Interesting article on where the web might be going, among other
places as well.

---------- Forwarded message ----------
Date: Sun, 14 Jun 1998 06:36:16 -0400 (EDT)
From: Peter Altschul <[log in to unmask]>
To: [log in to unmask]

from business week, 6/22/98

              Future electronic support will blend digital and human help


   Since electronic commerce became all the rage two years ago, most of
   the buzz has been about selling products online. But for long-distance
   phone carrier MCI Communications Corp. (MCIC), the focus was
   elsewhere: on delivering customer service over the Internet. Now, MCI
   customers with PCs can monitor their accounts and pay their bills
   without so much as licking a stamp. By early fall, they'll be able to
   click an icon to get a service representative to talk with as they
   continue surfing the Web--assuming they're a good customer, that is.
   Since MCI's sophisticated system identifies the caller in seconds, big
   spenders get help within three rings, while penny-pinching
   carrier-swappers must wait until after priority customers get the
   first-class treatment.

   Such digital hand-holding is still rare, but companies are catching on
   quickly to the advantages of cyber support. Today, businesses
   operating at least partially on the Net handle 13% of their customer
   inquiries electronically, according to Forrester Research Inc. (FORR).
   Already, a third of all online businesses are building sophisticated
   systems that will automate everything from order-taking to customer
   complaints, ActivMedia says.. ''Customers are just begging for
   electronic support,'' says Michael J. Betzer, MCI's vice-president for
   information technology.

   The reach of the far-flung Internet into homes and businesses should
   have benefits for buyers and sellers alike. For buyers, it means no
   more schlepping down to the mall to deal with cranky clerks. At the
   same time, companies stand to gain huge cost savings of 30% or more,
   even while improving service.

   Consider Wells Fargo & Co. (WFC), the San Francisco-based bank. Its
   450,000 consumers with electronic accounts have instant access to
   online information such as account balances and interest rates. As a
   result, these customers place calls to the bank just 1.4 times a
   month--40% less than other customers. Wells Fargo now figures it can
   expand electronic accounts to 2 million in the next three years while
   keeping support costs flat.

   Still, most of today's online help systems fall short of the
   red-carpet treatment. Sure, they supply some tailored responses--such
   as account balances--but most just offer boatloads of information and
   expect customers to find their own answers. In a world where customers
   can jump to a rival with the click of a mouse, that ''self-help''
   approach may not be enough. ''People are time-starved and want to get
   answers in a way that's convenient,'' says Forrester analyst Maria
   LaTour Kadison. ''Businesses that don't respond to that will lose.''

   CLICK HELP. Already, a new vision of electronic support is taking
   shape--an approach that blends digital and human help. For starters,
   auto-reply E-mail systems will answer simple queries. Online mortgage
   broker American Finance & Investments Inc. answers 65% of such
   questions--such as: ''What are your current rates?''--in seconds. AT&T
   (T), Nike Inc. (NKE), and others are using a technology that
   determines the proper response to more complex problems by
   ''interviewing'' the customers through a series of pop-up online
   forms.

   For inquiries that are beyond any computer's expertise, so-called
   tele-Web technologies are the answer. These software programs let
   stumped customers get help from a real person as they surf.
   1-800-Flowers Inc. and others allow consumers to click on an icon and
   start an interactive chat with a service rep.

   Laggards that wait much longer to ramp up their online support do so
   at their peril. Already, American Express Co. (AXP) has grabbed a
   dozen big clients largely because of its planned online services,
   including features such as city maps to help customers choose a hotel.
   Says Jeff Bezos, CEO of online bookseller Amazon.com (AMZN): ''You
   have to treat every customer as if they can tell thousands of people
   about the service. Because they can--and they are.'' Fortunately, more
   may soon be saying how good the service is--not how awful.

   By Peter Burrows in San Mateo, Calif.