by Tom Ahearn

Another new buzzword has jumped on the Net.

If you're an eBusinessperson, you better learn this one.

"CRM" (as in "Customer Relationship Management") will be critical for eBusinesses that have lost sales after failing to deliver on whatever promise they used to drive traffic to their sites in the first place.

And for very good reasons.

Studies show that while people shop on the Web for convenience, price, and variety, they fear giving out credit card information.

A recent poll from Harris Interactive found that 92% of users are uncomfortable sharing personal information with a Web site, 88% are concerned that information will be used to send them other data, and more than three out of four worry their credit card information will be passed on without their permission.

And what are eBusinesses doing to calm those fears?

Not too much, according to a study from PricewaterhouseCoopers, which found that 67% of Web sites surveyed didn't have easy-to-find security disclosures, and 21% of them had no security policy disclosures at all.

That same report revealed that while almost nine out of ten sites were explicit about how to set up an account, one-third did not inform customers how to access their account if they lost or forgot their password, over half failed to recommend a minimum password length or suggest more secure password techniques, and over three-quarters did not disclose whether inactivity lockout was enforced or if the account would be deactivated after a number of failed login attempts.

Believe me, the last thing eBusiness wants or needs are consumers who will be too afraid or confused to e-shop 'til they drop this upcoming holiday season.

Which is why "CRM" is becoming more popular -- and more necessary -- by the nano-second. And, also more profitable.

According to a recent report from IDC, revenues in the CRM services markets will increase from $34.4 billion in 1999 to $125.2 billion worldwide in 2004, a growth rate more than twice as fast as the expected increases in the overall IT services market.

The research found that customers' elevated expectations will be major factor in the growth of CRM services, and those companies that provide a higher degree of service will have the competitive advantage.

Currently, outsourcing/operations management is the most frequent activity in the CRM services market, generating 67% of the market's revenues in 1999. Although this activity will continue to be the most popular through 2004, its share will decrease to 60% in 2004 while -- at the same time -- implementation services will increase from 19% to 25%.

So all eBusiness has to do is make the customer happy.

Hardly a new concept.but a timeless one.

And although credit companies like American Express and Visa are initiating plans to increase consumer confidence in e-commerce, concerns about online fraud still linger.

Again, for very good reasons.

The National Consumers League (NCL) revealed that consumers lost over $3.2 million to Internet fraud in 1999, and the Federal Trade Commission (FTC) received almost 18,000 complaints concerning Internet fraud that same year.

In addition, online merchants themselves estimate that anywhere from 5% to 25% of their transactions are fraudulent.

A related survey, again from our friends at PricewaterhouseCoopers, found that credit card security was largest barrier to online purchasing, with 79% of respondents citing it as the number one reason why they were hesitant to buy a product on the Internet. Other reasons for avoiding e-shopping included the refusal to disclose personal information (77%), the inability to see and feel merchandise (65%), shipping and handling charges (55%), lack of trust in online merchants (48%), and unfamiliarity with online shopping sites (40%).

However, the news isn't all bad, as evidenced by reports that suggest online fraud is out of control are themselves fraudulent.

A new study ("Real Numbers Behind E-Transactions, Fraud & Security") from ActivMedia dares to suggest that selling goods and services over the Internet is as safe -- even slightly safer -- than selling in brick-and-mortar establishments.

97% of more than 1,000 eBusinesses surveyed said that fraud is either "not a problem" at their Web sites or that it occurs with "with minimal impact on business." Conversely, only 2% of eCommerce operations surveyed said that fraud is "somewhat" of a problem, and just 1% considered it "substantial".

On average, companies lost 1.23% of their revenue to fraud committed via eCommerce, while offline sales resulted in losses of 1.5%. Of those reporting losses due to online fraud, 96% reported that they lost 5% or less of revenue.

True, the respondents might be downplaying their fraud problems, especially at a time when consumers are loudly voicing their concerns about fraud and privacy on the Net.

Still, the consumer's innocently blissful romance with the Internet is clearly over.

Now shopping on the Net is just another case of "What have you done for me lately?"

According to another survey -- this one of Web consumers from market research firm Cognitiative -- online shoppers will demand speedier performance, fewer technical glitches, and better customer service from Web sites this holiday season.

The survey also found that e-commerce sales this holiday season will come primarily from consumers who shopped and bought online last year, and these experienced Web consumers will be more focused on the performance of Web sites and less tolerant of problems than they were a year ago when online shopping was somewhat of a novelty.

This year's shoppers will be very demanding in terms of site speed and real-time product availability and fulfillment, which means 2000 could be the watershed year for many e-commerce efforts because those Web sites failing to meet performance expectations of these now-savvy customers will be abandoned.

Translation: if you want to keep last year's customers, you better give them what they want THIS year.

So what do online consumers want?

Basically, everything. and then some.

They want Web sites to be available 24-7, pages to load instantaneously, and a one-click shopping process. They also want to know if a product is in stock, when it will ship, and when it will arrive.

The last point -- product tracking -- was THE major complaint from last year's holiday season after many customers bought a present online only to have it not arrive on time (if it arrived at all).

Santa Claus never missed a delivery and, apparently, neither should e-tailers.

This holiday season, eBusinesses are advised to examine the scalability of their servers, the functionality of their software, the speed of their network access, and their caching architectures. Basically, make sure their site meets the needs of the most sophisticated online shoppers.

And they better do it fast, or else the "Grinch" of disenchanted customers will steal their Christmas sales.

eBusiness sites have barely waited for summer to end before adding new customer-oriented features in time for the holiday buying season in an effort to win loyalty and avoid another damaging round of negative publicity from unhappy customers.

According to another recent survey from IDC -- in which over 100 online merchants were asked what features their Web sites have and which features they plan to add -- customer-touching features are a top priority.

The results are revealing. The percentage of business-to-consumer (B2C) sites offering interactive customer services will increase a staggering 110%, reaching 41% by spring of 2001.

Special content/services for registered visitors will skyrocket even further. Less than 23% of B2C sites offered this capability in spring 2000, but almost 48% plan to add it within months. Online order tracking is another feature B2C sites are busy developing, with the percentage offering this capability expected to double from less than 22% to almost 40%.

The message is clear: the customer is ALWAYS right.

Always has been. Always will be.

Especially when it comes to eBusiness success.