E-retailers should be aware that there are two types of customers that visit their websites: risk-neutral or risk-averse.

1. Cater to Risk-Neutral and Risk-Averse Customers
E-retailers should be aware that there are two types of customers that visit their websites: risk-neutral
or risk-averse. A risk-neutral customer is more likely than a risk-averse customer to purchase online and
can make a purchase decision even with the possibility of loss or uncertain outcome. A risk-averse buyer
is sensitive to uncertainty and is likely to spend more time in evaluating a product online. Consequently,
they are willing to pay a premium to reduce the uncertainty associated to a product they like. They are
also more likely to be brand conscious. E-retailers should consider the risk profile of their customers
and provide value-added services to attract and retain them. They can create a customer-lock in by
making an impressive storefront design, providing virtual evaluation tools, and using support chat
software for online customer care.
It was a previously held notion that the ease of online price search will result in uniform pricing.
However, researchers have discovered that cautious consumers complicate the matter. Consumer risk
perception influences a consumer’s purchase decision – whether to modify, postpone, or avoid the
purchase all together. There are perceived risks customers have in the online environment including
concern for the product evaluation, delivery and system security. Live support chat is a relationship
building tool online businesses are utilizing in order to strategically handle both their risk-neutral and
risk-averse customers.
Risk-neutral customers are goal-oriented and want to reduce their search time by as much as possible.
They prefer going to websites that provide a variety of products. A chat agent can use support chat
software to find out what it is such visitors are looking for. Live support chat provides online customer
service representatives with an easy-to-access knowledgebase library they can use to immediately
resolve customer queries. They can also use the conversation as an opportunity to cross-sell or up-sell a
product by pushing influential pages. Customers will appreciate finding what they’re looking for with
ease and they will eventually familiarize themselves with product offerings an online store has. The
easier chat operators make it for online shoppers to find everything in one convenient location (one-
stop shop), the more likely customers are to be loyal to the brand of that website.
Risk-averse customers go to great lengths to reduce the insecurity they have towards purchasing online
as they too want the advantages a web store has to offer. As online shopping doesn’t offer “look-and-
feel”, risk-averse customers have difficulty warming up to it. E-commerce websites can provide specific

2. product information, reviews and demonstration videos, money-back guarantees to ease their concerns.
As online buyers tend to be time-starved, they may have concerns about product delivery. If a risk-
averse customer is ordering from another part of the country, they may wonder if the fragile product
will arrive in one piece and how soon will it reach their home. Online stores can rely upon dependable
operators to address such worries.
Although traditional retail outlets provide “look-and-feel” and more immediate delivery, with the help
of live support chat, e-commerce can confidently compete (to say nothing of the benefits of online
shopping that traditional retail outlets simply cannot compete with). Live support chat can help
businesses earn the trust of both risk-neutral and risk-averse customers by making their online shopping
experience memorable. By winning the trust of even its most cautious customers, online businesses are
sure to enjoy better growth and higher profit.