A Good Website is a Great Investment

What can a Web site do for your business? From increasing staff productivity by automating processes to attracting new customers and generating sales, Web sites today can perform a wide range of functions. However, in order for this to work, companies must know where to make the right investment, so that they can carve their own niche in cyberspace and utilize this tool to gain a return on their investment.

DISPELLING THE MYTHS

Myth #1: All businesses need a Web site.
This may sound strange considering the fact I own a Web solutions company, but I do not believe that companies should put forth the investment for this tool if they are not going to give it the full devotion necessary for the site to be successful. Too often, I see businesses create a new site, then do nothing to support it in terms of marketing.

One way to effectively promote your existing or new site is to list your Web address on anything that can serve as marketing collateral, including letterhead, advertisements and brochures. You may also wish to utilize a search engine service such as Google, Yahoo or MSN.

Myth #2: A Web site should cost no more than a few thousand dollars.
This is something usually told to business managers by a friend or colleague, who may be an aspiring Web site creator and is eager to take on the project.

However, when it comes to Web sites, you get what you pay for. A few thousand dollars later, business managers wonder what they ever expected to gain.

BUSINESS VALUE

Before building a Web site, it is important to understand what it can do for your business. Ask the following questions:

What are your business’ primary objectives?
Can attainment of these goals be assisted by a Web site? The Web site should be used to enhance your business. It is not merely an expense, but a tool for generating sales, communicating, collaborating and automating processes.

Does your business produce and distribute printed materials?
Brochures, catalogs, training materials and reports are often created for clients and internal personnel at considerable expense. By simply publishing these items electronically, businesses can save anywhere from 10 to 50 percent in printing and postage costs, thus providing a rapid return on their investment.

How does your business communicate with customers and employees?
From the telegraph to the mobile phone, technology has been improving communications for years. The Internet is on this same track, quickly becoming a very cost-effective tool for communication. Available 24 hours a day, seven days a week, it can connect employees and customers with important, personalized and secured information and even be designed to take orders. In fact, the Internet has proven to be more secure than the telephone, fax machine, or inter-office mail. The benefits of improved communication will increase customer service satisfaction and, in my experience, can reduce communication costs by 20 to 50 percent over the first year!

How does your business find customers?
What does it cost your business to acquire a new customer? What is the lifetime value of that customer? Perhaps the greatest benefit a Web site can provide is attracting new customers. It is the best and most cost-effective medium for engaging a prospect and creating a direct one-to-one relationship. It can also provide easy methods for tracking and reporting the success of these initiatives.

Can common business processes be automated?
Computers have been changing the face of business for decades and continue to offer new opportunities. Customers and employees alike can connect to internal business systems to perform tasks that could only previously be performed by on-site staff. Customers now can complete tasks such as entering orders and checking their status. This allows the sales staff to focus more on customer service than on administrative duties.

HOW MUCH?

Like any good investment, a minimum amount is required before any measurable returns may be recognized. You’ll need to purchase many shares of a penny stock before the profits will buy you an extra cup of coffee. When considering a new Web site initiative, choose a solution that will produce a positive return on your investment in 12 months or less. Technology changes rapidly, so a short-term return should be your goal.

If a business seeks to increase its sales profits by $50,000 annually, for example, it should consider a start-up and first-year investment of about the same amount. The second and later years should show increased returns, because the initial costs would have been recovered by this time. Your budget should be applied towards the initial planning and construction, the ongoing maintenance needs, and marketing and promotion. Many times, these recurring costs are forgotten or overlooked. If the goal is to generate new sales, even the best Web sites are unlikely to ever become profitable without marketing and promotion.

KNOW THE DIFFERENCE

When your business begins investigating vendors to create its Web site, you need to know the difference between the following:

Web Designers vs. Web Developers
Web designers are generally creative people, which means they are responsible for developing images and layouts that make an impression or tell a story. Web developers are programmers, who ensure that the site is functional and runs efficiently. The more complex solutions, such as e-commerce, should only be implemented by a professional developer. A reputable Web solutions firm will employ both designers and developers.

Advertising & Marketing Agencies vs. Specialty Web Firms
Most successful businesses work with a vendor who assists with advertising and marketing initiatives. Often, these partners are the first people you turn to when a Web site need is discovered. Most agencies either work with, or have acquired, a Web specialty firm to better service this need. While Web specialty firms do not have the range of services of these agencies, they have the expertise to provide an effective Web strategy. Partnerships formed between these industries can produce results that help both companies and, more importantly, their clients.

CONCLUSION

A Web site is an effective business tool that can generate revenue, reduce costs, improve customer service, and help your company run more efficiently. Careful planning and calculated investment are the keys to maximizing this opportunity. When determining a budget, evaluate the potential for return and include costs for development, maintenance and marketing if applicable. For best results, select a professional development partner who has experience creating solutions that match your desires.

Biznet Internet Solutions

Biznet Internet Solutions is a full-service Web solutions company, specializing in building custom Web sites and applications optimized for the Internet. By combining its creative marketing talents with strong technical expertise, Biznet is able to deliver dynamic Web presentations that challenge imagination while maximizing its clients’ return on investment.