In the uncharted territory of the Wild Wild Web there's a gold rush. Companies are staking claims. Some are breaking new ground, taking risks, attracting significant capitalisation, while others wait to see a strike before they invest. But are the rewards worth the effort and the risk?
The real winners in the gold rush are those who develop a relationship which keeps the customer coming back. Amazon.com has still to make a profit and yet has a huge market capitalisation. Why? It's all to do with future profit potential from the 7m-plus customer base, the relationship which exists and its potential value. Amazon. com customers show a 64% repeat purchase rate.
The company is replicating the success with amazon.co.uk. So what should UK and European companies be doing now to 'tame' the www and carve out territory? If you don't have a website, get one. Not having a URL is the equivalent of being ex- directory. Make sure you have thought through why you want a website and how you will use it in your business, set objectives which are measurable and promote your presence online and offline all the time and in a consistent way. Too many businesses have poor offline and online marketing programmes, then wonder why they don't generate the site traffic they expected.
If you don't know how to do it, get someone who does. A good internet marketing consultant will get you noticed for small amounts of money. Site traffic brings numerous additional business opportunities . Look strategically at how your business operates and seek to automate processes and migrate these to the web. I have worked with businesses which have set up a website for £2000, operate 24x7, have integrated secure online ordering and payment processing in place and are making huge returns on investment. Most will not talk to you about how its done, they are making so much money they want to keep it a secret!
You can slash the cost of sales by migrating traffic to the web, But be sensitive to your existing channels; you won't want to alienate them. Find out what will work for your business now by testing different sites. The cost of entry is small if done this way and will save you lots of money later.
Use research in all its forms to discover what people want from you, when, where and, importantly, why. Build your online brand, it could be your greatest future asset. Perceived wisdom suggests that consumers will select a maximum of six to eight core brands in the digital world from whom they will purchase a large percentage of their future goods and services and a series of 'niche brands' linked to particular lifestyle interests. The big players know this, that's why they want to control this area.
The integration of call centres and the web in managing real-time communications will accelerate. New channel strategies will be required as businesses and customers move online and new marketing programmes will be required to get you noticed in an increasingly crowded world. But there is a danger that all this technology can get in the way of personal service.
In the new digital world customers choose, not companies. Different customers do want to be treated differently but they do not want over-engineered solutions. The "keep it simple, stupid" principle is important. Design everything from the customers' perspective and make the experience something they will want to repeat. That way you'll win them and keep them. Ken Sturgeon is managing director of Ronin Corporation, a marketing research and consulting company and is an internet marketing consultant.
• Ken Sturgeon is managing director of Ronin Communications, a marketing research and consulting company and is an internet marketing consultant
