August 07, 2002
Making Mistakes WellIncrease online revenue with contingency designMatthew Linderman
If you aren't practicing contingency design, you're abandoning customers when they're most frustrated. Help them find their way, and they'll be back to buy again.
Imagine you're at Target and you ask for a mop. The clerk sends you to the electronics section. Or you go to Best Buy to fix a problem with your TV. The store's representative answers your concerns with arcane industry acronyms like MTS, PIP, INVAR, and SRS. Unfortunately, these sorts of customer service failures are all too common online. A search for "mops" at Target.com actually does return a list of electronic appliances, but no mops. If you have problems at Networksolutions.com, the company will offer solutions with confusing acronyms.
Online or offline, it's impossible to be perfect. But while offline customers can appeal to an actual human being for help, frustrated online customers usually just give up. That's why Web sites must learn to make mistakes well. By improving contingency design, online businesses can help customers recover from mishaps, while increasing conversion rates in the process.
Contingency Design ExplainedContingency design is design for when things go wrong. It's error messaging, graphic design, instructive text, information architecture, and customer service that helps visitors when a problem occurs. Yet no matter how much testing and quality assurance has gone into a Web site, customers will encounter problems. And, Web sites consistently fail their customers at crisis points. Poor contingency design is directly linked to abandoned shopping carts. The Boston Consulting Group discovered that five of the top ten reasons for failed purchases are common contingency design problems. From mislabeled item availability to confusing form errors, customers who were otherwise satisfied with their online experience were driven away by sites that failed them during the checkout process. By frustrating these customers during checkout, you may lose them for good. The same BCG study revealed that 41 percent of customers who experienced failed purchase attempts stopped shopping at problem sites. Only 9 percent of unsatisfied online shoppers visit the same site again, compared with 90 percent of satisfied shoppers (according to Forrester Research). These missed opportunities mean lower revenues and higher costs (lost customers increase a company's overall customer acquisition costs), which few online businesses can afford.
Success StoriesSmart sites use efficient contingency design to improve site performance and satisfy customers.
LandsEnd.com decided it could do more than just display the typical "out of stock" message for unavailable items. Instead, the site now presents an inventory alert feature that tells shoppers when an item will be available, offers to send email notification when the item arrives, and shows shoppers similar items that are available immediately. The conversion rate at LandsEnd.com is 11 percent, one of the highest among online apparel retailers. Site creators say that this sort of dedication to the customer is a major reason why.
Macys.com more than doubled the rate at which it converts site visitors into buyers by effectively planning for inaccurate search queries. Mistakenly enter "Kalvin Klein", for example, and the site still returns results for Calvin Klein. Macys.com executives said that planning for this contingency has led to a big boost in the site's conversion rate.
Amazon.com realizes that it's very easy to type an extra w, or to omit one from a Web address, so the company accounts for this common mistake. Type "ww.amazon.com" and you'll still get the Amazon home page.
Hotmail.com prevents fruitless attempts to pick a sign-in name by presenting available alternatives that closely match the registrant's original choice. If the username janewilson is taken, the site informs customers that janewilson5 is available. Examples like Lands' End and Macy's demonstrate that planning for failure can result in clear improvements in usability and conversion rates. Amazon and Hotmail's methods show how sites can use preemptive measures to increase customer satisfaction.
GuidelinesSo how can online businesses help customers in trouble? Here are just a few guidelines to help you plan for the worst:
Use language that your customers understand.
Don't make customers guess.
Account for common mistakes.
Offer customized Page Not Found error pages.
Briefly and clearly explain what's happening.
Reduce the need for constant back-and-forth between pages.
Make sure the browser's Back button works.
Don't require registration to assist customers. When customers encounter a crisis point, they need help. This is not the time to give them a form to fill out.
Use bright colors, icons, and directions to highlight the problem.
Small Changes, Dramatic ResultsContingency design is easy. Most fixes require a tweak or two, not a major overhaul. By planning for out-of-stock items, typos, and other common mistakes, you can have a large impact on how your customers respond to your site. These relatively minor changes yield immediate, tangible resultsa potent formula for any online business that's looking to increase revenues quickly.
Matthew is a design and usability expert at 37signals (www.37signals.com). For more information about contingency design, visit the 37signals project DesignNotFound.com.
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