Does every company really need a web site?
September 30th, 2005 . by AdministratorI took some time to reflect on this question posed by Mary Schmidt on her blog yesterday. Mary’s a business development and management consultant who works out of New Mexico. (That’s right, New Mexico.) She’s a self admitted Corporate Refugee who once ran with the Big Boys (NEC, Nortel, Unisys, et al.), got fed up, and went home. Now she helps small businesses and entrepreneurs run their businesses in a sane fashion. Can’t say that I blame her.
Mary says that not all businesses need web sites, but only if all of the following apply:
1. They’re happy with their current revenues and profitability.
2. They don’t have any competition.
3. They only want customers within, say, a 25 mile radius of the company’s physical location.
4. Their market space, industry, local weather or the economy will never change.
5. They plan to close the business or retire within the next five years.
So, in San Antonio, that would leave us with a few independent gas stations and perhaps the local taco hut, right? But so many San Antonio businesses remain resistant to using the incredible marketing power of the internet. I think I know why.
A web site seems like just one more annoying intrusion into the already busy entrepreneur’s day. You’ve just got too much on your plate to deal with as it is, and now this technology thing happens. You just mastered the fax machine. If you’re in business, another marketing venue just seems like another problem you’ve got to solve. And this one’s not as simple as going down to Kinko’s. There’s a ton of stuff to learn and if you don’t learn it, you’ve got to pay someone like me to solve the problem for you. And then I’ll tell you that it’s never really solved — you’ve still got to answer emails and make sure the content on the site stays fresh.
The trick here is added an internet component to your business to generate revenue. Marketing is often seen by the guy that watches the bank account as a constant expense with no quantifiable return on investment. News Flash: Your web site can actually generate revenue for you. Now that would make your CFO smile. An actual positive figure generated from a “marketing” expense.
One company I worked with a few years ago turned their $40,000 web investment into a vehicle that earned them over a million dollars in a year. Their initial impulse was to treat their web site like their BBS — as a support venue. Then they moved the responsibility from customer service and assigned it to the marketing department (who spent the $40k). Long story short, I enabled e-commerce on the site and turned it from a drain to a generator. This was a local, San Antonio based business folks — so yes, it can be done here.
You can look at a web site as “just another marketing expense,” or you can re-think your marketing department, and get them selling product.
Don;t you think that the companies most likely to try blogging though are the ones on the way down. Look at Apple vs Microsoft.
Lori, Sounds like you have the same challenges in San Antonio as we do in Albuquerque. Often, the Mom & Pop’s perception of marketing begins and ends with their yellow pages ad - and I’m not picking on them (really). They’re busy running the business and serving the customers they already have. That - and all that tech speak stuff is pretty daunting (as you note).
And, our “conversation”here and on my blog is yet another great example of the power of the Web. When folks tell me they just “don’t have time do that web stuff and blogging.” - I just shake my head. It’s about making connections, learning from others…and yes, that leads to more and better business, even if one isn’t doing e-commerce.
(Oh, and I’ve always loved San Antonio. A childhood friend just moved there from Houston as well and loves it.)
Keep up the good work and Happy Friday!
Piers -
Just the opposite! Look at FoxNews and other media. They’ve found they must blog or be left out of the dialogue. And as far as Mac/Microsoft - who do you think is on their way down? Microsoft resisted the blog - and now “unofficial” blogs from insiders are popping up. If you’re big and you don’t have an “official” blog, others will pop up unofficially. If you’re small, you need to get with the program.
Blogs that are really losers are those who are not speaking honestly to their customers. When a company gets an ad agency to manage their blog, watch out!
Anyway, a blog is just part of Web 2.0 — it’s just another form of web site that’s a bit more owner friendly and easier to update. Needless to say, I think blogging is the next Big Thing for business. It enables the business to speak directly and more informally to their client base.
Thanks for reading and commenting!
Mary -
I agree. Even without an online commerce component, a web site is a necessary tool for making the connections. You make connections, you make sales. It’s like installing a telephone and never answering it. Missed opportunities.
But it’s a hard sale around here. We seem to be stuck in our charming tourist town atmosphere. Just think what our Convention and Visitor’s Bureau could do with a blog! Um, maybe make some connections with those ever-elusive convention planners?
Thanks for your comments — I enjoyed your blog and will keep an eye on it!
BTW, New Mexico is my favorite state (next to Texas of course, I’m a native & Lone Star patriot). I’ve spent many vacations in NM and my honeymoon there. Taos was way early on the community internet map. Very cool place!
Lori -
Great follow-up on Mary’s piece. We say that “it takes a village” to raise a functional web site, and having both the marketing as well as the operations people in on the development and maintenance are both winning factors. Too many people still treat a web site as a misbehaving stepchild (”we spent a lot of money and it didn’t produce results for us”) when what’s lacking are a commitment of time and attention, combined with having a developer who gets your business purpose.
One of our small business clients in California has grown their business over five-fold, all through deciding to do business on their web site – as opposed to just “having a web site.” We’ve been providing services to them for 9 years, and they love us so much they gave us a whole page on their site! Working together really pays off.
Piers
What every business needs is a blog with a smarmy viral marketer lurking about. That’s when you know your venue is becoming effective communication destination.
L