Discovery Data Systems, inc
12572 Westmont Dr., Moorpark, CA 93021
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(C) 2001 - Discovery Data Systems, inc. All rights reserved world wide.

Notice: All information contained within these pages is by reference only and subject to change without prior notice.

Chapter 5. What can the Internet do for a business.
Look Before
You Web

© 2001 - Barry Wroobel - Discovery Data Systems, inc.

Chapter 5. What can the Internet do for a business.
(note: Set the left and right printer margins to 0.25" for printing)

You have started your business, you have a great idea for a website, now what are you planning to have the website do for you? Many people are a little confused on just what a website can do for them. There are four (4) basic types of websites:

Websites Are:

1. The personal website. - anything goes.

2. The information support site. This is usually either a professional or business site, that is strictly concerned with supplying information to visitors. This is usually not a big money maker, BUT IT CAN BE A TREMENDOUS MONEY SAVER! For many stores that get a substantial amount of customer support calls (customers calling with problems or questions), a website can be an incredible money saver and an incredible support tool for your customers. Many companies have a large catalog with high reproduction and distribution costs. A website can cut these costs by over 90% in some cases.

3. Cooperative sales support site. This type of site is usually a secondary sales site. Typically, this site allows visitors to purchase repair parts, accessories, etc. Usually these sales are tied to the sale of a primary product. Additionally as with the information support site, stores that get a substantial amount of customer support calls, a website can be an incredible money saver and a 24 hours per day, 7 days per week, support center for your customers. Companies with a large catalog with high reproduction and distribution costs can save over 90% in some cases.

4. Front line sales store. This type of store is often referred to as an E-Commerce front line store. E-Toys and Amazon are examples of this type of store/site. These stores do not typically have traditional retail stores, and they serve as the primary (usually only) customer contact point. Currently, this is turning out to be a failing proposition. Some of these stores are actually extensions of the typical "brick and mortar" retail stores and seem to be doing better than the "e only" stores.

websites Are (with some exceptions)…

1. Not good front line advertising tools.

2. Not good front line marketing tools.

3. Not good customer relations tools (although this can be turned around)

Think of it this way. When a retail store sends an advertisement to your home, they do not drop the entire store on your house in an attempt to get you to purchase everything! Instead they send a small piece of paper in your mailbox telling you that they have great stuff and you should come to their store and see what they have. Just being physically located somewhere, does not produce advertising or marketing that draws customers in. All the traditional tools used for advertising and marketing are used to draw customers to any retail store and the Internet is no different. For the most part, the saying, "build it and they will come" is not true for retail stores and it is not true for a website! For both retail stores and websites, build it, advertise it, market it, promote it, involve it, and generate referrals to it, etc. apply equally to retail stores AND websiteS!

There are exceptions to these statements, but as a general rule, most customers have spent time looking in the retail stores and reading publications or the phone book prior to finding your site through a search engine. If you are relying on just search engines to bring in customers, then think about this. Your customers have probably already seen your competitor's adds and products, they have probably already considered purchasing your competitor's products, and they have probably already been to your competitor's website (or worse their retail store) they found from your competitor's advertisement, and your competitor is probably listed in the search engine before you so your potential customer may have never even made it down to your listing. Relying on a website as front line marketing and advertising means that you are almost always going to be playing catch up to get customers to purchase from you, rather than your competitor!

Some people claim that there is an exception to these above statements. The one industry that is making excellent front line marketing use of the Internet is the pornography industry. There is very little off-line promotion of these companies. Don't be fooled. The two major marketers of pornography (at least to the American public) are Playboy and Penthouse. For both of these companies, the Internet represents a very small portion of their revenue. Much of their website revenue that is produced is a direct reflection of promotion in their own magazines and ads. ALMOST NONE of the web front end pornography sites are making money and most are failing.

© 2001 - Barry Wroobel - Discovery Data Systems, inc.
(note: Set left and right printer margins to 0.25" for printing)