An online business is most likely to succeed when it is part of a multi-channel strategy, delegates at an online business conference in Johannesburg heard yesterday.
It is critical for an online business to have an efficient offline infrastructure that will support the delivery of orders placed by customers, said speakers at the event, entitled Revolutionising Online Business.
Managing delivery logistics is as important as booking the sale, said Arthur Goldstuck, MD of research house World Wide Worx. As a result, he said, those businesses that have strong back office operations already in place are the most successful at launching online operations.
TheMarketingSite.com CEO Luisa Mazinter agreed: "The greatest opportunity in launching online businesses belongs to retailers, as they are better positioned to establish multi-channel relationships with their customers."
Trust makes the online selling process for the offline retailer easier, as customers are more likely to try a brand sold online if trust was established offline, said Mazinter.
Success drivers
"A business has only one opportunity to lose a customer," said senior Woolworths executive Colin Van Schalkwyk. It is therefore important to ensure the online experience matches the in-store experience, he said.
A good business model is critical to success, said Van Schalkwyk. The strategy needs to outline what the objectives of the online store are, he continued, as well as how the online business integrates into the company`s multi-channel strategy.
Product choices on offer, as well as catalogue size and how the company will access goods for delivery also need to be clear, he said.
In terms of Web development, Van Schalkwyk said the site needs to be fast, easy to use and have a look and feel that is appealing to the customer.
Customers need to find the product, pay for it and leave with as little distraction as possible, concurred Digital Planet GM Warren Moss. Offering a good price, simplicity and intuition are key components of online success, he said.
Online business owners should also be cautious of advertising on their sites, said Moss. Although advertising could be lucrative in the short- and medium-term, it has the potential to distract the customer from purchasing what they originally came for, he warned. Online retailers target the same people - the differentiator is what they offer and when they offer it, he said.
Security not a stumbling block
Security concerns do not stop people buying online, according to Netflorist MD Ryan Bacher.
Results from a short survey conducted by Netflorist show that delivery is the most important concern for online customers, whose expectations of online businesses exceed those of bricks and mortar businesses, he said.
Riding out the lull
Woolworths is staying online, although the current market is limited and some of the major retailers have opted out until it improves, said Van Schalkwyk.
Although revenues are still relatively small, he said, being online is critical for positioning for the future.
Retailers that have opted out will have a hard time re-entering the market, as they will find that respected brands like Woolworths have already staked out a large share of it, Van Schalkwyk said.
The conference concludes today.
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