Making VoIP Part Of Your E-commerce Solution

BY MATT JONES

If the holiday shopping frenzy of 1999 taught Internet retailers (e-tailers) anything, it was that customer service is still the biggest barrier to having a truly successful e-commerce business. According to a recent Jupiter Communications report, companies can boost profits by as much as 100 percent just by retaining an additional 5 percent of their customer base. With reports of high abandonment rates and e-mail questions often going unanswered, e-tailers are finally beginning to accept the inevitable: customer service on the Web requires a real-time solution to best address the needs of the consumer. As a result, e-tailers, manufacturers, and other companies that offer customer service and support via the Web are beginning to deploy real-time voice communication over the Internet (voice over Internet Protocol, or VoIP).

TECHNICAL CHALLENGES
The most challenging aspect of providing telephone-quality VoIP to online customer service is the fact that you can't control the Internet. The Internet is a collection of connected networks that sends information dynamically, seldom using the same routes twice. Compare this to a traditional telephone system, which establishes a dedicated connection between two points. With a dedicated connection, all the data follows the same route -- delivering performance that is consistent and predictable. Since all the traffic on the Internet shares the same connections, a consistent level of predictability is impossible.

With current Internet telephone applications, each endpoint sends voice data to the other endpoint. In some cases this works fine, such as when both users are geographically close to each other on the network. Too often, however, the traffic cannot flow reliably enough to enable a high-quality experience. Many Internet phone products are subject to the current state of the Internet and make no provisions for Quality of Service (QoS). With a solid network and best-effort routing, these barriers can be quickly overcome.

Many companies have previously tried to provide telephone-quality voice services using today's Internet, but have failed. Today, though, we are closer to attaining this quality level than ever before, because voice service providers realize success depends on their ability to transmit high-quality multi-point voice conversations on the Internet. There are many technical challenges to overcome just to make the experience work, but it can be achieved. Robustness and dependability are key to building a successful service and establishing Internet voice as a serious communications medium.

The benefits of this application are that it requires no additional outside hardware or integration support. Integrating VoIP into your e-commerce site can be as simple as adding 15 to 20 lines of HTML code -- a relatively pain-free process to bring exponentially higher levels of customer service. The voice service providers take care of the rest -- building and maintaining a fast, scalable network to deliver minimal latency and high sound quality. This eliminates the need for e-commerce sites to deploy a complicated application and ensures the highest quality service for the consumer.

CUSTOMER CHALLENGES
The second most challenging aspect of providing telephone-quality voice service over the Internet is that you can't control the user. VoIP service providers can only focus on making the service as intuitive and easy-to-use as possible. To use VoIP on a Web site, consumers need an Internet connection, plus a computer with a soundcard, speakers, and microphone. Service providers have already developed featherweight applications that will support any e-commerce site. In less than a minute or so, customers can download your VoIP application using a 28.8 or faster Internet connection, install it into any browser, and start speaking immediately through their PC. The call can terminate to a customer service representative answering either a PC or a phone.

When visiting a Web site, consumers can click a button to speak to a customer service representative. Depending on the e-commerce site's preference, online customer service options appear at various places throughout the shopping experience. Some sites choose to offer varying levels of support depending on whether or not items are in the shopping cart, the time of day, or the page that is being visited. For example, a site may offer live support during business hours, and offer e-mail, FAQ, and call-back support to after-hours shoppers.

INTEGRATION WITH E-SALES/E-SERVICE
According to Jupiter Communications, an online shopper's desire for human contact leaps once the purchase price exceeds $50. Even with this information, VoIP service providers realize that voice isn't the only way to keep customers happy and provide them with human contact. To provide the highest level of customer service, Web sites should strive to design a multi-channel, automated customer service strategy. For instance, retail sites can offer live chat, e-mail, and possibly phone service to qualified users. Content sites can use chat functions for special circumstances, like live events in addition to e-mail, FAQ, and instant messaging. Because these applications all need to work together, it's vital for VoIP services to integrate easily into other e-service offerings.

Companies that provide these services are called eCRM (electronic customer relationship management) service providers. eCRM providers offer a variety of customer support tools such as instant messaging, text chat, e-mail management, and specially-trained customer support representatives. eCRM companies include, but aren't limited to: eGain, FaceTime Communications, Kana Communications, PeopleSupport, Quintus, and ServiceWare.

Web sites that offer real-time online customer service today provide the best care by offering a multi-faceted approach. E-commerce sites like Miadora, a high-end jewelry site, offer several levels of service -- telephone, fax, e-mail, instant messaging, and voice -- to help their customers choose the jewelry that's right for them. Other e-commerce sites like Land's End and 1-800-FLOWERS also offer multi-tiered customer service including live text chat and call-back features (where a customer service representative calls customers back by phone).

E-commerce sites aren't the only companies that are providing VoIP to their online customers. Traditional companies like American Express and Compaq are now offering real-time voice communication over the Internet in select customer care centers.

A PREDICTION FOR EXTINCTION
E-tailers -- especially those whose survival depends on impeccable service to build brand loyalty and maintain solid customer relationships -- can no longer delay deployment of real-time voice-enabled customer service solutions. Sites that don't provide real-time voice communication over the Internet as part of their customer service offerings will become extinct in the new Internet economy. So, if you haven't taken VoIP seriously before because you thought it wasn't viable, it's time to reconsider. E-customers are asking for it.

Matt Jones is president and CEO of Cupertino, California-based Lipstream Networks, Inc., a provider of real-time voice communication over the Internet. Lipstream enables real-time voice communication for e-commerce, customer service, distance learning and community applications. Lipstream is privately held and investors include American Express Company, Compaq Computer Corporation, Crosslink Capital and Sequoia Capital.