Service on the Internet seems intent on mirroring the state in the offline world. To sum it up in one word: Struggling. Sure, there are exceptions to this statement, but business appears to have a general tendency to provide less than exceptional service, regardless of how much service is touted as a priority.
A                      great example of really bad service is our experience with                      our last webhosting service. On their home page they proclaim                      they are "world class", yet their attention to customers                      and interest in what customers experience was simply pathetic.                      Like many companies, they think they're great nonetheless.                      We switched hosting services after two weeks with them. I'm                      sure you've had similar experiences online.
                     
                     A good starting point for many online companies (you might                      work in such a company) is to spend less time and energy putting                      extra "bells and whistles" on their site. A new                      study from PricewaterhouseCoopers found that most online shoppers                      do not use these extra features. They could also spend more                      time training their employees to provide good service and                      rewarding employees accordingly. Having knowledgeable employees                      who interface with the customer would be a good start as well,                      and giving them responsibility with authority would                      be great.
You                      can also go a long way towards perfecting your customer service                      by understanding customer perceptions of the service encounter.
                     
                     In case you're in the dark about why customer perceptions                      matter here, well, customer perceptions are the holy grail                      of marketing. While many companies spend time asking customers                      what they want from service, but not how they perceive                      what level of service is currently being offered.
                     
                     NEW PERSPECTIVES ON SERVICE
                     
                     With a profound commitment to understanding customer perceptions                      as a means of perfecting your service, the question immediately                      arises what factors affect a customer's service perceptions?                      You can start to answer this question by reading our tutorials                      on The Usually Forgotten                      Basics of Good Service and How                      to Measure Service Quality.
                     
                     Now, a recent article in the Harvard Business Review by Richard                      Chase (who wrote our article "The                      Ten Commandments of eService") and Sriram Dasu                      shows how you can use the theory of behavioral science to                      perfect your service. Both are professors at the University                      of Southern California.
                     
                     What is behavioral science? It's a field of study that shows                      how everybody has a bias in the way they process information,                      and this bias affects their attitude, behavior, and perceptions.                      You can see a good example of this bias in our article "Why                      You're Always Right, and Your Customers are Always Wrong."
                     
                     Here are some of the insights you can use:
                     
                     Finish Strong
                     
                     Last impressions--not first impressions--endure.
                     
                     You think the beginning and the end of a service encounter                      is the same for a customer? You're wrong. People tend to remember                      the last experience they have with a company far more than                      the first impression. 
                     
                     This is one of the reasons why the service of many online                      companies is perceived so poorly. While they might perfect                      the  customer experience at the beginning of a purchase process                      - usually through a good technology that searches and sorts                      products - they blow it when you try to check out. Unexpected                      delivery charges, failed credit card confirmations, and no                      toll free numbers to remedy the situation are a customer's                      last experiences. This is what remains in the customer's recollections.
Segment                      The Pleasure, Combine The Pain
                     
                     Behavioral theory says "Segregate Gains, Integrate Losses."                      In other words, people like good things to be spaced out over                      time. In that way, good experiences seem longer. In contrast,                      people like bad things to be bundled together - in that way                      they can get it over with fast!
                     
                     So if you're going to hit customers with bad experiences or                      bad news, get it all over with at the same time. Spreading                      bad service encounters out over time is like getting "nickeled                      and dimed" to death.
Get                      The Bad Experiences Out Of The Way Early
                     
                     Speaking of bad experiences, you might be the type of that                      feels you hate delivering bad news, so you delay it until                      the last possible moment. This is exactly the wrong thing                      to do. In a sequence of events involving good and bad outcomes,                      people prefer to have undesirable events come first.
                     
                     "Get bad news, pain, discomfort, long waits in line,                      and other unpleasant things out of the way as soon as possible                      so they don't dominate the customer's recollection of the                      entire experience," says Professor Dasu.
Build Commitment Through Choice
The                      power of the Internet has given many companies the sense that                      they must provide an instantaneous response to customers.                      But more than an instant response, customers want choice.                      Behavioral theory has shown that people are happier when they                      perceive they have control over a process, especially an uncomfortable                      one.
                     
                     So make sure to give your customers choices when you need                      to give them bad news. For example, don't just tell them that                      what they ordered is not in stock; give them a variety of                      choices on how to handle that situation. Remember, customers                      want to perceive they have some control.
Give                      People Rituals, And Stick To Them
                     
                     People find comfort, order and meaning in repetitive, familiar                      activities. In particular, we find comfort in processes to                      which we've grown accustomed. The step-by-step procedure we                      go through at a restaurant is an example (sit down, get menu,                      give drink order, get drink, order, etc.). The procedure itself                      is comforting, and a break in the procedure causes not onlly                      discomfort, but it's often blamed as the cause of a service                      failure ("Where's my water!!!").
What                      does this mean for you? In fact, you can use routines and                      processes to mark key moments in your customer relationship,                      establish professional credentials, create a feeling of inclusion,                      flatter customers, set expectations and get feedback. 
                     
                     Chase and Dasu conclude: "Behavioral science, applied                      with equal doses of empathy and imagination, can improve service                      delivery. More important, it can change the impressions that                      your customers remember, refer back to, and pass on to future                      customers."