How eCommerce Helps Small Business
Posted in eCommerce on 02/08/2009 11:22 am by SethI want to address a couple of points with this post. Firstly the common misconception that conducting business via the internet diminishes good customer service. Secondly the causes of small business failure and how eCommerce can address these.
In our discussions with small business, we talk to customers about the benefits of having a website. There is some concern within businesses that are still yet to get a website, as to the impacts on their customer service levels, particularly around personal and direct engagement. These businesses are worried that if they direct the customers, who like ringing them and having a chat, to a website, the loss of personal contact diminishes the customer service.
As Susan Ward from About.com indicates “Good customer service is all about bringing customers back. And about sending them away happy – happy enough to pass positive feedback about your business along to others, who may then try the product or service you offer for themselves and in their turn become repeat customers.”
With this in mind, providing good customer service is not a one dimensional process. With the improvement in internet speeds, more and more consumers are using the internet to research products and services, along with understanding which company to choose. Business, in order to provide good customer service, should provide a number of avenues to keep their customers happy.
CustomerServicePoint.com indicates that with increases in the intensity of competition in commoditized market sectors, customers are turning their backs to businesses that do not deliver value. Therefore with this in mind, small businesses need to think about not only their customers that they deal with on the phone, but potential customers that prefer to deal via the internet. They then should develop customer service strategies to cater for the differences in their customer demographics.
So providing your customers a website to; understand more about your company, your value proposition, your ethics and an avenue for them to contact you, other than the phone, is good customer service. Also being available on the phone to talk to your customers that prefer this channel, and in person, if your business requires it. Its not just one approach, but several.
So, how is this related to Australia eCommerce and issues that small business encounter in their daily trade?
Well lets first look at issues that small business in Australia, and most other developed nations, face.
According to NT.gov.au, the reasons for small business failure are:
1. Lack of capital - cash flow
2. Poor planning
3. Poor customer service
4. Economic conditions
Now before I get into the detail of these points, let me ask you a question. How would your business compete if; you could operate on upfront payments from customers, therefore improving your cash flow, provide your customers an avenue to buy from you 24 hours a day 7 days a week, providing avenues for all your customers to communicate with you and provide feedback AND reduce the operating costs of your business at the same time?
I assume that some of you know where I am going with this. With exception to economic factors, the reasons for small business failure are entirely within the business owners control.
Most small businesses operate in crowded and competitive markets. By offering a level of service, quality and affordable pricing, you can easily stand out from your competition. The trick is to do this on a shoe string budget, as most small business are in a competitive market. eCommerce is the logical solution.
By setting up a website and implementing eCommerce Design, where your customers can come 24 hours a day, 7 days a week, without disrupting the small business owners work life balance, without increasing operational costs to service at this level, small business can very easily become significantly more competitive. eCommerce also addresses the issue of cash flow. Your customers usually will pay prior to the despatch of goods, unless of course you setup specific terms with larger trading partners. However, if your business deals direct to the consumer, then you will reap cash flow rewards.
eCommerce will also afford you the opportunity to provide your customers with an avenue to provide you feedback. This feedback is valuable. You can use it to improve your planning, which in turn will improve your business and increase customer satisfaction. You will also be able to send out loyalty vouchers, via email easily, and create blogs to inform your customers about new products and services.
The benefits of ecommerce in helping small business be successful cannot be understated. If you are reading this, then you are part of an advanced party of business owners who are starting to broaden their knowledge of eCommerce in an effort to procure a competitive advantage. Most small business are still one dimensional in their customer service. You have the chance to get the jump.
The last point about factors impacting small business is the economy. While this is largely beyond the control of business, by offering an eCommerce solution, you can reduce the cost of doing business. Think about how much it would cost you to keep your shop or warehouse open 24 hours a day, 7 days a week. By providing eCommerce, the only operating cost, in providing a 24/7 solution, is the hosting & support required to keep your website live. All emails, orders and feedback can be attended to in normal business hours. However, your customers can find your website any time of the day or night, any day of the week. They can see your product range, select and pay, all while your at home with your family and friends enjoying work-life balance. eCommerce automates the process of serving your customers. You can keep your costs down, but provide higher levels of service. This will lead to repeat and increased business.
If you are considering eCommerce, we would be only too happy to be of assistance. Simply click here to find out more: eCommerce
