Winning the online war

NZ Business, Mar 2007 by Baker, Glenn

The Internet continues to impact on how the world shops, and the way business is conducted. Glenn Baker reports on how to make your online business a success.

There're not many people starting an online business today who don't dream of following in Sam Morgan's footsteps. TradeMe is, and always well be, regarded as the epitome of online business success - a start-up that in a few short years netted its founders millions of dollars. If that's online business, who wouldn't want a slice of it? But before we get too carried way, time for a reality check. The truth is that a large number of online businesses fail and end up owing their owners large amounts of time and money. What's even sadder is that many of these disasters are preventable.

So what are the key factors that contribute to a successful online business? For the answers we spoke to a number of web design and online business professionals as well as online business owners who are putting the 'clicks' on the board.

Alex Garden, owner/manager of NetInsites, a company that specialises in Internet strategy, website design and management, believes that all successful online businesses have a great product, service, offer or idea. They are also continually enhancing and evolving their sites, and adding innovative services. They mostly have an international focus and timed their launch perfectly - TradeMe, for example, effectively shut out eBay from the New Zealand market by getting in first.

Danny Sunkel, CEO of web development and management company Zenago, agrees that online businesses, to succeed, must generally be first to critical mass."Avoid the 'me-too' trap; it's very hard to beat a strong incumbent at their own game"

He says a site doesn't have to be about just generating revenue either - bank sites, for example are about making life easier (for the customer) and saving money (for the banks). "Successful online businesses all offer a tangible benefit to users and other businesses."

Darryn Melrose, CEO of direct and interactive marketing agency AIM Proximity believes that success is about understanding the 'pull, not push' nature of online business.

"It's about attracting customers, giving them extra value and retaining them. There's such a huge choice available to customers online that the key is to engage them in dialogue, treat them as individuals and interact with them." He uses Amazon.com as a good example of this. "It's a site that appears personalised - it recognises you, remembers what you like and adds value along the way. A site that treats you as a stranger every time you visit is not going to cut it."

There's no 'silver bullet' to instant online success, but don't get disheartened, says Alex Garden - there're lots of potential ideas to capitalise on. "We're still very much in the early stage of Internet development."

Website design basics

Next to a great offer, an intuitive, easy to navigate interface is one of the keys to a successful web business, says Frank Gilbert of Solutionists, a web design and content management specialist. "There also needs to be constantly changing content - customers expect it, and so do all the major search engines."

This leads on to one of the most often mentioned requirements for websites - that of search engine optimisation (SEO) - ensuring that your site ranks in the top ten (or first page) of any relevant search. (Bear in mind that this is also the goal of your competitors!)

Continually test and measure your keywords in search results or you'll be in danger of getting pushed down the rankings. It requires smart web management to stay on the first page of Google's search rankings.

Zenago's Danny Sunkel suggests that a lot of SEO is smoke and mirrors, and it really comes down to having a site that has quality, up-to-date and relevant information. "Do that and much of the battle will be won."

Sunkel stresses the importance of good website structure to engage customers online. "Design is also important, people will always remember a site for its design, and good design inevitably builds a good structure." He warns that 'Flash' video inserts only suit specific markets and products, so be aware of your target market - "Google struggles to find Flash-driven sites anyway."

His other design tips? Make copy short and to the point; if you're going to show your products, show all of them; keep your site up to date; and make it easy for people to contact you - especially if they get stuck during the online buying process. "If they can't click to communicate you've more than likely lost them."

Also, be careful that you can deliver products and services as promised on your site. "If a product is temporarily not available say it up front - not when they're about to click 'Order Now'", advises Sunkel.

Going 'live' just the beginning

Making compromises on your online business site means limiting revenues, and Melrose warns that websites can be viewed by IT staff as a project with the priority merely to keep the system up and running.

"It's not about building stuff; it's about interacting with your customers - capturing information and using that information. When your e-commerce site goes live, understand that the job is only just starting. You constantly need to review it."