|
by Terry Brock
You know it’s there. You know it is powerful.
You know that the Web is changing the way that you will do business and live
your life from now on. However, we still hear many in the press try to undermine
what is happening by stating that it really isn’t that big. We also hear tales
of nothing but sex and dirty pictures out there.
The truth of the matter is that many companies
are achieving enormous success by using the web properly. They use it to
advertise, communicate with existing customers and to generate actual sales
(yes, you read it right, sales over the Web.)
These successful companies can teach you and me a
lot about how to run our businesses. Even if they’re in a different industry,
we can benefit from the same principles that they demonstrate. Here are just a
few examples:
- Auto-by-Tel. The image that most
Americans have of buying a new car is about as pleasant as getting a root
canal. When you walk into many dealerships you are attacked by the next
salesperson waiting, like a vulture, to pounce on their next victim (you!).
Atlantan Pete Ellis had been in the car business for years and had grown
tired of the tactics and image. He thought there would be a better way. He
was right. Ellis founded Auto-by-Tel (ABT) in February, 1995 and has grown a
substantial business. ABT (http://www.auto-by-tel.com)
allows a potential buyer to go to their website and enter the desired make,
model and features wanted on their next car. Potential buyers can also enter
the price range desired. Then ABT delivers that information to dealers who
have registered with their site so that a quote can be delivered to the
potential buyer. There is no haggling (good for both customer and dealer)
and little hassle. This concept has grown from 5,000 purchase requests per
month to over 60,000 since its inception. The added benefit is that most of
the people using computers and checking on this service are in the upper
demographic areas with more disposable income. Success Lesson Learned: Make
things easier for your customers to buy with less hassle and aggravation.
Also make it easier for yourself to sell and service with less hassle by
effectively using the Web.
- Dell Computer. An old joke running
around the computer industry goes like this: "What’s the difference
between a used car salesman and a computer salesman? The used car salesman
KNOWS that he’s lying!" True or not, many people have found large
levels of aggravation in buying a computer system just like in buying a car.
Mail order operations have taken a larger and larger piece of the computer
pie in the past few years. Dell Computer, from Austin, Texas, is leading the
pack. Their website (http://www.Dell.com)
allows buys to enter the type of system desired. You can add components to a
system as you design it yourself. You can then check the price tag quickly
and easily. From there you can add or subtract items depending on what you
see in the bottom line price tag. You can then place an order online or call
their toll-free order number and place the ad. Michael Dell recently was
quoted in Fortune magazine saying, "The Internet is like a booster
rocket on our business. Not only are some sales done completely online, but
people who call on the phone after having visited Dell.com are twice as
likely to buy." In March of this year, Dell said that they were selling
over $1 million EACH DAY through their website. This is IN ADDITION to the
sales over the phone. In June, Michael Dell adjusted that number to state
that over $2 million is being sold each day. Not bad for a medium that the
main press claims is for only hackers and sex-crazed computer nerds. The
stock price of Dell has gone through the roof this year and generated
bodacious profits for those smart enough to get into it. Success Lesson
Learned: Find creative ways to offer your products to potential buyers
that is not intimidating, easy for them and less cost to you.
- Amazon, Barnes and Noble and Book Stacks
Unlimited. The way we buy books has changed forever thanks to the Web.
Amazon.com (http://www.amazon.com) is
well known for the thousands of books it sells each day over the Internet.
Barnes and Noble has now provided competition on-line at its own site (http://www.barnesandnoble.com).
Book Stacks Unlimited (http://www.books.com)
now provides 40 percent discounts on hardcovers and 30 percent on
paperbacks.. This type of savings is a strong lure for those serious about
buying books and being well-educated. While at books.com, be sure to check
out the realaudio version of news related to books. Although profits are
still a bit murky, the Web is the way many businesses are moving for the
future. All these sites provide ways to not only buy books, but to get
information on the authors and the titles that would otherwise be difficult
or impossible to obtain. They are doing things online that can’t be done
in a traditional bookstore. Success Lesson Learned: Find unique ways
to save customers money and make it easy for them to do business with you.
Provide added value that would not be obtained through ordinary channels.
- Security First Network Bank. The
granddaddy of Internet banking still can teach all serious businesses some
lessons. At their Website (http://www.sfnb.com)
you can take care of your normal banking and more. You have 24 hour support
and help through e-mail as well as voice support. When you enter their
Website you see a picture of a traditional bank, complete with tellers,
desks and even security. As a customer of SFNB, you can check your register
and know that you’ll never be out of balance. You see your register from
the bank showing exactly what your balance is currently. You can make
payments automatically (like mortgage payments to go out on a given date
every month) or once (like a payment for a given item). Security is
rock-solid as they use some of the highest levels of encryption and security
available today. The best part is that you get free checking here (unlike
with other banks online) if you maintain a balance of $1,000. Success
Lesson Learned: Make doing business with you easy and fun---particularly
for those less-than-desirable tasks like paying bills. The easier and
cheaper you make doing business with you, the more likely customers are to
stay with you.
Many other examples could be cited. Companies
like Dow Jones with the online edition of the Wall Street Journal (http://wsj.com)
provide news and actually charge for the service. The content they provide is
valuable enough that people will pay $29.95 per year extra if they get the print
edition ($49.95 if you don’t get the print edition). CD Now and World Wide
Music (http://www.cdnow.com and http://www.worldwidemusic.com)
provide not only the ability to purchase cassettes or CDs, but the ability to
listen to select cuts of the albums on line.
Business owners can learn a lot from these and
many other successful companies. Use the web to leverage your products and
services; discover unique ways to provide solid value to your customer base that
costs you and them less and make tedious, must-do tasks (like banking) something
that takes less effort and provides new services. Money is being made on the
Web. Use these ideas a springboards to take your business to the next level.
Terry Brock is an internationally recognized professional speaker,
consultant and author in the fields of business productivity, technology and
marketing. His is a syndicated columnist for Business Journals across
America and can be reached at 407-363-0505 or by e-mail at
terry@terrybrock.com.

|