White Knight

The rapid growth and innovation of the internet is allowing many small to medium size businesses to take advantage of proven techniques used by large multi-national companies. These companies invest millions of dollars every year to create a holistic approach to sales and understand a website is another opportunity to provide Fantastic Customer Service.

Aside from the obvious cost benefits in a setting up your eCommerce Solution on the web, there are other benefits such as the automation of the sales process that make it more convenient for the average consumer to make their purchase online.

On the other end of the scale, consumers are using the internet to assist in making a more informed decision prior to entering the “Show Room” to finalize their purchase.

Chris Freithcen from  ConsumerSearch.com was recently quoted saying, ‘It is fairly common for a person looking at purchasing a product to want to fully research it prior to making a purchase.”

Online Shopping Trends

Since its inception in 1990’s online sales have increased every year by an unprecedented amount and continue to grow as consumers become more comfortable using the Internet as a tool for gathering information and making informed decisions.

A survey by Nielson Online (a service of the Nielson Company) shows people shop online during the holidays not to save money, but to save time. The online survey of 1000 consumers found 81% shop online as they can shop when they choose at any time of the day. 77% mentioned they wanted to save time and 61% use the internet to compare prices and 56% said they like to use it because they are able to find what they want easily.

Another report compiled by comScore titled “The Ascent of the Precision Shopping Machine”, explores eCommerce and discusses future shopping trends. The report states, “Online shopping spikes every year, then pulls the rest of the year up with it as people become more comfortable with their online shopping experience.” The report continues, “As experience and comfort grows, spending increases.”

These trends indicate an upward spiral of online purchases that increase with every holiday season as the web industry continues to develop with intuitive design, and consumers continue to feel more comfortable with their online experience.

Why are people becoming more comfortable using the Internet to make their purchasing decisions?

Over time the internet has evolved and its number of users has increased. In 1999 there were approximately 248 million people worldwide using the internet. Today (as of march 2009) there are approximately 1.59 Billion people worldwide, which represent over 600% increase in users in just ten years (source
Internet Growth Stats).

Although many would argue this increase is simply as a result of the convenience of the internet, one of the real reasons for the dramatic increase is the creation of newer technologies, continual development to create a more intuitive experience and the implementation of other proven techniques.

This has created a foundation for web designers and website owners to systematize components of their business and streamline the experience for the customer.

Websites streamline the process

Websites are an excellent method of streamlining the sales process for many businesses. A business can now share relevant and correct information with its customers, is available 24/7 for viewing, and if used correctly, will complete the transaction or lead the customer along a path to make a final purchase.

Unlike many other older conventional sales techniques the increased usage of the Internet indicates this component of the sales process will continue grow and more people will use the internet to complete or assist in their future purchases.

The key to the successful use of a website is in the implementation of proven processes that lead the potential client along a path and essentially holds their hand to guide them through each step. This will gain trust and show your customers your website is a Fantastic Customer Service tool.

The lure of businesses to create an eCommerce presence is increasing due to the lower investment necessary to set-up a complete online business.

As more and more businesses make the transition from Bricks and Mortar to eCommerce it is critical that they gain an insight into the proven elements of a successful eCommerce site. This initial understanding will prevent future frustration and disillusionment toward their eCommerce experience and future online success.

Why many eCommerce Sites fail

Although Australia eCommerce is still in its very early stages, there are many Australian based websites that perform very well, all implementing similar principles to convert first time visitors to create eventual return customers.

Unfortunately many sites fail when it comes to basic principles and as a result are unable to convince a potential customer to purchase on their online store.

Trust in the Site you are buying from

One of the difficult hurdles to overcome is in gaining the trust of your potential customer. With constant reports on Internet Scams and dodgy online schemes, how is a customer supposed to trust you are a legitimate business offering a legitimate service or product?

An interesting excerpt from the VeriSign website mentions, “Fraud and identity theft have created a chilling effect on e-commerce. Of online consumers, 65% shop only at sites they know and trust, and 65% of online shoppers have abandoned a shopping cart because they did not “trust” the transaction.”

Unlike a conventional bricks and mortar store, your customer cannot actually see your store and understand whether it is reliable or trustworthy.

Fortunately there are several recommended ‘Trust Factors’ that can assist your customer in feeling more at ease when visiting your online store and convince them you are a legitimate business.

Make it easy to contact you

Ensure your contact details are easy to locate on your site. A majority of people won’t actually call, but it’s a good trust builder for your customer to see they can actually call if they need to.

