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How to Decrease Customer Turnover due to the impersonal touch of e-commerce - Research Paper Example

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How to Decrease Customer Turnover due to the impersonal touch of e-commerce

But the problem arises when it involves in a matter of customization or suggestion for a particular product. It mainly happens with the service sector. It can be better understood by an example. Suppose, in case of an insurance company, a customer may be in need of a child policy and he has various requirements. E-commerce will enable him to see all the available child policies. It will even ask for more specifications such as age of the child and his parents, premium amount, or amount of sum assured, mode of payment, etc but e-commerce can never really understand the actual requirements of the customer or his future expectations from the policy. Therefore, it will not show the most suitable policy for the customer. If the customer goes with the policy identified by electronic communication system, which will be the result of customized search option, then it may lead to future dissatisfaction of the customer and he may not opt the company for his next policy which will invariably decrease the customer turn over for the insurance company.
An electronic media can provide several options to the customers, even through it, a buyer or a seller can customize their choice but an electronic media fails to understand the need and requirement of the customer in the truest essence. That is why, they will not be able to provide apt suggestions or can not give a perfectly suitable product as per the customer’s requirement. Sometimes the customer might feel that they are less valuable for the organization because they find that there is no one to hear their requirements or problems and give a suitable suggestion accordingly.
E-commerce is not only used for purchase or selling products and services but also for customer care. When a customer will buy a product, he can directly choose the option for the product and can buy it at once or can go through the features of the products and then purchase it. But ...Show more


It is also known as e- business. In simple words, it refers to buy and sell of products and services through internet or electronic system.
The basic problem is that with the improvement…
Author : irvingkovacek
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