfinished transactions are abandoned due to technical problems
Reliability and user friendly features are the key to success in the e-commerce sector
Online shops throw away turnover totaling over 1 billion Euros
1.88 billion Euros in potential turnover: this is the total profit thrown away by German online shops in the first quarter of 2005 alone. These are the results of an evaluation carried out by IT service provider, novomind AG, using current business figures. The reason for these heavy losses: two out of five potential customers abandons a web transaction due to technical problems. Cryptic error messages, slow page display speeds and database crashes annoy customers and slow down turnover.
Ease of use and reliability are decisive factors
Despite the increasing numbers of shoppers in Germany who are turning to online retail outlets, there are still no national quality guidelines and standards governing internet shop providers. Yet reliability and easy-to-use features are the key factors for e-commerce success. For example, 40 percent of German internet users have at some point abandoned an online purchase due to technical problems which occurred during the order process. One in three got lost in complex site structures and left the site as a result. "Ease of use and reliability have always been vital elements in e-commerce sector shop systems," as Peter Wiedekamm, managing director of novomind AG, sums up the situation. "And as the competition is in most cases just a mouse click away, sooner or later, these criteria are going to make or break a provider."
novomind analyses online shops and finds room for improvement
A good online shop is only as good as the systems on which it relies. But seven out of ten online shop providers conplain that the technology often fails to deliver what it promises. However, it’s not always the software alone that’s to blame for customers’ and retailers’ dissatisfaction - because e-commerce is a sector that is constantly developing. A system that fulfilled yesterday’s requirements can be the profit killer of today. To help online retailers avoid this trap, novomind AG provides them with the support they need to set up successful shop concepts. Comprehensive evaluations pinpoint errors and improve online shop processes to guarantee that potential customers will click on them and not the competition.
novomind: software solutions for professional customer communication
novomind AG is the leading provider of digital customer communication solutions enabling optimized processes and lower costs. novomind’s products and solutions offer future-oriented customer service, competent, personalized communication and boost customer administration to achieve a more rapid return on investment and long-term, sustainable customer loyalty. The product department’s portfolio includes e-mail management systems, as well as virtual customer services assistants and systems for interactive communication in real time. The novomind services department develops complex e-business applications, including scalable online shop solutions. Leading companies from across the market sectors - including Citibank, Bertelsmann Der Club, EnBW, Mexx, Otto and Travelocity, as well as public sector representatives such as the German Federal Ministry of Health and Social Security (BMGS) - have already successfully implemented novomind systems to boost customer loyalty, turnover and public relations.