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Is E-Business for All Business?
How New Mexico companies, large and small, are using the Internet to make their cash registers ring.
THINK BACK TO 1991. JOHNNY Carson said goodbye to late TV, Vanilla Ice was on the radio, pre-ripped jeans and the Ninja Turtles were "cool," caller ID units were the newest gotta-have gadgets, and the Lexus was a newcomer to the luxury automobile market. A stamp cost a quarter, and a gallon of gasoline was about $1.14. Chances are, if asked about the Internet, many folks would have guessed that it was the latest fishing or tennis product.
How quickly time flies in the realm of technology, where the latest computer is obsolete before we can get it out of the box. In business and on the home front, computers have changed the way we buy, sell, correspond, work and live. We rely less on telephones, the postal service, shopping malls, and even our own employees because we can often do the job better and faster with the click of a mouse.
In just over ten years, e-mail and the Internet have gone from high-tech buzz words to household and business necessities. In order to successfully compete, small businesses and Fortune 500 companies alike have been forced to adapt to a new, computerized way of doing business in a relatively short period of time. You would be hard pressed to find even the smallest "Mom & Pop" store operating without the use of a computer or using e-mail.
Large corporations and institutions stay on top of cutting edge Internet technology by spending millions on R&D, technological upgrades and web-savvy experts. These businesses have operated widely successful, monster web sites for years, offering everything from online shopping and banking to surveys, technical support, virtual tours and any other service consumers might dream up.
The secret to these successful web sites has been interactive capability--the power to offer the products, services or technical support consumers want, when they want it, without having to leave their homes or workplaces. A company's use of e-mail as an interactive marketing tool is what makes a web site more than just an electronic Yellow Pages ad. This interactive capability relies heavily on e-mail technology, which is quickly becoming as widely available to consumers as a telephone, and is an affordable option even for small business web sites.
After reviewing hundreds of New Mexico web sites, it's evident that many small and medium sized businesses maintain a web site, but are not use that web presence wisely. In fact, dozens of local businesses neglected-not only to offer an e-mail address, but left off such important information as the company name, product, and even a phone number!
Even small New Mexico businesses including plumbing companies, printers, jewelers, various clothing and gift shops and one-man operations will find a number of local competitors with web sites. If your company's web site does not answer all of the customer's questions, provide a simple means to locate information and an e-mail address for customers to easily communicate with the business, a competitor is only a click away.
Jennifer Harris, marketing director for Web-Galleries.com, an award-winning web site marketing, design and consulting firm in Albuquerque, says that a successful web site should go beyond advertising your business and providing customers with an e-mail link. "Even a basic web site should not only give customers the opportunity to contact you via e-mail, but it should also incorporate a 'Call To Action.' That is, it should give customers a reason to contact your company today," Harris explained. "A Call To Action could be in the form of a printable coupon, a discount for ordering online or a gift certificate for subscribing to your online newsletter. Whatever works with the technology you have."
Brenner Rigler, president and CEO of Albuquerque Florists, Inc., which includes Colette's Flowers, Tartaglia Flowers & Gifts and Casa del Flores, knew that Internet presence and online communication was important in a business that depends heavily on individual daily orders. An FTD affiliate, Rigler had access to an Internet "shell" provided by the national chain that included a pre-designed web page, online catalogue of products, online purchasing capabilities and an area to insert the local company name and contact information. In addition to the albuquerqueflorists.com web site, Rigler hired a web design professional to create a separate web page with a more local flair for his main store, Tartaglia Flowers.
Rigler extols the importance of a consumer's ability to e-mail the stores with questions, comments or orders. Many customers who still prefer the telephone order arrangements they originally saw on the web site. Recently a couple from out of state e-mailed Rigler to inquire about flower arrangements for their wedding, which take place in Albuquerque.
"I answered their questions about some arrangements they saw on the web site, quoted a price and booked the entire wedding and reception floral order through our web site without ever speaking to the couple. It's an invaluable tool, and today you just can't survive without it."
Now that online services have become mainstream, larger businesses are exploring other avenues by which e-business can cut costs and increase sales. Despite the recent shakiness of the dot-coin industry corporations are exploring online business-to-business options including procurement of office supplies, operating equipment and raw materials. Rather than looking to e-suppliers offering products exclusively via the Internet, corporate decision-makers are seeing a slow trend by their current suppliers toward offering an online ordering option, thereby allowing corporations to do business online without changing suppliers.
A good way to build a loyal customer base with online customers, according to Jennifer Harris, is to use e-mail as a starting point and then build additional opportunities for consumer interaction on the web site including online ordering, technical support, press releases and online newsletters.
"Whether they contact you via phone, the Internet or in person, give customers the opportunity to subscribe to an online newsletter, for example. You then have the opportunity to contact the customer on a regular basis with news, specials, and important information," Harris said.
In addition to ordering a good percentage of supplies online, Dale Dekker, president of Albuquerque architecture firm Dekker/Perich/Sabatini, uses the Internet to meet a number of corporate and customer needs. "The market for good architects and interns is tight right now," Dekker said. 'A good architect is more likely to apply for a position with us if he or she likes our work, which is where our web site comes in."
The web site, located at dpsabq.com, gives potential employees as well as customers an overview of their work, a list of awards and affiliations, biographies of Principals, and a list of job opportunities with corresponding e-mail addresses where interested applicants can forward a resume.
As you might guess, the typical customer interested in building a strip mall or a library most likely will not shop for an architect on the web. However, Dekker/Perich/Sabatini clients find the web site to be a valuable supplemental source of information. Additionally, Dekker says employees develop mailing lists through the firm's professional affiliations to send e-mail marketing letters to interested customers.
When sending marketing or advertising material via e-mail, it is important to contact only those customers who have requested the information. Unwanted and unsolicited e-mails, commonly referred to as SPAM, are annoying to customers and can lead to unwanted headaches for the sender. To protect your business, Harris recommends that all newsletters, solicitation and store discount e-mails include an opportunity for recipients to "unsubscribe," or remove their names, from your mailing list.
As interactive web technology and online purchasing options become more affordable and widely available, small business owners are finding huge markets for their products without opening additional stores, moving to larger cities or spending a fortune on advertising. Used as a marketing tool, an effective web site could turn a hobby into a full-fledged business.
Alex Alvarez, a golf professional and sole proprietor of Alex's Pro Shop at the Gallup Municipal Golf Course, developed a golf club fitting system for friends and family after watching them play with misfit clubs and unnecessary equipment for more than thirty years. Alvarez recently decided offer his Golf Fit system to the public, realizing that the customer base for this specialized service in a small town like Gallup would quickly be depleted.