Why A Business Needs A Web Site?

Business 101
The objective of a business is to maximize/increase profit by:

  • Increasing revenue
  • Decreasing operating costs
  • Increasing employee moral
  • Increasing customer satisfaction (24 hour banking, downloadable software, easy purchasing, etc)

Business is motivated by self-interest so each decision requires cost justification. Much expense is allocated to communicating with your current or prospective clients about your business. The traditional methods to communicate with customers are through:

  1. Marketing/Sales force (visits, calls)
  2. Printed Literature (brochures, cut sheets, stationery)
  3. Advertising via publications (Yellow Pages, newspapers, journals), mailers, TV, radio, outdoor ads (billboards, store-front sign, vehicle decal)

We'll assume there is a market need for your product or service, you have a quality product or service, you work hard, and you're striving to effectively satisfy customers. With the mindset: "I made money last year so if do the same this year I'll profit" why have a presence in the Internet?

An Argument for the Internet
One basic reason is that there is an increasing expectation of your clients to be available on the Web. The web is not just for advertising. It encompasses much more (rapid information transfer, services, sales, etc.). Consider the Analog versus Digital model of communication to see the breadth of use and benefit of increasing the use of the Web.

Analog: sales force, customer service, 800 number, brochure, TV, radio, middle management.
Digital: services (i.e. e-banking), e-mail, www site, database, voice-mail, fax

Compare their attributes:

Attribute
Analog
Digital
Availability
8:00 am-5:00 pm
24 hrs/365 days
Bias
human error
digital accuracy
Efficiency
mail, delivery
electronic
Privacy
contact required
anonymity
Convenience
by car
from computer
Annual cost
salaries &advertising
up-front cost & maintenance
 

Will you still be competitive in three years by the traditional means of communication? Is your market going to be impacted by increased communications?

Chaotic forces in the market place require guts and investment. Your competitors have taken the leap, shouldn't you?

 

Here is another approach in looking at the purpose of having a web site.


Last Updated: Wednesday, 21-May-2003 14:17:15 CDT
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