May 2003
VoIP Enabled E-Commerce
BY IRVIND S. GHAI
Between 1999 and 2004, it is expected that e-commerce retailers will have
lost $173 billion in sales due to poor service, according to
Datamonitor. Approximately 90
percent of all on-line transactions are abandoned before completion. This
astounding figure is often attributed to the lack of the familiar human
element that provides reassurance and sales advice in competing
brick-and-mortar businesses. Voice over IP (VoIP) has started to address
this void in e-commerce by giving customers the ability to speak with sales
staff as they browse online through a vendor�s products and services. The
technology foundation for this shift has already been laid. Microsoft has
said that personal computers running its Windows XP operating system will
support the VoIP SIP protocol. In addition, VoIP is becoming integrated with
Voice XML browsers. These developments, coupled with speech recognition
technology, are affording e-commerce customers the ability to have their
questions addressed and answered with live human interaction. The end result
of these advances is to successfully walk customers through the process of
closing their transactions, and minimize instances of abandoned
cyber-shopping carts.
While many are attracted to the convenience of shopping online, visitors
frequently leave a vendor�s Web site without clicking that all-important
final �Place Order� button. Very often this is due to a lingering doubt
about some attribute of the product or service under consideration. In many
instances, simple reinforcement by the vendor is all that would be required
to drive the sale through -- benefiting both the customer�s and merchant�s
bottom line. The need for this final push has not been lost on companies,
and many have implemented IP-based communication systems to facilitate the
flow of information to customers in real-time via the avenue that is most
convenient to them.
These modes include instant chat, which allows the customer to initiate a
real-time text conversation with a salesperson. The agent can then address
any questions or concerns that are raised, and discuss the product
attributes to help close the sale. Such systems also enable the salesperson
to push a Web address onto the customer�s browser -- helping the customer to
visually view the pertinent information. However, the key value of IP-based
communications systems is giving shoppers the click-to-talk ability. This
enables customers to initiate a cost-free VoIP session with a qualified
sales agent who can then provide a reassuring human voice and walk them
through the final steps of the sale.
VoIP enabled e-commerce has been bolstered, in part, by Microsoft�s plans to
enable all personal computers with telephony through VoIP. Microsoft�s
Windows XP operating system supports the VoIP Session Initial Protocol
(SIP). SIP provides signaling and call control for IP-based communications
-- initiating and routing a user�s call to the proper party. With its
HTTP-based roots, SIP offers easy integration of voice with other Web
services, enabling multimedia communications such as video conferencing and
chat, that enrich an e-commerce Web site. SIP has helped change the face of
e-commerce by offering online customers multiple avenues to secure
information in a manner that best appeals to them. These innovations are
also reflected in the changing call centers supporting eCommerce vendors.
The conventional 800 number call bank that might be employed by an eCommerce
merchant can now be replaced by a more efficient IP-based communication
center capable of managing different multimedia channels that enrich the
traditional voice based communications. All of this results in better
customer relationship management, regardless of how a shopper chooses to
contact the vendor.
Once on the Web site, a shopper can simply click a phone icon to contact the
IP-based communications center. The user�s computer, via SIP, will contact
the VoIP gateway at the vendor�s end. Here, a router card will act as the
media gateway, with all call processing and switching functions done via
packets. An independent server is used to manage call control. In the case
of multiple call center sites, this provides simple and centralized control
over VoIP streams. In addition, a media server can be used to provide music
on hold, announcements and Interactive Voice Response (IVR) functionality.
Such IP centric call centers provide a scalable and flexible architecture
for call routing. Depending on the size of the vendor, multiple call centers
can be set up in different geographical areas, with centralized headquarters
call control and media servers being leveraged across the different sites.
The IP centric call centers also help eCommerce vendors reduce costs by
eliminating the need for TDM components in addition to maintaining a data
network.
IVR is another key element helping enable eCommerce. IVR is based on speech
recognition technology, which now has recognition reliability rates in the
90 percent range. Different IVR platforms leveraging VoiceXML
browsers/interpreters enable users to make queries and get intelligent
responses on the Web site. The XML-based language is used to format data for
voice-based interactions in a manner similar to how HTML is used to format
data for the Internet. By standardizing on VoiceXML, standard user
interfaces have been established, allowing multiple third parties to deliver
applications and content for the burgeoning eCommerce speech segment. VoIP
has helped take this even further by making VoiceXML products become even
more powerful and cost effective for eCommerce applications. Different
companies are introducing products that support both VoiceXML and VoIP. This
will further enable eCommerce because users will be able to place free or
low-cost VoIP calls via the Internet to the applicable VoiceXML browser to
access products and services. This results in reduced long-distance charges
both to vendors, in the case of toll free 800 numbers, and end customers.
Consequently this will reduce the costs associated with the deployment of
Voice Web services.
VoIP is proving to bolster the acceptance of eCommerce by providing that
reassuring human element as customers make their final �Place Order� click.
The associated technologies and protocols around it are providing multiple
avenues for customers to secure information from online merchants -- via
video, text, and interactive Web browsing as sales agents talk the customer
through the buying process. Through the use of VoIP, vendors will also be
able to convert their call centers to IP centric ones, thus reducing overall
operational costs while adding new services and features.
Irvind S. Ghai is worldwide high-density voice manager for Texas
Instruments� Voice over Packet Business Unit. Texas Instruments is a world
leader in digital signal processing and analog technologies. For more
information, visit the company online at
www.ti.com.
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