{"id":42773,"date":"2014-10-27T09:00:11","date_gmt":"2014-10-27T08:00:11","guid":{"rendered":"http:\/\/visionarymarketing.com\/en\/blog\/?p=4623"},"modified":"2024-03-26T17:27:28","modified_gmt":"2024-03-26T16:27:28","slug":"online-dispute-resolution","status":"publish","type":"post","link":"https:\/\/visionarymarketing.com\/en\/2014\/10\/27\/online-dispute-resolution\/","title":{"rendered":"ECommerce: a Dire Need of Online Dispute Resolution"},"content":{"rendered":"

The world of eCommerce is in dire need of Online Dispute Resolution (ODR).\u00a0These are my minutes from the discussions amongst the members of the private <\/a>Youstice<\/a>* meeting which took place in Prague<\/a> on October 18-19, 2014 at the Aria hotel, right in the centre of the Czech capital, and barely a stone\u2019s throw from the house where Franz Kafka used to live. Yet, our discussions were by no way Kafkian<\/a>. On the opposite, they made it possible for us to link all the issues related to today\u2019s e-commerce customer relationship management. The notions of trust and respect were at the centre of all debates, therefore highlighting the need for trusted third parties, mostly in Europe, even though the approach, as often, is different from country to country.
\n[*Disclosure: Youstice<\/a> is my client]<\/em><\/p>\n

Internet pioneers meeting in Prague highlights a strong need for online dispute resolution in E-commerce<\/h2>\n
\"\"
Prague: at the far end of Na Po\u0159\u00ed\u010d\u00ed Avenue, one can catch a glimpse of the Palladium shopping centre. Now, would you buy from them if you were based, say, in Belgium? Would their reputation be strong enough to reach your ears? And how could one tackle that issue?<\/figcaption><\/figure>\n

<\/p>\n

E-commerce: it\u2019s a matter of trust<\/h3>\n

Doc Searls\u2019 initial title for this discussion was \u201cterms and policies individuals assert\u201d. The discussion started with a consensus around Doc\u2019s introduction to the meeting: \u201cfreedom of contract was established a long time ago in order to do business but in 1943, in order to gain scale, the law was changed, which means that one party is issuing the contract and the other is forced to accept or reject it (as when we buy stuff from Websites and are forced to accept terms of conditions which keep changing)\u201d Doc said. Doc Searls, for those who can\u2019t remember, is a co-author of the Cluetrain manifesto, which is still available at http:\/\/cluetrain.com<\/a>; a fundamental piece of Internet marketing literature which was already pinpointing the need to consider Web viewers not as \u201ceyeballs\u201d, but human beings(1).<\/p>\n

As is always the case with the Internet, all users are decision makers, whether some merchants like it or not; and from there came the idea of \u2018do not track(2)<\/a>\u2019. \u201cWe are right at the beginning of that\u201d Doc went on. A company called the Respect Network(3) have issued a document entitled the \u201crespect trust framework(4)\u201d which spells out principles like \u201cboth parties will respect the boundaries of the other party\u201d. These issues of trust and respect are at the heart of the need for Online Dispute Revolution (ODR) as we will find out later on.<\/p>\n

\n
\n
\n

\"Online
Doc Searls<\/a> in Prague: despite what the message in Czech on the screen says, a clear signal was sent by the co-author of the Cluetrain manifesto<\/a> during our meeting: respect your clients!<\/figcaption><\/figure><\/dd>\n<\/dl>\n<\/div>\n

Two parties of equal power<\/h3>\n

Essentially, there is a need to \u201cestablish contracts between two parties of equal power\u201d Doc went on. It is very early days but one thing that is happening is that \u201cthe system we have is broken and it needs to be fixed\u201d. What was working well for a few large companies in the industrial age isn\u2019t working that well in the Internet age at all. \u201cA lot of people are coming to us from Salesforce.com and other large Internet companies\u201d Doc Searls added, and they understand that they need to deal with customers in a much better way. They used to think we were \u201ccommunists\u201d but this is over, they are jumping on the bandwagon now.
\nA new effort is also going on in the UK about what Doc called \u201cconsent receipt\u201d for which any time a customer gives consent, they get a receipt. \u201cThis is a step forward in the right direction\u201d he added. They are working on the \u201clog in with respect\u201d button with regard to Facebook and other social connect mechanisms. It\u2019s hard to say what Facebook will be up to with your data. \u201cIf one comes up with this alternative button, there\u2019s code which one will be able to install on site-side. This ensures that one enforces respect and issues statements you won\u2019t tamper with users\u2019 data\u201d Doc explained. January is the potential release date, currently going through Kickstarter.<\/p>\n

