Using the Internet to Increase Sales
Monday, January 09, 2006 03:30 AM
Due to geographic location, businesses in the Prince George region have a limited market to sell to. This means that any business that wants to expand their customer base, and increase revenues, must look outside of our immediate area. While sending out salespeople to cover other areas is a method that has been used successfully by a number of Prince George businesses, there are other tools available.
One of the tools that has seen phenomenal growth over the last ten years is the Internet. While the memory of the dotcom crash is still fresh in most people’s mind, it shouldn’t be a deterrent for expanding your market. Businesses have learned to utilize the Internet in a number of ways. Some have relied extensively on the Internet to “run their business”, while a significant number use the Internet to supplement and enhance their existing “bricks and mortar” operations.
However, no matter how you utilize the Internet for your business, there are some key success factors that will increase your use of the Internet for business.
First you need to use words and phrases that will show up on a search engine. For example, instead of only using the word Internet, you may want to add words such as “the web” or “online.” The secret here is to think the way your customers do. Use the words and phrases that they will use when listing information on your website.
Keep your website design simple, easy to read and navigate through, and allow surfers to easily load pages. This means that you should keep any graphics, video, flash or pictures to a minimum. At the very least, give your online customer the chance to choose whether they want to view these files or just bypass them. A good rule of thumb is to use thumbnail photos and give the customer the option of loading a larger version if they so desire. Remember, your customers aren’t looking for a flashy website, they’re looking to purchase your products or services, not to mention that not everyone has access to high speed Internet service.
Ensure that your system is set up to take orders online and that the process is easy for customers to understand and follow. You will need to make sure your site can accommodate shipping information from other countries. For example, the United States uses Zip Codes and has states, not provinces. Other countries have different phone numbers and area codes than those used in Canada.
Don’t forget that some of your customers might be viewing your site in another language so take the time to have someone interpret the site back from languages, such as French and Spanish.
Using online auctions, such as ebay, is one of the easiest ways to get started in the online sales format. While you have very little control of how the site looks, or how the product is presented, there are a number of benefits that make this form of online selling attractive.
One of the most attractive aspects of online auctions is that you don’t have to build or expand your existing web site to accommodate the online sales. Not only does this save money, but the time to develop and maintain the website sales is very minimal. In fact, in some cases you pay a listing fee at the time of the sale, so if the product does not sell you don’t pay.
Another significant advantage is that these online auctions have a very large built in customer base. Literally millions of potential customers are online looking at your products. This means that your business can be exposed to hundreds of new potential customers throughout the globe. Added to this is the fact that a number of businesses use online auctions to source older, harder to find parts and equipment. This means your business can sell off old or outdated stock without having to spend a great deal on marketing.
An overlooked benefit of online auctions is that you don’t have to sell your product as an auction item, but instead can list it at a specific price. Ebay calls it the “buy it now” option. You can also list the number of available items for purchase for those customers who want to buy more than one.
A key factor that online auctions can add to your business is that they can create “instant” credibility and allow customers to purchase from you with a level of confidence that you aren’t a “fly by night” outfit that is going to “rip them off.” As most online auctions have public feedback potential for all sales, this helps to eliminate the chance that unscrupulous sellers or buyers are at the other end of the transaction.
Of course, the methods you use to take payments can have a significant impact on your sales, both in actual number of sales and dollar amounts per sale. As mentioned, ensuring credibility, accompanied by an easy payment method, is a must. As well, customers are very concerned with the security aspects of sending payments to you, either via mail or online. The use of third party payment systems is a must, as most potential customers will not purchase from you unless they are sure their information is safe. The number one reason that people do not use the Internet to purchase goods and services is the security risks involved with personal information and payment.
Whether you intend to conduct all your business online, or are going to use the Internet to supplement your business, make sure you pay attention to those key success factors that impact your online business. Just because you build it doesn’t mean they will come.
-Myron Gordon owns TMSG Management Services Group, which provides management and financial services to growing businesses.
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