Making eBusiness Work

Have you heard the latest news? It turns out the Internet can be a moneymaker after all. 2003 saw a 27% increase in revenue generated from online sales over 2002, with holiday sales alone reaching over $12.5 billion. Unfortunately, the scars from the dot-com bust still run deep, and a lingering sense of distrust, hesitation and even fear in the "e" word continues today.

Despite the record-breaking numbers that countless eTailors are seeing, many companies remain hesitant to initiate a truly comprehensive online strategy, choosing instead to spend small amounts of money on poorly conceived and poorly executed initiatives, and inevitably being disappointed by the results. So just how are some companies able to develop, deploy and grow successful online enterprises? In short, by following the "four Cs"- comprehensive planning, controlled spending, constant monitoring, and continual improvement. If you think that sounds like a rational approach to business planning, you're right. The secret to online success is really no secret at all. It comes from following the same reality-based rules of business that have kept your company successful. As with any business initiative, the key to a successful eBusiness lies in properly aligning the capabilities of the resource with the opportunities within your business and market.

With consumers spending over $200 million per day online, there is no question of the web's value today. The real question is whether it makes sense to your organization to conduct business online. If you've patiently waited for the right moment to build (or rebuild) an eCommerce web site, now may be the right time to revisit the idea. As most industry experts will tell you, it's important to keep your focus less on 'when' and more on 'how'. But before you pull out budget sheets and scare your employees with Amazon.com-like visions, keep these tips in mind.

Plan, plan and plan.

The old saying "if you don't know where you're going, any road will take you there" is true. Without a clear, comprehensive plan, your eBusiness results will most likely range from disappointing to disastrous. "Planning is the single most important aspect of developing a successful site", says Brian Kent, Founder and CEO of San Diego Media, an eBusiness solutions firm that focuses on customer profitability. "Attempting to develop a successful eCommerce web site without proper planning and management consensus is like attempting to build a house without a blueprint... it just doesn't work." According to Kent, such planning not only helps to define the company's online strategy, it often strengthens the overall goals of the organization. "It's not uncommon for companies we consult with to re-focus their energy on core competencies. They realize what they do best, they do it better, and they reflect it online."

Understand your customer.

Just as important as understanding your company is understanding your customer. Whether you're serving them through a brick-and-mortar store or a click-and-order web site, they represent the lifeblood of your company, and keeping them happy is paramount.

A distinct advantage of web technology is the ability to capture in-depth information on your customers' shopping and spending patterns. Today, successful eBusinesses spend a significant amount of time and resources examining these patterns, continually improving their understanding of their shoppers and frequently enhancing the online shopping experience. "It's a win-win situation", says Todd Wente, a senior strategist at San Diego Media, "the customer has an easier, more custom-tailored shopping experience, which results in more time shopping and more spending with that eTailor." Understand available technology.

It is the coordinated effort of incredible technologies that make the Internet the information powerhouse it is today. From blinding fast broadband connection speeds to massive informational databases to processors that double in capability every few years, technology makes the online world go 'round. Having said that, keep this in mind technology can be your best friend or your worst enemy. While technology will ultimately define, run, and support your eBusiness, experts caution becoming enamored with these state-of-the-art tools too early in the planning phase. "As always, a lot can be heard about the changing technology of the internet", says Wente. "If you're just starting to plan, my advice is don't listen to it.

Focus on what you want to accomplish first, then find the technology that can help you achieve it." According to Wente, putting strategy before technology is key. "It's common to see companies become distracted with the promise of new technology without defining a reason for having it. The end result is almost always the same- their online effectiveness is compromised."

Keep it flexible.

In business as in life, the future is never certain. The nature of your customers, your products and services, and your industry are in a constant state of change. While predicting these changes is nearly impossible, planning for them is not. "Developing an eBusiness that can adopt to changes is critical to success", says Brian Kent. "It always goes back to planning- always try to plan based on what you have, what you want, and what could happen."

According to Kent, flexibility is critical to every aspect of a company's web strategy. "Design, content, and of course technology should have the ability to adapt to new customer needs and demands. The age of real-time, 'on-demand' service is here to stay, which means everything needs to be scalable and flexible."

Remember that looks are (almost) everything.

How many times have you walked into a store that was unappealing from the outside? Unless they were selling exactly what you needed at bargain prices, probably not that often. Major retailers spend millions of dollars every year on their storefronts and interior design, and for good reason. "Customers want to be treated to a comfortable, inviting experience," says Wente. "The same is true online. Your homepage is your storefront, and if it doesn't emotionally resonate with your customer, they won't come in. Having intuitive, easy-to-use navigation is equivalent to a great store layout; customers want to easily find what they're looking for."

Market intelligently.

As everyone in retailing knows, just building a great looking store isn't enough. Effective selling comes from constantly marketing your products and services, and the same is true online. While it's possible to spend enormous amounts of money in online marketing and advertising, highly effective targeted marketing can be done with modest budgets if you know what you're doing.

Online marketing is more about pulling than pushing", says Wente "Your customers are online looking for you. Optimizing search engines and establishing affiliations are just a few ways to allow them to easily find you." But according to Wente the goals are still the same. "Compel them and sell them- and spend only what gives you measurable results."

Invest for the long term.

Remember that your eBusiness is still a business. Just like any brick-and-mortar location, our online investment requires constant attention, maintenance, updates and ideas to be successful. Allocating monetary and personnel resources is not a question of 'if', but to what degree. "Cost is predicated on need," says Kent. "Every eCommerce site is different; obviously a customer earning over a million dollars per month will need to dedicate more resources than a company earning ten thousand. The key is matching revenue and expenses and focusing on profitability."

With proper planning, flexible technology, and a continual focus on customer service, your company can reap the very tangible and measurable benefits that eBusiness can provide. "If there is any magic formula to success, it lies within a solid and flexible plan for serving customers online", says Kent. As with any successful business endeavor, achieving this takes realistic planning and long-term commitment.

The good news? The payoffs can be enormous.