A recent study of 500 online retailers by Bain & Co., which was published in The Standard on March 6, 2000, found that even the most successful online B2C players, such as Amazon.com, eToys and the Gap.com, capture only 20 to 30 percent of the potential revenue of their current customers, and less than 10 percent of the potential value of all visitors.

The study also found that repeat customers at 10 popular retail sites spent 57 percent more than one-time shoppers; And that loyal customers appear willing to expand their shopping across categories. For example, almost 70 percent of Gap Online customers said they would consider buying furniture from Gap Online.

Lastly, Bain & Co.'s study found that for the 10 leading eCommerce sites, 20 percent of customers on average were converted from visitors to buyers, 10 percent were up-sold and only 5 percent of customers returned within 6 months. There is plenty of room for improvement!

Bain & Co.'s recommendations echo the Client-Centered selling philosophy, "E-retailers must treat customers as assets, not as transactions."

1. Set expectations and live up to them.
2. Deliver what you promise.
3. Provide a fair price for your products and services.
4. Provide good customer service. Good customer service is highly correlated with customer loyalty.
5. Make your customer's life easier. For example, use stored customer information to facilitate your customer's online purchase process.

For more information see eMarketing Keynote 2005.