E-Marketing Do's and Don'ts.

Customer service is a linchpin to succeeding on the web.

THE NINETIES WILL GO DOWN in history as the decade that, thanks to computer technology, leveled the playing field for businesses throughout the world. With the advent of the Internet, small start-up companies began to successfully compete with large corporations in selling their products and services to a global market via the World Wide Web. Geographic boundaries were eliminated and business transactions became faster and more efficient than ever before.

Nowhere is the power of on-line selling more evident than in the success of amazon.com. The Seattle-based company, which began to market books on the Web in July 1995, had net sales of $610 million for fiscal 1998, a 313 percent increase over net sales of $147.8 million for fiscal 1997. Since opening its virtual doors, amazon.com has sold its products to 8 million people in more than 160 countries and today offers 4.7 million books, CDs, audio books, DVDs and computer games.

What has made amazon.com so successful? "Convenience and customer service," says John Tschohl, president and founder of the Service Quality Institute Minneapolis, MN. "Customers can place their orders 24-hours a day, seven days a week. They can get recommendations on books and music, sign up for personal notification services, and get an almost immediate response to their requests. Amazon.com is the role model for any company doing business on a Web site today."

Amazon.com appears to be the exception rather than the rule, however, when it comes to companies doing business via the Web. According to a recent report by media research firm Jupiter Communications, 42 percent of the top-ranked Web sites take more then five days to respond to customer e-malls or do not respond at all. "Lagging response times mean lagging sales," says Tschohl. "Most customers turn to the Web because of its speed. A Web-based company that doesn't respond quickly to its customers will lose those customers to companies that do."

While technology has been an unprecedented boon to business, it is not a panacea. If not used properly, it can leave customers frustrated and angry. "Customers who contact a business over the internet should be treated just as if they were standing in your office," says Tschohl. "Your response to their inquiries and orders should be prompt and courteous."

Tschohl offers the following suggestions for making the Web work for you:

* Respond quickly.

"Customers should receive a response from you within one business day," Tschohl says. "You might not have the answer that quickly, but business courtesy demands that you at least acknowledge that you received the customer's inquiry or order and that you are working on it. When my assistant orders a book from amazon.com, she gets an acknowledgement within two minutes and a shipping notification within five minutes. Many people send inquiries to several businesses before making a purchase decision. Often, that purchase will be made from the company that responds first."

* Be aware of the work habits of other cultures.

"When doing business on a global basis, it's important that you understand those cultures," Tschohl says. "A Service Quality Institute licensee in the Middle East criticized me for not responding to his e-mail within 24 hours. I had forgotten that businesses in he Middle East are not open Thursday afternoons and Fridays, but are open Saturdays and Sundays. As a result, we changed the message on our Web site to indicate we would respond to all inquiries within 24 hours or on Mondays, if the inequity was received during the weekend."

* Be knowledgeable.

"Knowledge of the product or service you are selling is vital," says Tschohl. "When receiving a customer inquiry, give a knowledgeable answer. If you don't know the answer, let the customer know you'll get the answer and respond within 24 hours."

* Confirm the customer's order or inquiry.

"One of the drawbacks of using the Internet versus the telephone is the lack of an immediate response," says Tschohl. "When a customer talks to you by phone, he knows you have received his message. It's equally important that he knows you have received the message he sent you via the Internet."

* Add a personal touch.

"Technology has the potential to de-humanize business transactions." Tschohl says. "If you want to succeed, add a personal touch to your electronic transactions. Address customers by name, and let them know their business is important to you. Also address their specific concerns and comments, so they know you actually read their e-mail."

* Use a live component with your technology.

"Many people like to use the Web to browse a company's products and service, but prefer to place their orders using an 800 number, fax or phone, says Tschohl. Use a combination of technology and people to offer your customers the opportunity to do business with you in whatever manner they prefer. No matter how advanced technology becomes, it will never replace human touch."

* Realize the importance of good communication skills.

"As technology has evolved, we have become more dependent on equipment and don't tech employees people-to-people skills," says Tschohl. "Whether your dealing with customers in person or via the Internet, you must know how to communicate effectively."

* Train your employees in the art of customer service.

"Competition for the customer is at an all-time high," says Tschohl. "Those companies whose employees are trained in the art of customer service will realize the greatest success. Customer service means doing whatever it takes to satisfy the customer.

* Don't by greedy.

"Invest a portion of your profits in maintaining and upgrading your equipment to provide the service that will keep your customers coming to you," says Tschohl. "That should include installing an automatic acknowledgement feature on your e-mail system, which lets customers know you received their message and tells them when they can expect an answer."

Without a doubt, technology will continue to drive the way we do business. That technology, however, will never replace the need for personal interaction. "if you combine computer technology with highly trained customer service people, you will have a magical combination.

Editor's note: John Tschohl is an international management consultant, speaker and author of several books on customer service.