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Google's Gunning For Better Commerce Through Independent Customer Service Ratings

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A year after it revamped its shopping service, Google announced it will be tapping STELLAService Inc., an independent provider of customer service ratings and analytics for online retailers to highlight merchants that offer great shopping experiences.

STELLAService customer service performance data across the entire online shopping experience (including phone, email, chat, tweets, shipping and the all-too-important-to-ecommerce returns) will be used within Google offerings. All metrics are audited by global accounting and auditing firm KPMG, which has made STELLAService something of a Nielsen ratings for e-commerce sites.

For Google it’s simple. After introducing its initially controversial Product Listing Ads (which charged merchants for listing products) and watching its success with both retailers and consumers the search engine juggernaut was still looking to improve the experience of scouring the web for specific items (think: giving Amazon a run for its money in the commerce search department). Search results backed up by independent customer service analytics make for happier shoppers and more commerce through Google. Internet Retailer reported that a test of Trusted Stores last year involving 50 retailers led to a 3.1% rise in conversion rates and a 5.5% rise in average order size.

Google spokesperson Sandra Heikkinen Glading tells FORBES, "Our goal is to build a better shopping experience. Google Trusted Stores is an important part of achieving that goal, as the program helps buy online with confidence. We're looking forward to using information from StellaService to supplement our Trusted Stores data; it will assist us in helping shoppers identify online merchants that offer a great shopping experience."

“We have no doubt that customer service will emerge as the differentiator for many online retailers,” STELLAService Chief Executive Jordy Leiser said in a statement. To get the data, the company deploys a cadre of mystery shoppers who buy up merchandise at a variety of retail outlets, regardless of whether the retailer is paying to get their own data. This goes above and beyond what retailers traditionally rely on: surveys and online product reviews.

So far, such customer service data is proving to be a hot commodity STELLAService recently snagged $15 million in a Series B round of funding and brands such as Zappos, 1800Flowers, and flash sale site One Kings Lane joined its growing roster of clients.

FORBES chatted briefly with Leiser to get his take on Google’s gambit and the implications of data on customer service.

Now that Google has signed on, does this benefit your current retail customers by displaying search results directly linked to their e-commerce sites more prominently? 

This absolutely benefits those companies that provide a high level of customer service. When the integration is live, Google users trying to choose a retailer now can base their decision on more than price. STELLAService's ratings, powered by a robust evaluation of retailers, will now be visible for those Google users. We expect retailers will love seeing their great service highlighted.

Using mystery shoppers seems quaint when compared to how StellaService is using analytics and a high tech dashboard. Do you foresee innovation coming in how you gather data?

It's very important that we mirror the shopping experience of the everyday consumer. We have to generate an authentic interaction with each CSR and live the experience of receiving the product to accurately measure and evaluate each merchant's performance. We are constantly looking at ways to apply innovation, but we're sometimes limited to the pace of innovation for the customer relationship. For instance, we know of some retailers considering mobile text messaging as a channel for customer service. If that feature gains popularity among consumers and retailers, we'll begin evaluating that channel.

This is a complicated mystery shopping effort. We don't just step in the store and see if all the light bulbs are on, we measure every detail that matters during each interaction with the company. For a full calendar year, our daily evaluations produce about 80,000 data points for each of the largest online retailers.

What do you see is the biggest customer service challenge to online retailers?

The biggest challenge is to continue striving for better service. Just when you think two hours is a fast email reply time, your competitor will do it faster. Consumers can buy the same product for the same price at numerous retailers, which means they need another compelling reason to buy from a particular store. And, as expectations for fast, friendly and helpful service continue to rise among shoppers, retailers must be diligent about constantly improving the service experience.