Digital Business Report: Woolworths' Website and Customer Service

This report provides a detailed analysis of Woolworths' digital business, focusing on two key issues: website usability and online customer service. The report identifies specific problems, such as a non-user-friendly website navigation and poor online customer service experiences, including issues with order confirmations, communication, and responsiveness to customer feedback. The report then proposes solutions, such as improving website design with auto-suggest features and a more intuitive search function, and implementing tools like Freshdesk and Podium to enhance customer service and manage reviews effectively. The report also emphasizes the importance of timely feedback and inventory management. The analysis uses digital business theory and system thinking to recommend improvements to Woolworths' digital strategy, aiming to enhance customer experience and overall business performance.

DIGITAL BUSINESS 0
Marketing
Digital business
System04116
4/6/2019

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Contents
Introduction......................................................................................................................................2
Background of Woolworths.............................................................................................................2
Discussions......................................................................................................................................2
Issue 1- website not so user-friendly............................................................................................2
Solution 1.....................................................................................................................................3
Implementation and control.........................................................................................................4
Issue 2- Poor online customer service..........................................................................................4
Solution 2.....................................................................................................................................6
Implementation and control.........................................................................................................6
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
As it is stated that every organizations has certain issues whether related to products, services or
shareholders. Each organization has positive and negative points. To adequately compete with a
company, the strategies must be formed. This report discusses about various internal and external
issues that are identified in Woolworths. The appropriate solutions for those issues are discussed
with the help of digital business theory. The major issues, which are identified in Woolworths,
are worried shareholders and poor online customer services. The specific and thorough
implementation plan is being identified for these solutions of certain issues and discussed further
in this report.
Background of Woolworths
Woolworths group limited is a larger Australian organization with large retail interest all through
New Zealand and Australia. It is the second biggest company in Australia by profits and second
biggest company in New Zealand. Woolworths functioning 995 retail stores throughout Australia
and depend on on the 1,15,000 team supporters in stores, supply centers and support offices to
make available their customers with superior service, value, range and suitability (Woolworths
group, 2018a).
Discussions
The Woolworths identified internal and external issues in its organization. To adequately
compete with Amazon and they do not take too much market share, they hired external
consultant to provide a strategy on how they can prepare and compete with amazon
appropriately. The following two issues are selected for this discussion such as:
Issue 1- website not so user-friendly
 When it is researched that customers explore the page of Woolworths and there was no
clear way for the customer where do they go and what these sites want them to view. If
they need them to shop for foodstuffs then show them the direction. There was no actual
focal point to take their attention. They even did not know whether to start browsing
through the foodstuffs or start running through the lined content. The primary thing they

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notice was the left side picture carousel which they knew would be a direction-finding
tool however there was no instructions to action. Their attention to the tiles was then
drawn, that take up the main real estate. These lines of tiles consists of painful throat
lozenge, AFL tickets, Woolworths flowers, milk etc. but the particular tile which really
fixed their eyes was the single titled “ New to online”. By clicking, see more they were
taken to a web page with more tiles. The amazon has better user-friendly website in
comparison to Woolworths as they provide all the needed direction on their website and
create ease for the customers to reach without any hurdles.
 Online shoppers are nowadays more demanding and expect an user-friendly features or
website. The virtuous of search box has been reinvented and various sites are nowadays
making it their key feature. The issue with Woolworths search box is that it is inserted
away above the left side of carousel and it does not make them jump out their place. It is
pretty small and looks like it is walloping in the private instead of coming out to perform
(Woolworths.com.au, 2019). Amazon creates special features according to the demands
of the customers which make them jump out of their place.
 Woolworths site decline to permit customers to transact as guest which is not seen in
Amazon as guest can also transact.
 At initial glance, the left side upright carousel looks good. The pictures are good however
once they begin using it they understand the list never lasts. It just keep going and they do
not recognize where they are. It is not clear where one class ends and where other starts
and it is just straight forward or modest (News.com.au, 2019).
 Woolworths attends a multiplicity of tiles on their home page that lead customers down a
different path. Amazon also serves many products but they specified those product in a
sequential which does not down the customers.
Solution 1
The solution for above issue is that Woolworths for being successful should spend more time to
understand the customer behavior apart from offering the cheaper product on websites. Online
shoppers are nowadays more challenging and expect user-friendly websites or features. They
should add the auto propose feature for show a list of results. Therefore, if a customer types
something the search box can disclose some suggestions for them. The Woolworths make its left
side carousel little bit large and coming out to play. The search box designed in such a way that