There are customers that still feel uncomfortable completing a credit card transaction over the internet and simply want to talk with a real person. This succeeds in capturing customers that you would normally lose as you are offering an additional point of contact then sites that only offer an email address as a contact point.

They may also have questions that couldn’t be answered on your site. Remember a customer you convert once can become a customer for life buying from you time after time.

Is a Customers Transaction Secure?

Any potential customer offering their financial details over the internet needs to feel safe and secure that an unscrupulous dealer will not take their information and lead them to financial ruin. Although many credit card companies have systems in place to cover unauthorised transactions, your customer needs to
feel ‘peace of mind’ when purchasing from you.

What type of security does your site offer and how do you inform your customers of your security features?

In order for a new customer to feel safe with their transaction they should clearly and easily see the safety features before purchasing from you.

A Professionally designed and well laid out eCommerce site

Imagine 2 physical businesses you’ve never heard of a selling exactly the same product.

One business has its name written on the front window in marker pen, is  fairly dark inside and their products sit on a mismatch of tables covered in different coloured sheets. The other business has a professional shop front displaying their business name, mood music, is well lit and uses professionally designed, matching cases. If their products were the exactly the same price, which shop would you be inclined to choose?

This is the same when you compare an eCommerce site that is self made and one that is designed by a professional with experience in website development. An eCommerce solution should be simple to navigate, well laid out and your customer should be able to find what they are searching for quickly and intuitively.

Consistent and up-to-date Quality Content

It is fairly common for web browsers to loose confidence or trust when a website is out of date or presents inaccurate information.

An report released by Forrester Research discussing the issues with eCommerce websites stated, “Major problems included missing content, meager function, and frequent errors — weakness that thwart users as they pursue typical goals.”

Your customers want to make a well informed decision when purchasing from you and it’s your responsibility as the eCommerce site owner to provide them with accurate, complete and up to date information. If you believe you are not able to write the content for the areas of your site, enlist the services of a copy writer.

The Proof is in the Pudding

These are a tiny excerpt of many other important ‘Trust Factors’, yet are the most important when determining your eCommerce success.

If you are ever in doubt, take a look at the top 15 Australian eCommerce websites published by ZD Net. Every one takes advantage of these basic principles and uses it to their advantage.

Remember, an eCommerce website is on show 24/7 and is the online representation of your business. When your customers visit your site they will decide in less than 60 seconds whether they should make a purchase from you. If they don’t feel enough ‘Trust’ in the product or service you offer they will move onto your competitor and you will have lost the life time value of that customer.

With the economy in an apparent downturn, many business owners are turning to other alternative methods to continue to grow their business. There are a number of proven methods available all with their respective pros and cons, but one of the great trends forming in today’s business world is eCommerce.

According to Forrester Research, 2007 online sales experienced a growth of 21% over 2006 and future trends show a continued growth of around 14% p/a over the next 5 years, despite the current wavering economy.

Dilemma of eCommerce sites that perform

How do you develop a good eCommerce solution that delivers profits to the bottom line? One of the great challenges for Australian Businesses deciding to tackle the on-line world, is in the style of site they believe they need to design to generate any real profits.

Director of retail Phil Bonnano from The Leading Edge said, “Retailer sites in Australia are little more than catalogue pages on the web. Few sell anything online and most offer no integrated services between stores and sites. Most websites lack innovation, fail to engage the consumer and offer nothing new or exciting,”

This identifies an untapped market in the Australia eCommerce marketplace, where anyone with vision can establish themselves as the market leader in their niche.

Successful eCommerce websites are built by using Proven Techniques

The key to a successful eCommerce site is in establishing a solid foundation and planning the future success. It’s critical to understand what and how a customer will buy from you and the message you want to portray about your business.

Think of creating a new website like the opening a new outlet or store.

Would you expect to have a high performing store if your customers had to walk through an unidentifiable maze to find your cash register? Or even worse, would you design a physical store where you customer is ready to buy only to
discover they can’t complete their transaction as they are shopping in a display only store?

It is critical for your customers to find their shopping experience simple and enjoyable.

This is achieved through the integration of eCommerce methods and proven web design techniques.

eCommerce offers a Measurable Return on Investment

One of the greatest challenges in marketing is through understanding what does and doesn’t work. Different marketing strategies can take months to come to fruition and you may not even understand if they are actually achieving a return on investment.

eCommerce is proving to break free from the mould offering a medium that allows successful measure of campaigns through applications such as Google Analytics.