B.A. may not need an ODR<\/a> (Online Dispute Resolution) system, but smaller players do<\/h3>\n

Esther Dyson<\/a>, once head of ICANN<\/a> in the early days of the Internet, joined the conversation mentioning that if there is \u201can issue with privacy, there is also one with regard to trust\u201d. \u201cBritish Airways doesn\u2019t really need an ODR system like Youstice because they already have a reputation,\u201d Dyson said; even though there has been some traction with larger merchants and e-merchants which would tend to prove that a trusted third party for dispute resolutions is not only a technical solution; it is also instrumental in reassuring clients who expect neutrality and fairness. \u201cThe target for ODR is the sites that customers don\u2019t trust\u201d Dyson went on. Respect isn\u2019t enough. Indeed, consumers want to be able to trust the shops they buy from. This is only natural in an increasingly globalised world where extra European buyers can make online purchases from 3-4 different merchants, not always located in the same country. It is hard to trust someone you cannot see in a country you know nothing about.<\/p>\n

\"ONline
Esther Dyson. Meeting Esther was like meeting a legend. The first time I heard about the Internet was in a Channel 4 program in 1994 in which she testified! (the program was entitled “Visions of Heaven and Hell” things haven’t changed that much after all!<\/figcaption><\/figure>\n

The aim of Online Dispute Resolution: reduce the number of disreputable merchants<\/h3>\n

\u201cThe ODR promise is that we\u2019ll give customers the potential to negotiate one to one and resolve issues on an individual basis\u201d Esther Dyson pointed out. The idea is to reduce the number of disreputable merchants. One of the issues with privacy though is \u201cthat you never know when it\u2019s been reached; you only know when it\u2019s too late\u201d the former head of ICANN and member of the Youstice board of advisors added. A tower of Babel and the need for a common language Trust and respect aren\u2019t sufficient, and there are more things in that balance of modern e-commerce which is more and more a cross-border issue: \u201cthere is a need for an enforcement mechanism and current legal systems can\u2019t help because they are different in all parts of the world\u201d explained Zbynek Loebl, co-founder of Youstice and our host for that weekend in Prague. And it\u2019s very hard to predict that such enforcement mechanisms could be in place any time soon according to the Czech entrepreneur.
\nJoyce Searls, co-president, with her husband, of Searls Group(5), commented on Zbynek Loebl\u2019s statement: \u201cthere are a lot of little things which can create a river of change when all those efforts will be aggregated and it won\u2019t solve the problem just on the legal side but on the company side too.
\nWe have been tracking this area for so long and it seems that something is happening here at last and all these things are coming together. Things have to be solved,\u201d She said. It is no longer possible indeed, to ignore the need for respect and trust on the part of clients, as well as the requirement to solve disputes when they arise. The future of e-commerce hinges on that, the need to fix its principles, both ethically and technically. Online Dispute Resolution is part of that.<\/p>\n

Resolving claims is how you build a reputation
\nEsther Dyson<\/p><\/blockquote>\n

Pablo Cortes, our Spanish representative \u2013 also a Professor from the Leicester University in the United Kingdom, emphasised the requirement for the market to evolve beyond current practices: \u201ctrustees have been in the market for a long time and they have had their code of conduct,\u201d he said, \u201cbut if a customer complains about a breach of privacy they never do anything against large businesses because there is a conflict of interest.
\nYet, settling disputes isn\u2019t just a negative thing, as pointed out rightfully by Esther Dyson: \u201cone has to understand\u201d, she commented, \u201cthat resolving claims is how you build a reputation\u201d. Zbynek Loebl can however see \u201cthat this movement is happening, slowly but surely. The obvious example is BBB(6) in the US and there are similar trust marks in Europe,\u201d he said. \u201cWe at Youstice have well established that retailers could see that improved public policies would be seen as positive by customers and retailers alike and it could be a game-changer. And it\u2019s a matter of things catching up with all\u201d.<\/p>\n

