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Aussie businesses ignore online customer inquiries

By Ashley Clark
30 July 2008 08:07AM
Tags: business | online | customer | service | support | helpdesk

When it comes to answering your online customer queries, it looks like most Australian businesses can’t really be bothered.

While shopping for building quotes for a new backyard shed, Chris Moriarty, managing director of business development firm Strike Force Sales, filled in an online quotation form at the website for ReadyMix, Australia’s leading concrete supplier.

Eight months later, Moriarty has still yet to receive an answer.

So, he decided to survey the response times to online customer inquiries of other large Aussie companies, sending in about 460 queries to companies with more than 100 employees.

From the companies his team contacted, 59 percent did not answer customer inquiries within seven days.

“The results are surprising, when you think about how much energy companies put into marketing -- and then a consumer wants to talk about a product and the company doesn't bother ringing them back,” said Moriarty.

“You spend all this money on advertising and marketing and brand awareness and when customers knock on your front door, you don’t even respond.”

Only six percent of the companies responded to inquiries over the phone, and of those that did, it took an average of nearly three days.

While several companies sent automated response emails promising a follow-up, 49 percent of those companies never contacted the customer again.

Moriarty believes that much of this indifference to online inquiries can be attributed to the fact that most businesses see email as simply the domain of the IT department, with no accountability about what actually happens to the customer’s question.

“What we think happens is that the emails go to the IT department and sit in a database, and there's no process to track how long and how many emails are going through,” he said.

“There's no real management system in place, there's no one who is responsible for making sure this happens in an efficient fashion, and it’s just sloppy.”

He also believes that Aussies perhaps expect a lower degree of customer service than countries like the U.S., so companies here have never been forced to change their ways.

Today, Australian companies are spending over $1 billion on online advertising alone, and tens of billions on mainstream advertising that very often directs customers to the Internet.

Moriarty believes that those are and will continue to be billions wasted if Aussie businesses don’t start focusing on answering these inquiries and making a connection with their customer base.

“If it takes three days for a customer to get an answer, there’s a good chance that that customer has gone off and found someone else to help them in three days,” he said.

“It’s an area that businesses haven’t taken seriously, and it’s destroying all the money and effort they’re putting into their brand awareness.”

   


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Thoughts on this article? Add a comment below.
Comments: 9
Sad to see this article but I can assure you that when you do respond to customers it is worth it. I am appalled at the trend to removing real people from the front door of buisness. It has treached epidemic proportions in the USA and the trend in Australia is toward the same thing.

We get very strong endorsement from our global customer base for the fact that we DO respond and we DO provide service. On the back of that we have sustained >50% compound growth in sales for over 6 years and our business if >65% export.

Examples of customer response follow.
"Honestly, we have never received any speedier response from any other supplier in the world that we require support from.
Thank you. "

"The support your staff have given me in this has been amazing. We have received less than same day turnaround on our (sometimes fairly stupid) questions, with answers that are relevant and informative. We even received our own build of the driver for .Net framework 3.5 within the same day of asking for it!
I can tell you that based on the support alone, we will be using Grabba products on all our future contracts."


iTnews - comments icon Posted by Grabba FrankJul 30, 2008 10:17 AM
Whatever company you work for, Grabba Frank, I think you're the exception to the rule!

Overall, I think the stats that Strike Force Sales have found are accurate. I have sent countless e-mails to many companies who never replied at all!

And I'm not the only one who feels this way, I'm sure.

Keep up the great work though, you're obviously doing something right! Shame about the rest of them!
iTnews - comments icon Posted by Andrew BradburyJul 30, 2008 10:46 AM
I too have sent countless emails to companies around the world inquiring about products that often exceed $100K in value, and received no response.
I decided to go into business supplying products, and responding within 24 hours to enquiries. It is the small business model. The big ones rely on existing trade from enterprises reluctant to change.
So while its true, lets not make a big noise about it, lest they change!
iTnews - comments icon Posted by David HineJul 30, 2008 10:55 AM
Good article. I work in the marketing department of a medium sized business, and despite constant pushing, I would say that most of our web enquiries don't get followed up. When will companies wake up and treat these with equal if not more seriousness than a telephone enquiry? After all they are more qualified as the lead has already checked out your products/services.

My thoughts are that a lot of current sales people and many managers, do not understand this space and are therefore missing out. I don't think this is an area we can blame IT!

As an example I recently did a presentation showing that improving the usability of our site would gain us $6M of enquiries and about a 550% improvement. I was amazed that despite that year long body of evidence, none of the upper management have got behind it and when questioned they all seem to think that web enquiries aren't really real!
iTnews - comments icon Posted by FunkygJul 30, 2008 11:32 AM
"It is sad that companies including small buisness do ignor the enquiries generated from the net.I myself buy quit a bit from the net and those that answer you quickly and with knowlegde of there product gets the sale"
iTnews - comments icon Posted by John BoulterJul 30, 2008 1:35 PM
You can put this down to the fact that Companies do not see real time Multi-media as:
1. Important, and
2. The cost associated with it prohibits most companies.

There are however cost effected solutions on an "all-in-one" platform that handles, calls, web-chats, email, web call-me-back and faxes REAL-TIME into Contact Centre (CC) queues where agents in the CC handles them as if they were a phone call.

Companies more than likely do not even know this cost effected solutions exists.
check out www.inin.com
iTnews - comments icon Posted by BrendanJul 30, 2008 9:01 PM
This article is unfortunately true. I am more surprised when someone does respond online than when they do not. However I find computer shops generally rely on this so you will get a quick response but not always. However the big companies rarely do. I remember placing a complaint to Ultra Tune about its quoting system for repairs to the State manager. I never got a phone call even an email. All their great TV ads meant jack as far as I was concerned. Even to this day, when I see one of their ads, my subconscious says “forget them.” And “Don’t recommend them.”
iTnews - comments icon Posted by Terry TremethickJul 31, 2008 10:38 AM
Good article.
It wasn't surprising for me to read this after my personal and professional experiences. I work with all different size businesses on lead generation strategy and a common pattern is the lack of accountability, attitudes toward quality and no set structured system in place for follow up. So many businesses rely on a steady flow of leads yet fail to maximise oppourtunity, I find it ironic that the same statistics in this article are similar to statistics on volume of failed businesses every year.

Any online enquiries at our business get answered that day if received between 9am – 5pm, feel free to test us out.

www.lgco.com.au

Request Robert in the online form
iTnews - comments icon Posted by RobertAug 8, 2008 3:26 PM
Yeh - not surprising. The flip side is that many small businesses on the net have been gems for me! I'd rather deal with a one man Aussie business in Whoop Whoop than tangle with the big guys. LOL
iTnews - comments icon Posted by DeniseOct 29, 2008 11:43 AM
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