E-mail chat has been a common feature of the Internet for years, but when was the last time you were able to chat with a real live customer-service representative on an e-commerce site, in real time? A North Hollywood company named Net Effect Systems Inc. has developed a technology that aims to make such communication a lot more common. Though it is still a far cry from having a helpful salesperson inside a store, many believe this kind of enhanced customer service will help to attract a broader cross-section of consumers to e-commerce sites. “I think it’s becoming a differentiating factor in next-generation sites,” said Aubie Goldenberg, a partner at Ernst & Young LLP’s e-commerce group. “When you’re dealing with a straight commodity deal, you probably don’t have as big a need for an e-rep. But when you’re selling other products, like consumer electronics or cell phones, it can make a big difference.” Since it was founded three years ago, Net Effect has been selling its technology, which essentially works like an instant messaging system, to such e-tailers as Right Start. Last November, Net Effect was acquired by Emeryville-based Ask Jeeves Inc., whose browser allows users to navigate the Internet using conversational questions just as they would in plain speech. By incorporating its technology with Net Effect, Ask Jeeves can learn from and incorporate the questions asked to further enhance the computerized Web-browsing service. “Our mission is to humanize the Internet,” said Steve Roob, director of project management for Ask Jeeves. “In our mind, there’s nothing you can do that is more humanizing than connecting a human with another human.” Net Effect’s technology works this way: Consumers browsing a Web site click on a button to access a live service representative. Once connected, the rep and shopper communicate over an instant messaging system, asking and answering questions in the same way they would in a chat room. If shoppers are having difficulty pointing and clicking their way to a particular product or section of information, customer service reps can also take control of the browser, plunking shoppers down on the appropriate Web page. “We all have this view of some Utopian society where everything is automated, but the reality is, nothing replaces the human being,” said Julie Schoenfield, former CEO of Net Effect, who is now vice president for special programs at Ask Jeeves. While the process sounds similar to what makes chat rooms operate, Ask Jeeves officials point out that using such applications for e-commerce requires far more sophisticated technology. It has to include different applications for the customer service reps and their supervisors, as well as the capability to provide data that others can use for analysis and review of the company’s service and systems. “When you have hundreds or thousands of call-center representatives, you really have to make it industrial-strength and bulletproof, and put different applications in place,” Roob said. Its acquisition by Ask Jeeves will give Net Effect sufficient capital to expand and refine its technology. At the same time, Schoenfield said, “we found the technology went together, hand in glove.” Ask Jeeves currently works with some 80 corporate clients, including such major companies as Nike Inc. and Office Depot, brokerages such as E*Trade Group Inc. and computer companies such as Dell Computer Corp. Since the acquisition, company executives said they have already sold software packages that include services from both Net Effect and Ask Jeeves to new clients, including Airtouch. The Ask Jeeves browser works with something called “natural-language technology.” Instead of typing in keywords that may or may not match those on the browser, users formulate questions in the same way they would in a conversation. “What natural-language technology does is, it figures out what you meant by your questions, presents some alternate questions and leads you to the best available answer on the Internet,” Roob said. For example, type in “Who’s running for president?” and Ask Jeeves will present a number of Web sites offering information about the candidates from each party. Type in, “How do I go about starting my own business?” and Ask Jeeves offers sites on getting financing, writing a business plan and the home page of the Small Business Administration, among others. Used on corporate Web sites, the software helps users find what they are looking for without the sometimes-tedious trial and error of keywords. Adding live customer service provides another dimension, said Roob, that can help close a sale. “I liken it to what happens in a store like Nordstrom,” said Roob. “The customer service rep can show you around the store based upon your needs and interests and becomes a personal shopper for you. It’s a wonderful technology for people who are new to the Internet or just need a lot of personal services.” Some 39 million people shopped online in 1999, according to a recent study by Ernst & Young and the National Retail Federation. But while the number of shoppers visiting e-tailers has soared, the vast majority (an estimated two out of three) leave sites without making any purchases. Ernst & Young points to several reasons, among them high shipping charges. But the studies also show that many shoppers abandon their carts before making purchases because of a lack of information about the merchandise they are interested in buying.