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grabs attention of customers and clearly gives direction so that user knows they can search
through a great volume of products and can also examine within definite category. It is simple
that give individuals what they really need and don’t make them fence through hoops. This will
adds further happiness to their experience. Woolworths should permit customers to transact as a
guest. It is simple idea as user buying as a guest and essential to enter their email address only.
Users will make payment and will thank for their buying. Customer will receive verification
email with receipt of their buying and they will enjoy the fast checkout process and will
expectantly one day returns to the website gain.
Implementation and control
The system thinking digital business theory is applied. As this is a method to incorporate that is
based on the certainty that the component parts of a system will act inversely when inaccessible
from the system’s environment or other parts of the system. According to this theory,
Woolworths appreciate the number of products offer on its respective site and it should not be
most visually inspiring list however, it is good and clean (Beynon, 2018). They develop vertical
tabs, which make them more readable. They start using quick view that permits the customers to
fast access the product explanation and if they wish, they can add the selected product to their
cart list instantly. The removing of pointless distraction while browsing a product catalogue.
They begins to assists a limited tiles on their home page that lead customers up on a single track
(Woolworths group, 2018b).
Issue 2- Poor online customer service
As according to the research, it is observed that Woolworths are not successful in satisfying their
customers with good online customer services in comparison to Amazon. Customers are
expecting more as they have perceptions in their mind that Woolworths is the large company of
Australia and their company also provides great services in return. However, the customers who
have buy or use their products and services of Woolworths are not satisfied. There are many such
issues that customers have faced such as:
 Due to a cancellation of their online order, they forfeited a voucher that was clearly not
redeemed. They have tried contacting Woolworths via telephone or emails and online
enquiry without success. This was unacceptable service by customer.

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 When customers place an order, they did not get confirmation email with details. They
also found that order was placed successfully because of payment source notification. In
some cases, it is cancelled with no explanation. They did not honor the customers savings
made (Faku, 2019).
 There is no communication standard for online customer services, which is a major issue,
and makes customers order last from Woolworths (Complaints board, 2019).
 A study shows that most of the retail industries still do not listen to the users or customers
on twitter. 64.6% customers were responded to questions within 5-10 days and only
11.2% respondent within one hour (IBISWorld, 2018).
 Woolworths not accepting feedbacks from customers which are necessary to take. As it is
counted in bad experience of customers with their business.
 They have some un reliable processes but they still not being customer- oriented.
Customer orders some material for another city. Two weeks before they get an email that
their material has been shipped and they would arrive on Saturday. The material never
arrived. They called customers service of Woolworths and they are not responsive at that
time when customer required to contact them urgently (Greenhalgh, 2011).
 They sometimes ignore reviews of customers on other sites which have negative impact
on the customers and they set negative perceptions about the products and services
provided by them though they have good products but if their online customer service
disappoints them then customer will not considered their products for longer time period
they walk to new respondents as choices are available to them due to competition
(Woolworths group, 2018a).
 As a customer when they explore the site for online shopping they expects from company
to find items as advertised. And when something is out of stock, it can be an incredibly
frustrating experience of customer which Woolworths does (Woolworths group, 2019).
 When the customers of Woolworths order online their groceries from website and mobile
apps they feel dissatisfied or do complaints because Woolworths team cannot ask
questions sufficiently which is results in poor online customer services and when
customer call them for a query they engaged with their staff members for an advice or
enquiries as they are not professional to answer the questions of the customers.

