Consumers Give e-Tailers High Marks for Customer Service Despite Dip in Online Spending This Holiday Season

ATLANTA--(BUSINESS WIRE)--Jan. 30, 2001-

Survey results reveal that 74 percent of shoppers are very satisfied with their recent online purchase experiences, yet order fulfillment and returns remain challenges

The majority of online shoppers are satisfied with the level of customer service they received in the last three months, according to results of the Excellence in Customer Service Survey sponsored by Witness Systems and conducted earlier this month by International Communications Research (ICR).

While the survey reported that consumer spending for online purchases over the 2000 holiday season came in under projections that did not seem to impact the level of customer service e-tailers provided.

Of the 50 million U.S. adults covered by the statistical model of the survey, 74 percent who made online purchases over the past three months were very satisfied with their experiences - a significant increase over similar studies conducted last year. Results indicate that the number of repeat purchases will increase as the level of customer service improves, with three-fourths of the online purchasers reporting that they are very likely to make additional purchases from the sites where they received customer service.

In addition to the high customer satisfaction levels, the survey highlighted challenges many e-tailers still face, specifically with order fulfillment. According to the results, 19 percent of online purchasers received an item late, and one in six plan to or have returned their purchases. "If e-tailers want to survive in this market, they must realize that whether a customer walks into a store or visits a Web site online, the expectation for good customer service does not change," said Lisa Hager-Duncan, CRM and business technology analyst for Gartner.

The survey also indicated that consumers value the ability to choose the communications media in which they interact with companies. E-mail was cited above telephone, live text chat and fax, which is good news for retailers since it is one of the most cost-effective channels available today.

These results clearly support the need for companies to continue focusing on Web-based customer service by raising their standards for these types of interactions. Traditionally, forward-thinking companies have dedicated the necessary resources and processes to ensure their customer sales/service representatives (CSRs), or agents, effectively respond to and meet customers' needs via the telephone. However, as call centers have evolved into multimedia contact centers, they have been challenged with applying the same high quality standards to Internet points of interaction, especially as consumers have become more technology savvy.

For example, e-tailers are beginning to dedicate more resources to effectively communicate with their customers via e-mail and collaborative Web chat by implementing such technologies as multimedia customer interaction recording and performance analysis software. "Just as agent-handled phone calls need to be reviewed for adherence to internal policies, so do e-mails," said Hager-Duncan. "Companies should establish a formal quality assurance program for outbound e-mails that includes developing quality assurance evaluation forms, an agent evaluation and review process, and agent training to make adjustments for mishandled e-mails." By capturing and evaluating the quality, consistency and service levels tied to multimedia communications, companies can gain valuable insight into how effective they are at selling to and servicing their customers - information that can then be used to develop and implement the people, processes and technologies needed to heighten customer loyalty and increase revenue.

"These survey results demonstrate that e-tailers have made steady progress toward prioritizing and improving their Web-based customer service," said Dave Gould, president and CEO for Witness Systems. "E-tailers are getting the message that poor customer service over the Web can hurt their businesses. By using such online best practices as recording and analyzing performance, these organizations can help ensure customers are loyal to those sites that provide sound online service."

Other results from the Excellence in Customer Service Survey include:

About Excellence in Customer Service Survey sponsored by Witness Systems - a leading global software provider specializing in solutions that enable companies to optimize their customer relationships - the Excellence in Customer Service Survey is a research initiative focusing on customer service and satisfaction issues. The survey was conducted January 5-14, 2001 by International Communications Research (ICR), headquartered in Media, Pennsylvania, through a national semi-weekly telephone Omnibus survey using a single-stage, random-digit-dialing (RDD) sample of 1,000 telephone households. Findings were weighted to the U.S. adult population age 18 and older with a margin of error at +/- six percent at the 95 percent confidence level.

About Witness Systems

Witness Systems (NASDAQ: <A HREF="aol://4785:WITS">WITS</A>) is a leading provider of recording, analysis and electronic learning management software that enables companies to enhance their customer interactions across multiple communications media. Its eQuality(TM) suite of products is designed to further extend the ability to record, evaluate and analyze complete customer contact based on user-defined business rules. Witness Systems' software is deployed by contact center managers as a training tool to improve the performance of agents and as an evaluation tool to gauge business process effectiveness - all in an effort to help companies deliver world-class service. Witness Systems has installed its products in a multitude of industries worldwide, including automotive, financial services, healthcare, hospitality, insurance, outsourcing, publishing, retail, telecommunications, travel and utilities. Witness Systems' news, product and service information is available on the World Wide Web at www.witness.com or by calling 770.754.1900.

Cautionary Note Regarding Forward-looking Statements Under the Private Securities Litigation Reform Act of 1995: Information in this release that involves Witness Systems' expectations, beliefs, hopes, plans, intentions or strategies regarding the future are forward-looking statements that involve risks and uncertainties. These include statements about Witness Systems' strategies in the marketplace, its market position and its relationship with customers. All forward-looking statements included in this release are based upon information available to Witness Systems as of the date of the release, and the company assumes no obligation to update any such forward-looking statement. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. The factors that could cause actual future results to differ materially from current expectations include, but are not limited to, fluctuations in customer demand and the timing of orders; the company's ability to manage its growth; the risk of new product introductions and customer acceptance of new products; the rapid technological change which characterizes the company's markets; the risks associated with competition; the risks associated with international sales as the company expands its markets; and the ability of the company to compete successfully in the future, as well as other risks identified in the company's Securities and Exchange Commission filings, including, but not limited to, exhibit 99.1 to the company's Annual Report on Form 10-K for the fiscal year ended December 31, 1999 and any other reports filed from time to time with the Securities and Exchange Commission.

Witness Systems and eQuality are registered trademarks of Witness Systems. All other trademarks mentioned in this document are the property of their respective owners.

CONTACT:

Witness Systems
Anne Milner, 770/754-8656
amilner@witness.com

or

Porter Novelli Convergence Group
Reade Longino, 404/995-4547
reade.longino@pnicg.com