Most B2B sites are pretty bad, says US-based market research house,Forrester Research. The firm scanned 30 B2B sites and discovered that notone of them measured up on value, ease of use and reliability. Their designwas so bad that they just turn off potential users. They had littlecustomisation, and mobility on the site was rather poor, said Forrester.Glitches were ubiquitous and, horror of horrors, information that waspromised was simply not there.Forrester points out that customers often had to pile drive through sevenlayers of information to find what they were looking for. Search facilitieson B2B sites were generally not up to the mark. Results were oftenirrelevant and it was impossible to refine searches.
Forrester Research was also alarmed by the fact that only half the sitesallowed people to buy products and services online and only 13 per centposted the necessary info needed at each stage of the purchasing process.Just a fifth of the sites facilitated purchases in more than threecurrencies while only 23 per cent offered more than three language optionsfor users.
What does this mean? Should we paint the entire B2B segment as black. Notreally. Look at General Motors. It is looking at generating about $50billion in online revenues in 2000. GM plans to place its entire $87 billionannual purchasing budget on its TradeXchange system by the end of 2000. Thecompany is also trying to persuade its 30,000-odd suppliers to transact witheach other on TradeXchange, which has been up and running for the past threemonth. It is looking at charging one per cent access fees for TradeXchangewhich could tot up to about $5 billion in annual revenues in five years orso.
What benefits is it looking for? Faster purchases of parts and supplies andsavings in transactional costs for both GM and suppliers. Lots of paper isgenerated between GM and its suppliers and this tends to not only slow downtransaction but also add to cost. It is also hoping to sell an additional50,000 to 100,000 cars annually from its consumer portal GMBuyPower.com.
With growth as it is planning, it had better get its act together. Here's anillustration: the world's largest company conducted business deals worth apaltry $1 million on the site. Will Jack Smith meet his company's target?Or will the GM gameplan turn out to be a lemon? We'll have to wait andwatch, but until then, if US-based B2B sites put up such a bad show onForrester's study, what grades will Indian B2B sites get? One shudders tothink about it.
Beep before they board
Here's a tip for government-owned airlines: instead of simply allowingpassengers to choose their food online, shouldn't they also find a way ofkeeping them informed about delayed flights, where they should board, andcancellations? Take a look at what United Airlines is doing. It e-mailspassengers this information as long as they agree to be open to such aservice.
Messages are sent to a customer's personal computer, text-enabled cellularphone or alphanumeric pager, enabling travelers with wireless capabilitiesto stay abreast of schedule changes even when they are on the road. All thatcustomers have to do is long to the United Airlines site and complete apaging request form. The address: http://www.ual.com There's more: they canchoose to be alerted when the flight is delayed by 15, 30 or 45 or 60minutes. What's even more fancy is the fact that visitors to the site canactually research and book their tickets with another 500 airlines. Will anAir India or Indian Airlines or even a Jet look to top that?
More hopping than shopping
Now, here's some shopping statistics and polling courtesy AndersenConsulting. A survey conducted by the firm has revealed that 73% ofrespondents rated the internet as a better shopping bet than traditionalbrick and mortar stores and mailing catalogues. Among the benefits thatshoppers perceive are competitive prices, convenience, and the fact thattime is saved when everything is bought from one source.
72 per cent of them went to the extent of saying that they would definitelybuy day-to-day use goods over the Net in the coming year. That's despite thefact that 40 per cent of them faced some problem or the other duringChristmas shopping. The snafus have put off four per cent of them fromshopping online next Chrismas.
What were the problems they faced? Sixty-four per cent said goods theywanted to buy were not in stock. The rest of the hassles were on thefulfilment front. Forty per cent complained of delayed deliveries.
Thirty-eight per cent blamed the retail outlet of fleecing them on deliverycharges. 36 per cent whined that the world wide web was really a world widewait when waiting for downloads. Twenty-eight per cent simply did notreceive a confirmation report after making their purchase. Other gripesincluded: limited product ranges on sites, navigation problems, paucity ofinformation, high prices and not enough gift ideas on sites.
What would make them shop in future? asked Andersen The answers: 98 per centsaid free shopping; 95 percent wanted a guarantee of timely delivery; nosales tax on the net said 91 per cent of the shoppers; 83 per cent of themthought promotions were cool; live online customer services; product reviewsfrom other customers; tips on colours and sizes and free gift-wrapping andgift ideas.
(The author is developing a portal http://www.indiantelevision.com. Reachhim at television@vsnl.com and television@hotmail.com)
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.