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Peppers and Rogers Group Study Reveals Improvement in Privacy Policies and Customer Interaction among Top Rated Web Sites

Most Sites Still Struggling to Improve Response to Customers

Stamford, CT, September 12, 2000 - What makes a successful Web site? Should a company’s focus be on cutting-edge technology or building customer relationships? These and other questions are explored in One to One Online, the fourth edition of the Peppers and Rogers Group research study that evaluates the best practices of top one-to-one Web sites. Overall, winning sites displayed the ability to identify and differentiate essential customer information in order to provide goods and services designed specifically for each customer, based on needs and preferences. Those sites, designated as Best of Breed, include representatives from ten industry categories such as financial services, travel, apparel/accessories and office supplies.

One of the most significant findings reported in One to One Online is the dramatic change in Web site privacy policies. Since early 2000, major e-commerce sites have strengthened their consumer privacy protection practices and more prominently display their privacy policies. To strengthen privacy practices, 48 percent of those sites surveyed indicate that they will not share customers’ personal data with outside parties, and half the sites allow customers to opt out of such arrangements.

Of particular concern is the ongoing struggle for timely response to customers. One to One Online found that as many as 45 percent of the sites surveyed still have unacceptable email-service response, with almost a quarter of the sites (21 percent) never responding at all. In contrast, top-rated Web sites answer customer email queries within 2 hours (only 25 percent of the total sites surveyed attained this high level of service.)

Regarding responsiveness to consumer demand for convenience, One to One Online indicates that sites using “one-click” ordering to cut shopping cart abandonment rates have more than doubled since the previous study conducted in February - from 20 percent to 45 percent. Yet another key finding reveals that top one-to-one retailers are accelerating adoption of “clicks and bricks” capabilities by merging in-store with Web-based activities. Well over half the Web sites for companies with traditional bricks-and-mortar stores (65 percent) now provide consumers with the option to actually buy or return items selected online to their stores - up from only 22 percent with this capability in February.

"This ongoing study is unique." explains Peppers and Rogers Group One to One Research Director, Jonathan Brookner. "It not only focuses on why certain Web sites are more engaging than others, but also on each site’s customer focus and one-to-one functionality. When evaluating sites it is amazing to see why certain Web sites are so far ahead of others - simply put, they provide their customers with what they want, in a way that is user friendly.”

The approximately 400 Web sites evaluated in the study were either identified through published research, or nominated by CRM experts. Of those Web sites, finalists were narrowed down to 64 sites in ten different industries. The extensive audit examined each Web site on 32 “one-to-one” capabilities and finalists were narrowed down to the “top One-to-One” Web sites.

Highlights of the One to One Online report include a discussion of the meaning and value of each one-to-one capability and an examination of the strengths and weaknesses of those sites evaluated by industry type. New features include in-depth profiles of best-practice one-to-one Web sites as well as interviews with numerous leading Web site executives and vendors detailing strategies and practices.

The One to One Online, fourth edition winners are: (alphabetically by industry)

Apparel/accessories
- Altrec
- Fogdog
Book/music video (Entertainment)
- CDNow
Department stores/mega-malls
- Amazon
- Yahoo! Shopping
Drugstore/vitamins
- Drugstore
- Mother Nature
- PlanetRx
Financial services
- American Express
- Charles Schwab
- DLJ Direct
- E*Trade
Financial services (continued)
- Fidelty
- Fleet/Bank of Boston
- Merrill Lynch
- USAA
Home and Garden
- Furniture
- Garden
Office supplies
- Works
Travel
- Biztravel
- Expedia
- Northwest Airlines
- Travelocity
- United Airlines

About Peppers and Rogers Group

Based in Stamford, Conn., Peppers and Rogers Group is a management consulting and media firm that develops implements and communicates customer-focused business strategies. Built upon the one-to-one business practices created by Don Peppers and Martha Rogers, Ph.D. and their associates, Peppers and Rogers Group has earned global recognition for its ability to understand and communicate how technology is changing the way companies build relationships with their customers.

Peppers and Rogers Group’s corporate profile includes the most up to date, innovative consulting practices, educational programs, keynote presentations, book and magazine publishing, and most recently a one-to-one executive search firm. Its global client list includes Fortune 200 companies in the automotive, computer, consumer goods, financial services, media, telecommunications, Internet and other industries.

For more information regarding One to One Online, contact Jonathan Brookner at 203-969-0801, extension 3207 or jbrookner@1to1.com.
 
Editorial Contact:
Kathryn Kavicky
Peppers and Rogers Group
203.324.7590
KKavicky@1to1.com
 
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