Internet shopping is convenient and cheaper, say consumers.

M2 PRESSWIRE-31 March 2000-BT: Internet shopping is convenient and cheaper, say consumers (C)1994-2000 M2 COMMUNICATIONS LTD

RDATE:30032000

More than nine out of every ten customers who have purchased on the Internet find it more convenient than buying in a shop, and 75 per cent find it cheaper. Delivery is also more efficient from a website than over the phone or in a shop, according to some of the first findings of a major new customer relationship management study, "From teleculture to e-culture" conducted by BT and Siemens Communications.

The preliminary findings, which involved a survey of more than 1,000 consumers who have used the Internet, compared the experiences of customers who asked, over the phone or in a shop, for a product to be delivered with those who order on the web. Almost half (48 per cent) of those whose last order was not on the Internet experienced slow delivery, compared with less than a quarter (22 per cent) through a website. Forty per cent of non-web customers had to chase up the company, compared with just 15 per cent of web customers.

Even in payment, a major source of concern for Internet customers, bad experiences were three times more common for traditional purchases (with 12 per cent having experienced problems with payment) than for web buys (4 per cent).

The findings demonstrate that, once experienced, purchasing on the Internet fast becomes a favourite form of communication and fulfilment for users.

The initial report findings also have important implications on how larger companies interact with their customers. Of those questioned 67 per cent would prefer companies to contact them about relevant goods/services by e-mail, compared to only 17 per cent who said they would prefer to be contacted by phone at home. Indeed, among this same sample, 19 per cent said they would prefer to receive a text message on their mobile.

Clare Arnold, head of customer relationship management, BT Corporate Clients, said: "At a time when other 'panel' or 'expert' reports are writing off the first so called e-Christmas as a fulfilment nightmare, it is interesting to see the overwhelming extent to which consumers' own experience of the Internet is positive. What the study also makes clear, as its name suggests, is that consumers are happy to switch between new and traditional methods of purchasing and communication. The challenge for large companies is to learn more about this interchange and how their customer service can be improved and extended in light of it."

Phil Jones, Head of Siemens ProCenter's Business Consultancy Division added, "With today's intense pressures on building and maintaining close relationships with customers it is vital that the organisations which turn to the latest developments such as the web, digital television and the WAP mobile phone truly understand the underlying user trends."

The final "From tele-culture to e-culture" report will be released in Spring 2000.

Notes for Editors:

1. This research was carried out on behalf of BT and Siemens Communications by the Henley Centre.

CONTACT: Alison Cooley/James Sherwood, Le Fevre Communications Tel: +44 (0)171 563 6400 e-mail: james.sherwood@lefevre.co.uk Claudia Hitner, Siemens Communications Tel: +44 (0)1908 855751 e-mail: Claudia.hitner@siemenscomms.co.uk

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