September 6th, 2007
Categories: Interactive Media
Imagine having a location for your business in every town in every state. We are talking more outlets then Starbucks or even McDonald’s. We’re talking a storefront outside of just about every house in the United States, check that – World. Guess what? You already do.
The internet has changed the business paradigm in a huge way. Just ask Amazon, iTunes, or the thousands of other companies that conduct business over the internet. The huge benefit of the internet is the avoidance of building a brick and mortar operation. It also is a level playing field in terms of brand. Remember when Netflix beat the behemoth Wal-Mart in the online DVD rental arena?
Don’t get too excited, though. The “Field of Dreams” principle does not work here. If you build it they will not necessarily come. You have to do two things to make your website truly successful. Tell people about it and integrate with your core business.
The first step is Marketing 101. Tell people about the website. Sponsor words on the search engines; create banner ads; produce TV spots. Select the best mediums to target your customers and then advertise your site.
The second step gets a little trickier. You cannot simply create a “brochureware” website and slap a contact form onto it. You need to integrate the site into your core business operations. Let’s look at a few good examples. FedEx allows you to track packages, print labels, and schedule pickups online. Of course with Netflix, the core business is totally an online process. Opening accounts, requesting movies, and customer service is all handled online. Even utility companies are getting into the act by allowing customers to start and change service, and pay bills online. I have saved the best for last: The State of Florida has made it so I can renew my driver’s license online. I have not been to my local DMV in over 10 years. It is beautiful.
Now there a lot of companies out there who refuse to integrate. I especially see this with manufacturers who have an independent distributor relationship. They are afraid of making the distributors/dealers angry. In my opinion these companies are waiting to fail. Maybe not in the next 5 or even 10 years, but the kids today will not put up with this archaic business model. Companies like Progressive, eHealthInsurance, Travelocity and e*Trade have thrived without using distributors(agents) and the trend is only heading more in that direction.
Here’s my own personal example. I was looking to install a wood floor a couple years ago. I stopped at the home improvement warehouses only to find limited selection and expensive prices. I went home and searched online. I found a company with a huge selection of flooring. They explained which type of floor to use in which type of house, and included how-to-install sections. I requested a sample of the wood online. It arrived at my house, I liked how it looked, and then I placed my order online. A truck arrived at my house in a few days and delivered the product. The kicker here is that I saved about $2 a square foot on the flooring.
I’m not saying that all brick and mortar operations are going to be extinct. There are some items that are best bought in person. This is especially true for inexpensive items. There is also a certain social component of shopping that will always exist. I could never use an online grocer. I enjoy the experience of shopping for food too much. For most business transactions, though, the internet is the future. You can either figure out how to be one of the major players, or sit back and wonder where all of your customers have gone.
Leave a Reply
You must be logged in to post a comment.