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Web Site as a smart investment

Only a year or two ago, selling the benefits of a company Web site to corporate decision makers was hell. According to a 1997 IT manager survey, the Internet was about as popular as a skunk at a garden party. Corporate managers thought the Internet was over-hyped (more than a third of the respondents complained about diverting precious resources to Internet projects). According to Madison Avenue PR firm Manning, Selvage & Lee, 80% of corporate communicators did not consider the Net an important tool.

More than 90% of Fortune 1000 executives recently surveyed by Spiral Media say companies must have a strong Web Presence to stay in the game. Improving Customer Services and Employee Productivities.

Today, more than half of the Small and Medium sized companies have Presence on the internet. Even small moms-and-pops operations use emails and faxes to communicate with customers and supplers.

According to the Spiral Media study, companies are discovering the joys of intranets and extranets. But a quarter of those surveyed say they have gotten the biggest bang for their buck from the World Wide Web.

Sadly, few small businesses have their web sites done professionally; and even fewer understand and utilized the technology fully to their competitive advantage.

Here are some of the ways Web sites are paying off for companies:

Better branding. 76% of executives report public Web sites have raised brand awareness

Better customer service. According to Forrester Research, companies doing business online spend less time processing orders and more time delivering exactly what the customer wants. Plus using a Web catalog for product information means never getting put on hold.

Better profits. Both customer service and order-taking are cheaper on the Net. Forrester says Internet inquiries are two-thirds less expensive than telephone queries. And computers take orders 24 hours a day, seven days a week -- less expensively than humans. Which makes online orders roughly 4% more profitable.

Still, success doesn't happen overnight. Awareness is the biggest hurdle. Companies that see the best results from their Web efforts work hard to drive traffic to their sites. One firm says it took two years of cold calls, sales presentations, and golf dates to get clients to try its Internet system. Another created "commerce ambassadors" to walk customers through their initial online orders.

How is your company's Web site paying off? Has your company actively encouraged customers to use its site? Amongst corporations, we have seen perceptions about the Internet turn 180 degrees in just a year. How far will it takes us in the next 12 months? Is your company ready for this changes?

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