Live person selling can be more profitable than web orders

Over the past decade or more, companies have been automating their web ordering/selling engines, in the quite reasonable belief that it is a lot more profitable to take orders over the web without a live sales person answering the phone than it would be to pay a real human being to do the same job.

But that may not be true.

Yesterday I called Road Runner Sports to ask a product question that I needed answered before I could place an order through their web site.  As I thanked the person who answered my question and tried to sign off so that I could complete my web order, she financially incented me (with a discount) to stay on the phone and place the order through her.  Which I did, of course.

Why would Road Runner Sports want to tie up a live person to do something that a server could do infinitely cheaper?  It was so she had the opportunity to further sell and upsell me.

This is something for all web vendors to consider and evaluate; lower cost of sales doesn’t always mean greater profitability.

Ralph

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This entry was posted in customer satisfaction, retail, sales and tagged , , . Bookmark the permalink.

One Response to Live person selling can be more profitable than web orders

  1. This is a great example of effectiveness trumping efficiency. Having met the CEO of Roadrunner many years ago when they were much smaller, it does not surprise that he knows the difference and it has resulted in a successful company.

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