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Solution 2
Quality online customer services is extremely important. According to the study, 52% of the
customers who have had bad online customers’ service experience with Woolworths stopped
buying their products and services online. They prefer to go on shop and buy products on shop.
Many companies lost their business due to the same reason. The above issue of poor online
customer service in Woolworths can be solved by following ways such as:
 Use of freshdesk that is a helpdesk tool which lets customers online submits their
complaints and questions. The team must be developed to respond privately through
ticketing system which helps them to save face as they quickly responds to customers
concern.
 Taking timely feedbacks from the customers so that they can make their products and
service according to the needs and want of the customers. The customers also satisfied
while the company takes timely feedbacks from them and make them satisfied by
implementing those which are given in feedbacks of customers (Woolworths group,
2017).
 They should responds to the reviews of the customers an complaints which they are
leaving online on sites. Podium is a review management tool that lets them to collect and
respond to the reviews from over 20-30 sites and all in single dashboard.
 Use POS which will automatically update their inventory records so that when something
is out of stock it can be seen through this and customer will not have incredibly frustrated
experience. The use of lightspeed also help the organization to build purchase orders
based on the records in a flash and ensure they are quickly reordering items in which they
are low on and their customers will their bags full online (Iiao, 2017).
 They should start focusing on the customers and fast online services so that they can get
win-win situation instead of lose-lose (Mitchell, 2014).
Implementation and control
The system theory model of decision-making in consumers is used to emphasize their interaction
with the external people or organization and focus on evaluating the particular elements to make
viable decision and compare the performances. These issues are implemented and control by
Woolworths by following the process:

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1. Establish standards to identify the performance: to control the issues, Woolworths set the
goals for the departments in the organization which includes the performance standards to
compare with the activities of the Woolworths. The complete strategic plan is created.
2. Measure the actual performance: managers starts preparing the formal reports of
measurement of performance which managers review on daily basis. The Woolworths
collect the means for providing good services to customers and use of advance
technology to develop the user friendly website to satisfy the customer.
3. Compare the actual performance with the standards: managers read formal reports and
monitor the place of services provided in the Woolworths, they identify whether the
actual performance meets the standards set for online services and user-friendly websites
by computing the variance (Cabrera, et al, 2008).
4. Take corrective action: after comparing the performance with the standards, Woolworths
determines what changes are necessary for improving the issue and apply them to satisfy
the customers. They determine the causes or causes of deviation and take corrective
measures to implement and control the issues found in the Woolworths by using the
service matrix and customer contact matrix tool for designing this process and meet
customers requirement (Basile, 2017).

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Conclusion
From the above analysis, it is concluded that large organization must have good online customer
services and have well developed or well-designed websites of the company so that customers or
users can reach easily. These activities of Woolworths makes amazon better than them as
amazon provides good services and have well designed websites for their products and
customers grievances. The digital business theory is applied to understand the process of
implementation and control of those activities and integrate them for the growth and
development of the company. To have better customer services makes an organization
successful in a competitive market. Customers play a vital role in the market so it is the
mandatory to have good online and offline customer services and have user friendly websites so
that they can explore more about products and can place their complaints when they have any
issue regarding product or payments. These will help in retaining market share with them.

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References
Basile, G. (2017) Theories and challenges for systems thinking in practice. Organizational
transformation & social change. 14(1), pp. 1-3.
Beynon, P. (2018) Characterizing business model for digital business through patterns.
Electronic commerce. 22(1), pp. 98-124.
Cabrera, D., Colosi, L. and Lodell, C. (2008) Systems thinking. Evaluaton and program
planning. 31(3), pp. 299-310.
Complaints board. (2019) Woolworths Australia customer care service. [Online]. Available
from: https://www.complaintsboard.com/woolworths-australia-b126409 [Accessed: 06/04/2019]
Faku, D. (2019) Housekeeping forces woolies to sacrifice dividends for growth. [Online].
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to-sacrifice-dividends-for-growth-19432180 [Accessed: 06/04/2019]
Greenhalgh, J. (2011) Things you do not have to worry about with woolies. [Online]. Available
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woolies-76285 [Accessed: 06/04/2019]
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from: https://www.smh.com.au/business/woolworths-faces-showdown-over-drop-in-share-price-
20141126-11ue5r.html [Accessed: 06/04/2019]

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News.com.au. (2019) Woolworths website slammed by customers.[Online]. Available from:
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