Promise not to tell and I'll gladly shop online

[August 17th 1999]

Online consumers not yet buying on the Web report that trusting a retail Web site to keep their personal information private is the number one attribute that would persuade them to start buying online, according to NFO Interactive, the online market research firm.

A total of 4,523 online consumers, both buyers and non-buyers, took part in a yet-to-be released major research study, "Online Retail Monitor: Branding, Segmentation & Web Sites" conducted by the Greenwich, Connecticut-based NFO Interactive, that examines the buying habits, attitudes and trends in online retailing.

The NFO Interactive online consumer panel was asked to prioritise attributes that would entice them to shop and purchase items at a retail Web site. Among the top five attributes cited were:

1. Trust that the site will keep personal information private
2. The site offers a secure environment to purchase products
3. The site is technically reliable
4. The content is up to date
5. Products ordered are delivered in a timely fashion

"These are the very attributes that characterize offline or conventional shopping," said Tim Washer, NFO Interactive's Director of Research & Consulting. "The most successful online retailers will closely simulate the bricks-and-mortar shopping experience by approximating the offline experience, online. They will succeed in transferring their established brand attributes to the Web. For new Web-only retailers, the key to building brand equity is to understand their target market and its online customer service expectations and then, converting those expectations into Web site attributes. What worked for Amazon.com may not work everyone else."

Interestingly, of the 1,944 online consumers who have not purchased a product online, the key attributes of a retail Web site that would entice them to purchase online are:

• Assurance that their privacy would be protected: 69.4%
• Offered larger price discounts: 65%
• The ability to return a product to a bricks-and-mortar store: 28%

"In their drive to create the most productive Web sites, online retailers should consider how the advantages of the offline world can support online sales. For example, retailers should consider implementing technologies that provide surrogates for the 'in-store' level of customer service, such as Internet telephony, or chat, to enable a direct, live conversation with a company rep right off of the Web site," concluded Washer. "Indeed, our studies indicate that just over 20% of online buyers would buy more if this type of surrogate offering were available. More importantly, 15% of the 'frequently buyer' segment stated they would become a loyal shopper of the site if it provided this live connection."

Links
NFO Interactive		http://www.nfoi.com