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HEADS UP FOR THE HOLIDAYS — RESEARCH REVEALS BIG 'NET SPENDERS ABANDON WEB SITES DUE TO POOR CUSTOMER SERVICE

Servicesoft Survey Shows Email Is First Choice For Service But Fails To Meet Consumers' Needs

A study released today by Servicesoft Technologies, the breakaway leader in Internet Customer Service, reveals 87 percent of online shoppers who spent $2,000 or more on the Web in the past six months will abandon a merchant's Web site and click to a competitor's if they experience bad customer service. Combine these findings with the estimated $6 billion Jupiter Communications predicts will be spent online this holiday season, and the point is clear: Merchants who don't deliver good Internet Customer Service risk losing significant sales this year. Conversely, the study, conducted by Socratic Technologies Inc., proves that good online customer service increases customer loyalty. Seventy-nine percent of big `Net spenders said they have increased their patronage and spending on a Web site when the customer service experience is favorable (Figures 1 & 2).

According to Jupiter Communications, 10 million new Internet shoppers will turn to the Web for their shopping needs this year, a significant portion of which will make their first purchase in the holiday season. Intolerant of inadequate customer service, these shoppers are expecting the same level of service they receive from traditional brick and mortars. In order to keep customers coming back for more, retailers must heed customer service demands now, or risk losing customers forever.

"The huge revenue potential this holiday season marks merchants' big chance to prove themselves in providing customers the support they expect and deserve," said Chris Butler, president and CEO at Servicesoft Technologies. "Our research confirms that until merchants make their sites smarter in delivering email and other support, frustrated consumers will take their holiday shopping dollars to the competition. Only by implementing intelligent, complete customer service solutions that give consumers a choice of communication channels, will merchants capitalize on the next big wave of online shopping."

The Servicesoft study revealed 73 percent of wired consumers prefer email to other methods, such as telephone, as the primary way to get service online. However, only eight percent reported that email consistently meets their expectations. Consumers' problems with email include auto-reply messages that don't address their specific issues (reported by 69 percent), or a complete lack of reply altogether (reported by 65 percent). Additionally, 49 percent said that regardless of outreach and attempts to obtain customer service via email, their issues or problems are often never resolved (Figures 3 & 4).

Web users are highly receptive, however, to a complete online customer service solution, which offers a range of customer service choices including self-help, intelligent email, telephone and live agent interaction. Servicesoft's eCenter(TM), the industry's first complete Internet Customer Service suite designed to meet the full spectrum of customer service demands on the Web, helps companies provide consistent, high-quality answers across all communication channels and gives them the ability to offer premier customer service attention for loyal customers. An astounding 96 percent of the respondents said that such a complete customer service solution would be strongly beneficial to them when obtaining information on the Web (Figure 5).

Socratic Technologies, Inc. of Newton, Massachusetts conducted the survey on behalf of Servicesoft Technologies. Respondents were members of the Socratic Forum(R), a panel of Web users who have agreed to participate in online research, providing a cross section of the U.S. online population. A total of 836 online customers service users participated in the survey, conducted from October 6-13, 1999. Additional details on the survey's results can be obtained by visiting http://www.servicesoft.com.

About Servicesoft Technologies
Servicesoft Technologies Inc. (http://www.servicesoft.com) is the breakaway leader in Internet Customer Service. Its flagship eCenter(TM) delivers the industry's only complete end-to-end solution, comprised of best-of-breed applications for self-help, e-mail response and live customer interaction, all driven by the industry's most robust knowledge base. This complete offering is crucial to enabling companies to leverage the promise of the Internet in achieving a paradigm shift in customer service to drive initial sales, generate loyal customers, obtain repeat business, and do it all more efficiently than traditional methods. Major companies worldwide, such as Getronics-Wang, GTE (NYSE: GTE), Intel (NASDAQ: INTC), Cisco Systems (NASDAQ: CSCO), Motorola (NYSE: MOT), Verio (NASDAQ: VRIO) and NB Tel rely upon the company's award-winning offerings. The company's partners include leading call center, system integration and customer relationship management companies. Investors in Servicesoft include Sigma Partners, Internet Capital Group (NASDAQ:ICGE), Gemini, Sofinov, JL Albright, Grey Advertising (NASDAQ:GREY), FT Ventures, Intel (NASDAQ: INTC) and CIBC Capital Partners. Privately held, Servicesoft Technologies is headquartered in Natick, Mass., and has offices throughout the U.S., Canada and Europe.

Servicesoft and eCenter are registered trademarks or trademarks of Servicesoft Technologies, Inc. All other brands and products referenced herein are acknowledged to be registered trademarks or trademarks of their respective holders.

Editorial Contact:
Cynthia Keeshan
Servicesoft Technologies
416/256-1419 ext. 227
cynthiak@servicesoft.com

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