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Less than 5 percent of the people who visit an online retail site actually buy something. Compare this with the performance of someone who drives up and parks at Wal-Mart or a supermarket. No one walks away from this trip empty-handed. Why don t people buy on the Web Many sites are still too dif cult to navigate. Flashy graphics that take minutes to download turn people off. The rigidity of shopping online is frustrating. My experience is typical. When Orbitz.com opened its travel site, I was one of the rst to use it. I ordered a cheap Thanksgiving ight to Manchester, New Hampshire, for Helena and me. Then I called my son David, who said that the timing was wrong. Orbitz.com would not let me change my ight times, despite several emails. I ended up wasting $400. My travel agent has always been able to make changes in nonrefundable ights. The irony of the situation is that when Thanksgiving rolled around, I received a maddening email from Orbitz.com telling me to get ready for my wonderful trip to Manchester. I will never again use Orbitz.com for anything. Its in exible method of operation turned me off permanently. Its customer service was totally unresponsive. This is not what the Web should be.
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To keep more customers, Web retailers have had to change their ways. To attract and hold customers, Brooks used a service called the Angara Reporter that collected demographic information, such as age, gender, and location, from At Home Corp. s MatchLogic.com and Engage Inc. visitor pro les to create a rough idea of the kinds of customers who visit particular types of sites. Brooks used this information to personalize the content that visitors saw and to tailor offers on the basis of the pro les. Angara s pro le was based on a database of 100 million Web visitors. Visitors to Brooks s site were sorted by the site s best guess as to gender, marital status, and geography. Different visitors saw different home pages. A woman visitor would see a different page from that
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shown to a man. An unmarried younger man might see a different page from that shown to an older male. Brooks expected that this feature would offer a level of personalization that its regular stores could not match. Yet, as of this writing, Brooks has yet to make a pro t. What can we learn from this There are many very sophisticated and clever things that you can do using a database to create sales to consumers on the Web that you could not possibly do in regular merchandising. These things all cost money. Total Web sales are very tiny in comparison to retail sales. These clever things have yet to produce a lasting pro t for anyone. Anyone trying to sell consumer products on the Web (with a few exceptions, such as Amazon and eBay) is going to lose money for the foreseeable future.
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Commercial Web sites should make it very easy for customers to nd dealers. This sounds like an obvious suggestion, but in fact it is often very dif cult for manufacturers to provide a dealer locator. Most goods are sold through wholesalers or distributors. These folks keep the dealers names to themselves. Yet providing information to the ultimate consumer is a very ef cient way of delivering customers to dealers and building total market share. How can you nd dealers Follow the money trail. Make it easy and pro table for dealers to be identi ed. To do this, have a Web microsite where dealers can provide their location, phone number, directions, store hours, and other such information (Figure 3-2). When dealers come to your microsite to register, have them provide the name of the wholesaler or distributor that supplies your products to them. Once your Web site has captured the dealers name, the Web site can automatically send the information to the appropriate wholesaler or distributor for veri cation before it becomes a part of your consumer Web site dealer locator. Some wholesalers or distributors will help you in this process; others will not.
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