Document Type

Conference Proceeding

Publication Date

Spring 3-18-2021

Abstract

The present study explores the link between customer service features and conversion rates for the 500 largest online retailers in the U.S. market. Twelve distinct customer service features were examined, including auto-replenishment, co-branded credit cards, currency conversion tools, free shipping, free return shipping, in-home services such as product installation or in-person consultations, live chats, providing website content in multiple languages, next-day delivery, online return processing, paid memberships with enhanced customer services, and same day delivery. Consistent with previous studies that indicate typical conversion rates in the range of 2-4 percent, the mean conversion rate for the firms in our sample was 3.194 percent. In addition, the findings indicate that customer conversion rates were significantly higher for firms offering auto-replenishment, free return shipping, home services, paid memberships, and same day delivery. As such, managers may want to emphasize these features when developing e-commerce websites.

Comments

Funding for this study was provided by the University of South Carolina Magellan Scholar Award Program for Undergraduate Research.

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