Infographic: Online Retailers’ $44 Billion Customer Experience Problem

A new study by Harris Interactive and Tealeaf shows that online retailers lost as much as $44 billion last year due to poor online customer experiences.

HP online shop


Have you ever tried to buy a computer online? Head to HP and you’ll be swamped with options. Do I want a laptop for everyday computing? Ultra-portability? High performance? Envy? Oh, what’s Envy? On Dell’s shop, you’ll find more of the same: a slew of laptops offering “uncompromised performance” or “best-in-class performance” or “style and performance.” What’s the difference?

Shoppers are bombarded with confusing choices like these every day, and online retailers are paying the price. According to a new study by Harris Interactive and Tealeaf, retailers may have lost as much as $44 billion last year due to bad online customer experiences. The statistics illustrated in the accompanying infographic below are alarming; unfortunately, they’re overshadowed by the graphic’s poor design–an odd mix of iPads, high heels, and Microsoft Word-like clipart–which perhaps demonstrates just how difficult it is to create an effective user experience.

“There’s huge opportunities for people to improve this and make a lot more money,” says Geoff Galat, VP of global marketing at Tealeaf. Galat points to companies such as Amazon and Apple which have made an art of online retail. “Apple has simplified the process and made every part of the user experience as elegant it can be. Amazon CEO Jeff Bezos says he is ‘relentlessly focused’ on customer experience.”

With shoppers spending more than $144 billion online every year, it’s no wonder Apple and Amazon are obsessed with perfecting their purchasing experiences. According to the study, when faced with a problem, close to a third of online shoppers choose to abandon the transaction entirely, rather than, say, trying again or contacting customer service.

“Many companies follow, for lack of a better term, the ‘shiny object,'” explains Galat. “The bells and whistles: adding some widget, or fancy video, or Flash, or real-time Twitter feed with customer feedback. But the biggest players out there–the Amazon’s, the Best Buy’s, the Zappos’s–they don’t really have that stuff.”

The key, he says, is having a simplified, streamlined user experience.


“If you’re dealing with an insurance company or bank, you’re not going to switch companies because of one bad transaction,” explains Galat. But with a bad online customer experience, “all I have to do is hit the back button and I’m right back at Google with thousands of other options selling the same thing.”

About the author

Austin Carr writes about design and technology for Fast Company magazine.