When
will the number of consumers using the Internet
have reached a critical mass?
We
are very nearly there. 17.9m people already enjoy
net access. The proliferation of e-commerce sites
on the net also suggests that a critical mass is
beginning to form. This year will see access to
the Internet in the home become the norm rather
than the exception and be a "festival"
of e-commerce which will force traditional retailers
to really sit up and take notice.
What
is the best source of accurate statistics about
Internet usage and e-commerce?
NOP
surveys for general information, Fletcher Research
for in-depth guidance and New Media Age for its
aggregated information from a broad range of sources.
What
is the best way of telling a good web site design
agency from a bad one?
Check
how much experience the agency has. It is a good
idea to ask the agency to quote the URL of sites
that they have already designed. Look at these sites
online and perhaps talk to the companies concerned
to see how effective the designs have been for them.
A good agency will listen to you, understand your
requirement and involve you in the design process
to ensure the end result precisely meets your need.
Is
it better to be part of a "shopping mall"
with other retailers from complementary retail areas?
This
all depends who you are. At this relatively early
stage in e-commerce development, the big issues
to be overcome with consumers are trust and security;
so brand name is more important than anything else.
Therefore if you are a brand name now you can probably
go it alone, but if not you will probably be better
off in a trusted "shopping mall". As a
brand name of course, you could do both.
Should
e-commerce be part of our marketing department or
a stand-alone business unit?
E-commerce
is transforming the way organisations do business
and so must be fully integrated throughout the company.
The marketing function is responsible for meeting
customer needs, it must work with other business
functions to ensure those needs are met. The web
is currently affecting core areas such as customer
service and the sales process. Businesses need to
plan the integration of e-commerce within their
business processes but it is up to the marketing
department to champion the benefits of e-commerce
for customers.
How
secure are Internet transactional facilities?
At
present, the majority of Internet payments are made
using the Secure Sockets Layer (SSL) technology
built into most browsers. This encrypts credit card
details in transit, but does not guarantee the buyer
or seller's identity. Banks are currently trialling
the next generation technology, SET (Secure Electronic
Transaction), which provides virtually unbreakable
encryption, authentication of the trading parties
and guaranteed confidentiality. In time, SET is
likely to become the global standard for Internet
commerce.
Is
e-commerce a threat to our direct mail business?
E-commerce
is becoming a key communication and transactional
channel in the marketing mix. Yet direct mail keeps
growing, a tried and tested, cost effective means
of building relationships. In many respects, e-commerce
is a driver of direct mail. In the final analysis,
direct mail can enhance e-commerce and vice versa.
New media are leading us away from broadcast and
towards relationship marketing - a future in which
direct mail has a major part to play.
How
do we go about attracting users and customers to
our web site?
Go
back to basics. Who are your customers, do you want
them all coming on-line, how do they normally use
the Internet? Provide a tangible reason to visit
and to return. Expeditious replies to enquiries
are essential. Determine the initial reason to visit
and include it in the marketing mix. Most of your
new on-line market will be won via on-line promotion,
which should be clearly structured and consistently
executed. Above all, ask customers what they want
from the site.