Katsch(7), who is credited for inventing the field of ODR(8) (Online Dispute Resolution) added that \u201cconflicts of interest become more prominent because of so many entities being in relationship with so many others. You have got to build trust in spite of these conflicts of interest. The old way of building trust was to avoid conflicts of interest,\u201d ODR offers a way to table these issues and solve them. \u201cIs it safe to buy from this retailer?\u201d Asked Zbynek Loebl.
\nA couple of months ago he just got an email from a VP from a retailer: \u201cwe have a request that someone from a country wants to buy from a small e-shop from France, and they want to know whether this e-merchant is safe to buy from; can you help us?\u201d \u201cThis,\u201d Zbynek Loebl said, \u201cis a very simple issue, a very simple question and yet, answering that question is almost impossible and the reason for this is globalisation. There are still no simple answers to such simple questions but there are potential solutions.\u201d<\/p>\n

\"Online
Internet pioneers: some of the attendees of the Prague meeting on Saturday 18 October 2014<\/figcaption><\/figure>\n

A simple complex question<\/h3>\n

As a matter of fact, this isn\u2019t a simple question, as pointed out by Esther Dyson in response to Zbynek Loebl\u2019s anecdote. Yet, with such complex issues, third party services can help: \u201cIf customers were asked to have their problems solved by internal departments or third party, I\u2019m certain they would choose third party\u201d Leah Wing, lecturer at the University of Massachusetts\/Amherst(9), commented.
\n\u201cThere is a need for that, but as seen in Germany with \u2018Trusted shops10\u2019, traction is only being gained and we are not there yet\u201d. Ivan Debnar from Slovakia added: \u201cif I were a merchant, I would like to show I care about my client and there is a need for first-line support from within the company. This is also instrumental in building trust with one\u2019s customers\u201d. \u201cIt is indeed a two-step process,\u201d Ivan Stefanko joined in, \u201cfirst and foremost, there is customer care\u201d, and next comes to Online Dispute Resolution.<\/p>\n

The beginning of a new era: VRM supersedes CRM<\/h3>\n

There is still a lot of evangelisation to do in order that the term ODR is known and the concept develops. Even some of our meeting attendees declared they had never heard the term before. By and large, however, the future of e-commerce is no longer a matter of CRM but a matter of trust and respect, and the ability to resolve issues that are sometimes, unfortunately, ignored or minimised by merchants according to Pr. Ethan Katsh.
\nThe empowerment of users and the maturation of e-commerce and especially cross-border eCommerce is calling for new standards where consumers will be able to manage their relationship with their vendors, in much the same way that vendors started managing their relationship with their consumers through CRM, twenty years or so ago.
\nThis is the beginning of a new era.<\/p>\n

______footnotes<\/strong>
\n(1) Suffices it to say that I have been a fan of the Cluetrain manifesto from day one, and still am. I hold that text for one of the most significant marketing texts ever written. A lot of what Doc referred to during that meeting in terms of respect and trust has to be seen in the light of the manifesto.
\n(2) http:\/\/blogs.law.harvard.edu\/doc\/tag\/do-not-track-no-track\/
\n(3) https:\/\/www.respectnetwork.com\/
\n(4) http:\/\/openidentityexchange.org\/wp-content\/uploads\/2014\/06\/respect-trust-framework-v2.pdf
\n(5) http:\/\/searls.com\/tsg\/
\n(6) http:\/\/www.bbb.org\/ Better Business Bureau
\n(7) http:\/\/odr.info\/katsh
\n(8) https:\/\/en.wikipedia.org\/wiki\/Online_dispute_resolution#cite_ref-15
\n(9) https:\/\/polsci.umass.edu\/profiles\/wing_leah
\n(10) http:\/\/www.trustedshops.com\/<\/p>\n","protected":false},"excerpt":{"rendered":"

The world of eCommerce is in dire need of Online Dispute Resolution (ODR).\u00a0These are my minutes from the discussions amongst the members of the private Youstice* meeting which took place in Prague on October 18-19, 2014 at the Aria hotel, right in the centre of the Czech capital, and barely a stone\u2019s throw from the …<\/p>\n","protected":false},"author":2,"featured_media":42324,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4069],"tags":[4263,4295],"class_list":["post-42773","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-digital-marketing","tag-conference","tag-crm"],"yoast_head":"\nOnline Dispute Resolution Badly needed by eCommerce players<\/title>\n<meta name=\"description\" content=\"ODR means online dispute resolution: it's a new field of CRM (and even VRM) that was created by Ethan Katsch, a member of a Prague meeting\" \/>\n<meta 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He is a speaker and author of many books. In 2014 he went from intrapreneur to entrepreneur, when he created his digital marketing agency. Yann Gourvennec a cr\u00e9\u00e9 visionarymarketing.com en 1996. Il est conf\u00e9rencier et auteur de plusieurs livres. 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