|
|
 |
|
|
|
|
|
|
|
|
|
|
|
|
Don't E-commerce, E-communicate
In the mad rush to e-commerce, are we losing sight of the need to e-communicate?
Business people hear about their competitors making sales online, sometimes with very impressive numbers, and rush to the web with little more of a goal than not being left behind. As a result, they end up with poorly conceived e-commerce sites that do nothing for the brand and quite often damage the valuable brand assets.
Most online sales are currently just cannibalizing offline sales. Only 6.5% is actual incremental sales. However 500% more young people are going online to make their purchasing decision than were doing so just five years ago. 70% of all purchasers go online for research. In one study conducted in 2002, a staggering 12% indicated that they switched brands purely because of what they learned online. This is unheard of in traditional media.
It means that what you communicate matters most.
Instead of using your site to scream at people to BUY, BUY, BUY! you should be using it to talk to them, educate them, and tell them more about your company or products. The sales will come as a result, especially if your site becomes a trusted source of meaningful information.
Relationship marketing may be a buzzword that's been overused in the past couple of years, but it is a valid concept and works very well online when done right. Those who engage in a digital RM program show more than 600% increase in conversion to purchase when compared to traditional RM relationship marketing programs. The web is an information place and should be used as an information source. People expect it.
Brand is King and always will be. Many CEOs who spend hours working with their brand message have no idea of the value of their brand when people actually type the band name into a location bar. They come to your web site with a real desire to interact with the brand. How much better can it get?
The single biggest advantage of the internet is the ability to educate your target audience. Think about it compared to other media. This is almost impossible with a television commercial.
Invite your audience
On the web, sites are most successful when they invite people, treating them like intelligent beings who can make their own decisions. You never shove stuff down their throats. This doesn't mean you can't be aggressive. Mercedes only allowed people to get info about the C class online. There was no other way to get information during the pre-marketing process. But the web can appear to be disrespectful more quickly than other media, so you have to be warmer and more gentle in your approach.
Once you invite, you have to engage your audience or you will effectively kill your brand. If you invite them to a party, make sure a party is what they find. Competitors are one click away, and if they do things right while you don't, chances are very slim that the online audience will give your site another opportunity in the future.
Treat people like people
Give your audience the facts they need to compare. You can't be successful online without facts. There are never enough! Find things you can point to, like independent third party comparisons. Allow people to sign up for news or to join membership programs. They want you to assist them in making a purchase, and things that make them feel like insiders to information not available elsewhere works wonders. Mercedes dealers allow people to register online for a test drive, specifying in advance what kind of car they want to test. This allows the dealers to be fully prepared ahead of time. But with 3000 daily requests for a test drive, responding efficiently can be a challenge. You can't delay. Dealers who don't respond in 48 hour lose their status as an online retail link. Nike ID is actively used as a test bed for future shoe designs. It's used not to make a profit online, but as a research tool.
Getting to yes
All or this leads to the transaction. The interesting thing is that while 95% of all purchases are still made offline, those customers have already made their decision online because they are empowered by what the web offers them in terms of information. Automobile companies like Mercedes have found that customers no longer ask any questions from salespeople. They walk into the dealership already knowing as much or more about specific models than the people who work there. They've been empowered by e-communications.
Defend your brand with conviction
If you know that 70% of your customers are making their buying decision online then why is your online budget only 3%? You can't expect to have a successful site if you don't support it. Mercedes spends about 20% of their marketing budget in online initiatives, most if it in promotional initiatives. Non-tactile products are easier to sell online. But the principles are the same.
Don't be so bent on building an online store. Build an online community instead and watch the sales climb.