As David Trewern from marketing agency DTDigital was quoted as saying  “You can prove the return on investment – and it is very hard to get that level of data and results from other mediums. This takes the guesswork out of it in a
bad economic environment, when people want to be sure of their investment.”

eCommerce offers the opportunity for all businesses to compete on a level playing field

In the physical world there is a massive difference between the big and little guys. Myers, David Jones and Woolworths hold the obvious upper hand over smaller independent retailers. This translates across many different industries and identifies a necessity to consider other mediums in order to grow business.

The on-line world offers a solution proving that businesses with a solid eCommerce plan are able to outperform their competition.

Sites like vroomvroomvroom are an example of how smaller businesses can compete on the same playing field as Hertz, Avis and Budget through smart eCommerce sites that make it easier for visitors to navigate and buy through.

They currently have only 10 employees, and through well thought eCommerce strategies and implementation of technology have established themselves as market leaders in the Australian car hire industry. By redeveloping their eCommerce strategy they managed to grow their revenue by 121% in 12 months.

Do I need to take out a second mortgage to get a piece of the eCommerce action?

With expected growth of 14% p/a it is important to ensure you have a well thought eCommerce solution to establish yourself as a leader in your niche. This will obviously involve an investment, but will not cost you anywherenear the price of setting up a physical shop and hiring a team of people to run it.

It is important to think of an eCommerce site as an online presence servicing your customers 24/7, leveraging your time and reducing your expenses.

In today’s economic climate it is critical to ensure you are adapting to the market place. What better way to do that then to become a market leader in your niche through the development of an eCommerce strategy that will outperform your competition.

Like most small businesses out there, cost control is of utmost importance.  Your brand however, is not an area you should economise on.  Business should view their website as an extension of their brand.  Therefore it makes sense to ensure that you invest in the very best website you can.  When prospective customers come looking for the services/products that you provide, they will make a decision on whether to buy from you based on your website.  Its like your shop/showroom/office, you work hard to ensure that the environment is professional, clean and welcoming, as it’s an extension of your reputation.  The same principles apply to your website.

The Sensis’ eBusiness Report for 2008 tells us that 99% of businesses with more than 100 employees in Australia use the internet to look for information on suppliers compared to 81% of those with 1-2 employees.  What this tells us is that if your a business that relies on b2b, at the very least, 81% of your prospective customers are on the web!  If your customer range is medium to large in business size, they are all on the web, looking for you right now.

So you decide to get a website built, do you go for the template website for $25 just to get online, or do you invest a little more for professional web design?

What does a $25 website project tell your customers about your company and brand?  Would you do business with a company if you found their $25 website on Google or Yahoo?

I was searching around the other day looking for a service provider for a specific task.  I must have looked at 20 or 30 different websites of what appeared to be $25 sites through to custom web design sites before I made my mind up as to which provider I would choose.  I chose the provider with one of the better designed sites (reflecting a clean and professional company image), but also one that had professionally written content.  This gave me confidence that the provider I chose, was the best in their market.

If your in a competitive market, you really cannot compromise on your website.  As Google is now the dominant referrer of business (Smart Company, 2009), even more than the Yellow Pages, you need to show your prospective customers your the best in your field.

We talk to a variety of small business, from a multitude of verticals, every day regarding their website needs.  According to WebWorld, Australian business has been slower than places like the USA and the UK in adopting websites for their businesses.  Companies like Myer and David Jones still are yet to embrace eCommerce, where in the USA, there are a number of department stores that have been using eCommerce for years (J C Penny, 2008).

Key Highlights from the below stats:

-253 million internet users in China

-16 million internet users in Australia - this is 79% of the country!!!  This is why business must embrace setting up their own websites.  This is the highest per capita usage in the world behind Canada.  With a growth over the last 8 years of 147%.  Why Small Business fail to see the benefits in having websites with these cold hard stats available to them is any wonder.  For a starting investment of $300, small business can get a professional website with White Knight.  See Web Design Australia for more information.

According to Small Business Australia, only 40% of Australian Small Businesses have a website!  To think about the advantages that a small business could derive over their competitors by having a website.  They expose their business to 79% of the population.

The primary reason that small business MUST start to look at some form of professional web design/presence lies in the following statistics (Source: Internetworldstats.com)