DIRECT ONE-ON-ONE INTERACTION in real-time between customers and customer service representatives is the next frontier for electronic commerce on the Internet--the now-missing element that, once mainstream, will increase sales for retailers on the Web in a big way.

This, at least, is a theory being espoused by a growing number of technology companies that are releasing products intended to enable live communication between Web-based retailers and their customers.

These products, according to the companies developing and marketing them, stand to make Web shopping less static and self-service oriented, providing previously unavailable opportunities for aggressive salesmanship--and generally giving the heretofore silent world of electronic commerce a human voice.

One recently released solution is CosmoCall, from CosmoCom, based in Hauppauge, N.Y. Like many of competitors, CosmoCom is a start-up company operating with venture capital backing.

"One of the main problems with Web-based retailing is the fact that the consumer can’t communicate with a real person in real time," says Stephen R. Kowarsky, CosmoCom’s executive vice president of business development and marketing. "At best, there might be an 800 number posted on the Web site. Unless the customer has two phone lines, they have to shut down their Internet connection in order to call the 800 number--an inefficient, frustrating experience."

With CosmoCall, Kowarsky says, the experience of getting sales help becomes seamless. Right on the Web page, the consumer can click a button indicating he or she needs live help, and then communicate directly with a customer service representative--by voice, by voice mixed with video, or by text-based "chat," depending on how the agent and the customer are equipped--without disconnecting from the Web.

Depending on the bandwidth available to the consumer accessing the site, video and voice transmissions--running on the Internet’s packet-switching TCP/IP technology--can be jerky and slow, Kowarsky concedes. That should improve as faster modems and higher bandwidth technologies become ubiquitous.

Giving customers the assurance of knowing they can access a live person if they need one will make Web-based retailing more enticing to shoppers, Kowarsky argues. "For most consumers, there is still no substitute for live personal interaction. Many items, especially high ticket items, will only be bought if a live person builds rapport and sells them.

"We believe our technology will literally change the way business is conducted over the Internet," Kowarsky adds.

On its Web site (www.cosmocom.com), CosmoCom offers a free "light" version of its software for use by up to three customer service agents. Web-based retailers who wish to accommodate more than three agents pay approximately $6,000 per agent for the software. Indeed, the full version of CosmoCall is meant to be the Web equivalent of the automated call distributor systems used to receive and direct large volumes of incoming telephone calls.

Customers, too, must download software from CosmoCom in order to communicate with a retailer using CosmoCall. The download is free, and takes up a relatively undemanding 300 kilobytes of hard disk space. Also required for the software to work is Microsoft’s NetMeeting, which has been bundled with Microsoft’s Windows 95 and Internet Explorer for more than a year.

In servicing the customer, the agent has the advantage of being able to access information about what the customer has already seen on the Web site. "Yes, that red shirt you looked at comes in half sizes, and also comes in dark blue," is an example of how they might answer a question. The agent can also take control of the customer’s computer to try to sell additional items, in a process known as collaborative browsing (i.e., "Look at this scarf I’ve just brought up. It would go with that shirt beautifully.")

CosmoCom had no full-fledged retail customers using its software as this article went to press, although the company claims to have numerous pilots in various stages of development. Kowarsky concedes CosmoCall may be most practical for retailers who already have call center operations in place, "but that’s not our market exclusively. We believe we’ve created a strong justification for a retailer to develop a call center to support their Web site."--Bruce Fox