|
The Emerging Enterprise - The Web And Small Business, Part I
The Web And Small Business, Part I
Using The Web for business? How does your company stack up to others when it comes to using the web as a primary business resource?
By Dayna Haberle-Delmonico
Do you want the truth? The 'information highway' has stagnated into little more than a collection of billboards. Far too many businesses support web sites because 'everybody else does'. That means the technology industry didn't do a very good job teaching the small business world about this new business medium. The promises of using the web to move beyond the marketing
brochure and generate media and create a media outlet are still promises, and the technology industry and the dot com mess isn't totally to blame. Neither is the poor economy. For now, the Internet's maturity equals television's development in the early 1950'sıa neat technology with great potential, but it is not doing much.
Even so, the Web is a pre-requisite for doing business no matter what size your company is. Analysts say between 90 to 98% of U.S. businesses have web access (connections at work to the web) and about 1/3 of small businesses offer web sites. In the Verizon SuperPages.com 4th Annual Small Business Internet Survey, conducted in the 4th quarter of 2002, companies reported that they spend an average of 2.6 hours daily using the Internet for business purposes and 34 percent exchanged e-mail with customers at least once a day, 60 percent once per week or more.
Even if the Web is stagnate in growth and media buzz, it is used. The consensus seems to be that small business uses the web for four primary reasons:
- As a communications source.
- As a professional enrichment resource.
- As a business operations resource.
- As a customer relations tool.
Communicating one the web
One indicator of how much a small business uses the Web as a business resource is the speed of the connection. Still, the survey discovered that 46 percent of small businesses already have a high-speed (broadband) Internet connection, and this number will climb as DSL and cable broadband technologies deploy and proliferate in non-urban sections of the country.
As companies install high-speed connections, they value their company web sites more highly. Nearly three out of four (72 percent) small businesses surveyed said they purchased goods and services from other companies online. This usage could spur even more businesses to add e-commerce to revenue generating efforts.
Email, however, was the first web success, and it remains the most used function. Companies have extended email to support customer retention efforts, and even the smallest companies send customers electronic newsletters and incorporate such marketing devices as e-coupons. It also seems that the more a business embraces the web, in this case enough to have a web site, the more the overall use of the web increases. For example,
- 75 percent of small businesses exchange email with customers.
- 60 percent contact customers once per week or more via email, and if the business has a web site, 98 percent use e-mail.
- 47 percent send an electronic newsletter to customers.
The professional enrichment resource
Clearly the Web is made for research and investigation. and business research is no exception. Keeping abreast of your industry, searching the electronic version of a trade magazine or the Wall Street Journal, comparing manufacturer's and suppliers, or competitive analysis has never been easier. More industries are grasping the cost saving advantages of electronic conferences, seminars and training while e-trade shows aren't far behind. The survey showed this growing usage of the Web.
- 80 percent of small businesses use the web to research and/or locate companies, supplies and vendors
- 65 percent used the web to research other businesses
- 70 percent received business related electronic newsletters
- 10 percent use the online training for employees
The business operations resource
Small businesses also use the web to purchase supplies and products. If you have products and services to offer and your customer base is not confined to a narrow distance (say 10 miles), having a company web site is vital. In addition, the web apparently relieves financial and technology office headaches for many small businesses with 43 percent of those companies surveyed reporting that they performed banking transactions electronically while 39 percent reporting that they accessed software applications through an ASP (application service provider)
Customer relations
The Web will emerge as the ultimate customer communicator for all businesses. Just take a look at Amazon's personalization or LLBeans customer support IM along with our short cuts on CRM and you can see where this is going on a small business level. According to the survey:
- 94 percent of the companies that now sell or market their products/services through a Web site, have a link on the Web site to facilitate e-mail contact with customers.
- 75 percent exchange e-mail with customers.
- 60 percent exchange e-mail once a week or more frequently with customers.
- 47 percent send e-newsletters.
Verizon SuperPages.com's 4th Annual Small Business Internet Survey, was conducted by The Gallup Organization, Inc. for Verizon Information Services. The on-going study is intended to monitor small businesses in the United States with regard to their attitudes toward and involvement with the Internet as a small business tool. The random telephone survey contacted 500 companies in the United States that have 50 or fewer employees.
|
|
|
|
|
Is there a way to make sure that bigger business means better business? Part of the secret lies in stacking the odds in your favor by
working with vendors and partners with a proven record of helping companies scale up without slowing down. But where do you find
partners that can maximize your growth while minimizing your growing pains? They're only a click away, courtesy of the Sponsor
Spotlight.
More 
|
|
