I found this article in the business section of our local paper, what do you think; agree or not?
" Another trend for on line retailers, in the past ten years or so, has been the move to become more interactive with their customers.
A large part of this trend has been the move to sponsor customer product reviews and for some larger retailers, Internet message forums, in which customers can not only review products, but, comment on their shopping experience, and far beyond, participate in a wide variety of discussions from exchanging recipes and talking about their family and pets, to discussing world events.
For huge retailers like HSN and QVC, their message forums have become a kind of social networking site for customers.
But, these message forums are not without pitfalls, and they're certainly not inexpensive to maintain. So, are the rewards, in customer loyalty and increased spending worth it?
Probably not, say industry analysts. The smaller retailers and on line catalog sites, that allow customers to read and contribute product reviews, may well benefit in customer appreciation. "I won't buy on line, if I can't read product reviews; I don't depend on them completely, but, they are an important part of my buying decisions, since I can't see, touch, experience the product", a comment from a Lane Bryant shopper, is typical. Being able to read product reviews may well increase sales and just as importantly, decrease returns, the bane of online retailers.
But, for the big guns, who have gone much further to sponsoring message forums, the benefits are unlikely to come close to the expense and headaches of maintaining large message forums.
And there are headaches. Both HSN and QVC utilize outside companies to monitor their forums, and it can be 24/7 job. A few years ago, HSN had such a problem with abusive posters, that they shut down their forums and when they returned, had put in place a far more stringent system of guidelines and monitoring. QVC has never shut down their forums, but, in response to wide spread customer complaints about unruly posters, has in the last couple of years, moved to tighten monitoring the forums.
So, does being able to chat with fellow shoppers, not only about the shoes you might buy, but, also about whether you like the new Host or what to serve your new guy for your first home cooked dinner together, translate to more sales for retailer like HSN and QVC?
Benefits are probably limited, insist analysts. Customers who participate, especially regularly in these forums, tend to be older, long time customers, with well established buying habits. Being part of the forums and chatting with other shoppers may, to a small extent, increase feeling of connection to the retailer, but, the increase in sales is likely minimal. Occasional shoppers, and younger shoppers, probably don't even know the forums exist and aren't likely to take the time to sign up and participate, if they do.
So, why maintain the forums? QVC actually has a forum for customers to tell them where they're missing the boat, as well as a suggestion forum and a forum for what they're doing well. It's free feedback, albeit, as the retailer no doubt knows, customers who post, usually have their own agenda.
HSN says the forums are a way for the giant retailer and customers to connect.
And no doubt both retailers are banking on keeping the connection will keep the sales coming in."
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