November's edition of Internet Retailer features a story on what's ahead in the world of e-commerce.  One change the article predicts is how companies redefine the success of e-commerce by tying it to the contact center through services like click to call and click to chat.

The New York Times today reports on a topic we posted on a couple of weeks ago, despite the fact that online travel sales are growing, the total number of online customers seems to be declining in recent years.  Henry Harteveldt, Forrester’s online travel analyst is quoted in the piece saying, “Customers are tired of spending two or three hours trying to find the airline or hotel or vacation package that meets their needs.”  He adds that companies will continue to lose ground if they did not help online travel bookers overcome some longstanding hurdles.

Though somewhat under the radar, it appears as if Forrester Analyst Bruce Temkin recently launched a personal blog where he intends to cover customer experience and loyalty.  His most recent entry offers some interesting suggestions on how to treat customers.  As he suggests, it's not always as black and white as the "customer is always right."

1. “Right” is in the eyes of the beholder. 
   Enforcing a policy that’s in tiny print on the back of a sales slip may be legally correct, but that doesn’t make it “right.”
2. It costs less to solve a problem than you think.
   Firms build models to figure out how much they’re willing to spend to solve a customer’s problem. But these calculations typically do not factor in the downside associated with bad word of mouth and the upside associated with good word of mouth.
3. The best resolution is a quick one.
   If you’re going to fix a problem, you’ll get the most goodwill by doing it right away. Customer appreciate the pro-activeness and they don’t have to suffer through a period of anxiety.
4. Not all customers are equal. 
   Don’t use the same rules for treating your most profitable customers that you apply to your less desirable ones.
5. The customer is more often right than wrong. 
   If there’s any doubt; treat them like they’re right.

Bruce hits the nail right on the head, particularly with points 2 through 4.  Oftentimes, companies do get more caught up in the immediate cost of handling customer inquiries without realizing the potential revenue or long-term impact that they could be losing by brushing off their customers.  Also, identifying customer needs and status as soon as they connect with you goes a long way towards resolving their issues quickly, and delivering the right kind of service based on the individual customer's profile and needs.

John Ragsdale of the Service & Support Professionals Association (and eStara Thought Leader series alum) offers a few tips on what questions to ask vendors during your research.  Here are some suggestions he makes for managing the reference process and maximizing the effectiveness of each reference:

• Insist on references for any modules or functions that are critical for a successful implementation.
• Ask about “out-of-box” functionality vs. site customization.
• Request references in your vertical market.
• Similarly, request references using your technology platform of choice. 
• Go on-site. While some phone references are fine, go to a few customer sites and talk to the people actually using the applications, as well as the front-line managers for the service teams.
• Ask the tough questions. What worked and what didn’t? What would you do differently next time? What was more difficult than promised?
• Ask about “shelf-ware.” Did they implement all modules purchased?
• Don’t forget the “R” in CRM. These vendors are selling relationship software; they should be the relationship experts. What sort of relationships do they have with the customers?
• Conduct all or part of the interview without the vendor present.
• Finally, ask what the customer is getting in return for the reference.

ATG, eStara's parent company, announced a very cool competition this morning where they plan to award $60,000 to innovators in the field of e-commerce and online business.  According to this release, ATG will award the winner a prize of $50,000 in cash. A second “People’s Choice” winner will receive $10,000 in cash as a result of a public vote on the company’s blog, “e-Commerce Insights,” http://www.ecommerceinsights.com. Submissions, which must include an e-commerce element as a business-critical component of the success of the plan, will be judged on the inventiveness and creativity of their proposals, as well as on long-term business viability and likelihood of execution. The winner will be chosen by a panel of software and technology experts, influential industry leaders and business executives to be announced at a later date. All entries must be received by 5:00 pm ET on Wednesday, January 30, 2008.

The ATG e-Commerce Ingenuity Business Plan Competition is open to individuals or teams of e-commerce entrepreneurs, as well as seed or early-stage companies. To qualify as seed or early-stage, annual revenues or monies raised to date must be less than $100,000. Employees of ATG or its affiliates, volunteers, and their immediate family members and/or those living in same household of each are not eligible.

Examples of encouraged submission concepts could include:

• New technology offerings to attract and retain specific customer segments
• New solutions for creating loyal communities of e-commerce consumers
• Visionary user-interface developments or approaches to personalized e-commerce experiences
• Vehicles to deliver cutting-edge e-commerce experiences to new industries

To enter the competition, each individual or team must submit a completed “Competition Submission” form as found at www.atg.com/ingenuity/.