Archive for the 'business issues' Category

No Phone Number For You! Part I

I’m going to go out on a limb and take an unconventional stance on the subject of telephone numbers on websites.

Simply put:

No, you can’t have my phone number.

In my early days in ecommerce, I posted (and paid for) an 800 number which I prominently displayed in the header of my website. “Call us anytime!” And let me tell you, plenty of people took me up on this offer.

In the ensuing years, I went from the toll-free number to a local number, which did reduce call volume somewhat (but not as much as you might think).

Finally, over a year ago I took the phone number off my sites altogether.

There are a few circumstances in which I’ve given access to my phone number:

1) If you dig deep enough into some of my sites, you might find my (local) phone number that goes to my “Virtual Attendant” voicemail box. (Hint: scour the privacy policy - it’s in 4pt type somewhere in the lower third). However, this is always in proximity to a company email address, along with an admonishment that emails are answered much faster than phone calls.

2) If you buy something from me, I provide the afore-mentioned “Virtually Attended” mailbox phone number - again, with an admonishment that email is a more efficient method of getting assistance. This advice is reiterated by my Virtual Voicemail Attendant.

3) If you are a current client of mine (I’m not taking any more currently), you already have my cell phone number. You may call it, but you’ll pay me for my time. And even then, I may not answer when you call, or return your call as quickly as I’ll return your email. (If/when I take on more clients, they will most likely not be given this number).

Am I drinking the “4 Hour Work Week” koolaid? Maybe a bit, but I had already reached this conclusion through my own experiences well before I was introduced to the 4HWW concepts. Here are a few of my observations from my ecommerce ventures:

  • Having the 800# did not increase sales over having a local phone number.
  • Having a posted phone number (whether 800 or local) did not significantly increase sales. It did, however, significantly increase customer service costs.
  • The majority of people calling were not calling to place an order. They were calling for free advice, to complain about something we had no control over, or to ask questions that are clearly answered on the site.
  • Customers who placed orders over the phone were more likely to return items, initiate chargebacks, or otherwise demand further time and attention — and least likely to be repeat customers. In short: they were much harder to please, and generated less revenue.

Many ecommerce consultants will tell you to put a toll-free number on every page of your site. Now, I’ll concede that it depends on the market you are in, and that for some folks that’s the correct advice. If you are selling high priced items or programs that require that kind of interaction in order to close the sale, then by all means, you should have a prominent phone number (and make sure that it gets answered).

However, for sites selling lower priced items - and I’m talking $500 or less, maybe even $1000 or less - I don’t think you need one. In fact, I think it can be detrimental to your online business, both in terms of the actual costs of manning the phone line, and in the opportunity cost of devoting resources to a negative ROI activity.

Here’s a little experiment for you to try:

1) Go to Amazon.com and locate their 800 number.

2) Can’t find it? Ok, try their “Contact Us” page.

3) Can’t find a “Contact Us” page? Hmmm. Try their “Help Department” pages link near the bottom of the page.

4) Ahh… there we go. A “Contact Us” page. Oops, we have to sign in to get the phone number…

5) Where now…? Oh, there it is… a little “phone” button. Click that…

6) And if you can squint hard enough, you can see their phone number - and that will connect you to their “automated customer service system.”

That is a far cry from the “conventional wisdom”, wouldn’t you say? Amazon is arguably the largest ecommerce site in the world, and they certainly don’t have their phone number plastered everywhere for anyone to call whenever the mood strikes them. Not only do you have to hunt for the number, but you have to be a registered customer of theirs before they’ll even give you access to their automated system.

If you are running an ecommerce site, I think it’s important to realize the business that you are in and the type of customer that you want to attract. My ecommerce sites are online stores, not extensions of an offline catalog, and I run them like online stores. That is, the transaction is done online. I market online, my customers are online, they order online, and they can contact us online.

I’ve got more I want to say on the subject, but I’ll save it for next time. In the meantime, if you have a comment about this post, give me a call and we’ll chat.

Or, if you prefer, leave your comment right here on the website. Technology is awesome. :)

Yahoo Stores down on “Cyber Monday”, but not mine!

For a good part of one of the busiest online shopping days of the year, the Yahoo Stores system was reportedly down, causing shoppers and merchants alike a great deal of frustration. Check out this snapshot from the Yahoo Merchant Services system log:Yahoo Stores Down on Cyber Monday

(Source: http://updates.smallbusiness.yahoo.com/)

Looking at their timeline, it took over 24 hours for them to finally say that the issue had been resolved - ouch!!

CNBC has a full story here on this issue that has generated quite a bit of angst among a certain segment online businesses (and another article here). Sounds like there are a *lot* of unhappy merchants this morning. Here’s a quote from a merchant that had SIX online stores that were down yesterday: “All of a sudden, the bedrock of our company has been replaced with quicksand. I guess its time to diversify our merchant platform.” (Tom DePrato, quoted in the CNBC story).

I’m not one of those unhappy merchants this morning, though…

My ecommerce software and hosting combination is rock-solid, and all of my online stores worked flawlessly as they processed more orders yesterday than any other day of the year. It’s been rock-solid each and every year, and I must admit I never gave it much thought — until I heard about the pain many of my fellow online merchants have been experiencing with other solutions.

So, I’d just like to take this opportunity to say…

“Thank You, ShopSite and Lexiconn!!”