AVERICOM Blog
In 2007, AVERICOM founder Peter Bowman was asked by CMP media's Internet Evolution to write a weekly Blog under their "ThinkerNet" online expert column. These blogs and other posts can be read here or by visiting www.internetevolution.com
With the turbulent economic environment, many once-stable brick-and-mortar brands like Circuit City, The Sharper Image, and Comp USA have fallen out of play or migrated strictly to online models -- a trend some analysts are now calling "Retail Darwinism."
But not everyone will make it online. Businesses that simply use the Web to flee offline costs won't last long.
Businesses that operate online have an exceedingly challenging course to run in the next chapter of our economy. First and foremost, they need to decide what the proper balance of spending should be for online-versus-offline sales. Typically, offline sales have been more expensive to close versus those closed online, but that model is changing as competition for online transactions rises quickly.
Those businesses that do not invest in satisfying consumer needs online will become less likely to survive this natural selection era of online commerce.
Businesses need to blend and balance their online and offline offerings. Even though the Web may be a minority channel of sales for many businesses, the fact is that consumers' desire to learn about and locate products and services online will continue to grow.
Businesses online also must learn to follow through. Many companies are chasing online commerce with investments in sales and marketing, not the customer service side of the business. The fact is, very little effort is being made to improve the customer experience after the actual sale is made. This results in poor customer service for items purchased online.
I recently bought a designer product directly from a very reputable brand online. The product was delivered to me defective, but instead of dealing with the issue directly online, I was forced to fix the problem in an offline transaction at a local retailer that was plagued with problems -- thus making the whole experience a significant negative.
The point is, if you purchase something online today, it's likely you will have a high percentage of success and satisfaction only at the point of sale -- the Web. If you are forced by circumstance to require any type of service, support, or assistance post sale, you will quickly find a major gap between the selling and servicing sides of most businesses that have an online presence.
Retailers and online commerce strategists need to understand that the consumer is smarter and faster than they previously thought and will not tolerate being brushed aside in the digital world, especially as people cut back their standards of living. Consumers are just as frustrated at the state of economic affairs today as businesses are, and that translates into more aggressive consumer behavior when dealing with online e-commerce issues and customer support needs.
Online retailers that have reduced the back-end costs of customer service representatives to offset sluggish sales are doomed to fail. Only those online retailers that continue to push the envelope in product search, video information, ratings and reviews, and developing online conversations will ultimately succeed in the space. Additionally, those businesses that negate consumer needs online after the sale will quickly find themselves immersed in an even greater trend of declining sales.
A History of Success
With online consulting, development, management and marketing experience dating back to 1994, the AVERICOM portfolio of services blends traditional best practices with the latest proven technologies affording our clients the strategic edge required to succeed in a demanding and competitive digital economy.
Our services may be utilized as needed or bundled together in a comprehensive project or partner role. We encourage you to explore and learn more about each of our core services and the resources available in each of those disciplines.