When it comes to taking your business online, it’s important to separate fact from hype. Here’s how to know if, when, and how your business should go "e." Few successful e-Businesses launch or survive without major commitments of time, money, and resources. Daily business headlines about defunct dot-coms and e-Ventures are proof positive that e-Business is more than just slapping together a Web site. While there are exceptions to virtually every business rule or guideline, the most successful e-Businesses share a number of characteristics:
- Simple sales cycle
Most successful sites offer products and services that have a relatively simple sales process: Customer wants what you sell; customer finds what you sell at an acceptable price; customer buys what you sell. If your product or service requires a long or complex sales cycle, consider how this will be accomplished through the somewhat anonymous nature of e-Selling.
- Ease of order/delivery
You need to have a product or service that can be shipped or otherwise delivered to the customer within a reasonable amount of time at a reasonable price. For books or electronics, an acceptable lead time may be a few days, while delivery of information may need to happen within minutes or seconds. Examine how quickly your customers expect to get what you offer; then calculate whether you can deliver within that timeframe.
- Recognizable brand
Whether you’re a well-known offline business with an e-Presence or a dot-com that has sunk some money and effort into effective branding, a recognizable name -- either your own or from the products or services you offer -- is a huge asset. A known brand helps an e-Business overcome concerns about return policies, customer service, and quality of merchandise.
- Competitive pricing
In an environment where a customer can comparison-shop with a few clicks of a mouse, an attractive price will help you gain market share.
- Aggressive marketing
An e-Commerce study conducted by Ernst & Young found that customers value a strong online presence and aggressive advertising when it comes to doing business online. The most effective efforts combine online tactics -- cross-promotion, opt-in opportunities, strategic search engine placement -- with more traditional offline marketing like advertising, direct mail, and public relations.
- Solid distribution facilities
Nothing can kill an online business faster than failure to deliver products and services as promised. Test your site and examine the transaction levels of sites similar to yours -- can you service the amount of business that you’re hoping to attract?
Taking your business online
If your business has most or all of the characteristics of successful online businesses, the world of online selling may be right for you. However, it’s not enough to put up a site and wait for the traffic to roll in. To help serve their customers and protect their investments, successful e-businesses follow a series of steps.
- Do your homework
Find out what’s being done well within the e-Field you wish to enter. Search your competitors as well as sites in other industries and incorporate their best practices into your site. Being first to market may be a strength, but you can also learn much from the mistakes of those who launched before you.
- Value function first, then form
While it’s important to make your site look good, the Ernst & Young study found that customers value ease of use and intuitive navigation most. Choose a clean, professional format over a media-rich approach that makes your site slow to download.
- Measure investment vs. return
Web designers come in all shapes, sizes, and price ranges. It’s easy to spend $50,000 or more on a site. However, if your sales projections for the site mean that you won’t return that investment for several years, you might want to scale down your site and spend the money on promotion. You can usually add more sophisticated features as your site begins to generate revenue.
- Promote, promote, promote
Out of site means out of mind for most e-Businesses. Be sure that you have allotted adequate funds to get your site’s name out to customers and prospects.
The e-Commerce forecast
Launching an e-Business can allow you to reach a global marketplace instantly. However, many businesses underestimate the expense and effort required to turn those worldwide prospects into a profitable group of customers.
Businesses that take the time to do their homework and develop a realistic online presence stand the best chance for success over the long run. Take advantage of opportunities to improve and promote your site, and you’ll stand a better chance of riding the e-Wave to a better bottom line.
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