Introduction
Electronic Customer
Relationship Management (e-CRM) is gaining the attention of e-business managers
who are interested in increasing repeat business and customer loyalty [17].
Although e-marketers or e-researchers have addressed the importance of customer
satisfaction and customer retention, the issues of customer dissatisfaction and
complaints in the Web environment have rarely been investigated. Online
customer complaints, as a Web-enabled market feedback, have illuminated the
origins and causes of online customer dissatisfaction. Online customer
complaints also show how e-businesses handle customer complaints – a reflection
of how much they value their customers. Successful e-CRM requires adherence to
a stable and consistent strategy that focuses on the goals of maintaining
customer loyalty and of using complaint handling data to solve problems and
address issues raised by customers [5, 6, 19]. The key e-CRM components to be
discussed in this paper include: i) maximizing customer satisfaction/minimizing
customer dissatisfaction; ii) increasing customer loyalty; iii) increasing
product/service quality; and iv) resolving customer complaints
direct
Online ComplaintsFeedback systems provide customer
complaints online. Customers using these system do not send complaints directly
to the companies that sold a product or service, but to a third party that not
only sends them to the targeted companies, but also disseminates the
information to a wider audience. These third-party websites post complaints as
open-ended messages (i.e., general opinions), structured feedback (i.e.,
rating) or a combination of the two [30]. While most feedback systems are open
to the public, some accept only registered users (e.g.,
http://www.complaints.com). Customers leave positive/ negative product/service
evaluations and comments/ opinions relating to a brand and/or product in the
feedback system after they make a purchase. By posting negative opinions, the
purpose of the feedback systems is to i) help others avoid the same pitfalls;
ii) help others avoid similar problems; and iii) exert leverage to solve
customer’s complaints (http://complaints.com). Non-profit organizations such as
http://www.bbb.org also provide a place where customers report complaints.
Although customers cannot share other users’ opinions/comments on the
product/service, these organizations protect customers and resolve their
problems. The BBB system has proven that the majority of marketplace problems
can be solved fairly through the use of voluntary self-regulation and consumer
education [http://www.bbb.org].
Implications for Web Customer
Complaint Handling Management
Previous studies of customer
complaining behavior have provided insights to businesses regarding which
changes should be made to remedy customer problems or restitute purchase or
usage-related problems [32]. This study proposed that handling customer
complaints should be included as a key component of e-CRM. By examining
complaint data, this study found that major online customer complaints and
dissatisfaction have been generated from the problems with Web customer service
centers. This result has implications for how e-businesses’ customer service
centers should manage customer complaints effectively. Specifically, this study
suggests that e-businesses should give faster feedback responses in an accurate
and kindly manner. Online customer service centers (also referred to as
“Web-enabled customer contact centers”: http://www.iir-ny.com) could provide
online chat services to their customers, more efficient customer self-help
centers, or a combination of several customer communication channels
(http://www.rightnow.com). Synchronous feedback system, of course, is the
fastest means of communication online. The primary point is that the lack of a
rapid response tends to increase the intensity of the original complaint. This
study found that most of the current online customer service centers, e.g.,
reviewed in this study, do not use a synchronous feedback system. Therefore,
online complaints are often augmented by customers who request rapid feedback.
The results also suggest that e-businesses should employ product
category-dependent strategies. Those e-businesses dealing with sensory products
(e.g., clothing, shoes, or cosmetics) need to develop better means of
delivering product information to customers who obviously cannot touch, taste,
or smell the object they are thinking of buying. Such e-businesses should put
more efforts on issues such as Web interface, design, and highly advanced technologies,
etc. An excellent example of using advanced Web features to achieve this goal
can be found at landsend.com. The company helps customers build a
three-dimensional mirror image known as “My Virtual Model™.” Those companies
offer highly interactive communication to reach customer satisfaction. Thus, by
making such effort, online companies dealing with sensory product can decrease
customer dissatisfaction and complaints. In summary, when approached as a
defensive marketing strategy [12], complaint management is now considered an
excellent competitive tool for e-businesses. Taking complaint management
seriously also affects product/service quality, website design, and operational
policies. Finally, the results of this and studies that appropriate online
complaint management facilitates repeat business and customer loyalty [12].
Efforts toward the effective resolution of customer problems serve as the basis
for long-term product and successful e-CRM.
