10 Steps to E-Commerce Success

What makes one e-commerce web site a raging success, while another similar one barely gets a visitor much less sells anything? Ask any small business owner and you're likely to get a range of answers from "Cool technology" to "A really sexy web site", and more likely than not: "Being Number One on the Search Engines".

Important some of these things may be, they're not actually the core elements for success! And it's for this reason that most people go wrong when they go online. In fact, the main factors, or decisions, that make a web site successful or not, take place long before a line of code is written, or a graphic designed or anyone puts finger to keyboard to write any copy. We list below, in order of importance, the ten things you should concentrate on if you want your e-commerce web site to be a rip-roaring success:

1. Do Your Research The first thing that you must remember (and this is the bit that everyone seemed to forget in Internet "Gold Rush" of 1999) is that the same business principles apply to your internet business as any other. You must: a) Have a product/service with a solid perceived need; b) you must be able to sell it at a price that is profitable and provides good value to the purchaser and; c) you must be able to reach a sufficient number of potential purchasers (and convince them to buy) to generate enough revenue to make your business viable. And to find out that, you need to research your market. Thoroughly.

The first and most obvious thing you need to find out is the "need" factor. Note I said "perceived" need, perhaps better described as a "want". We buy lots of things we don't need, because mainly we think we need them. So, will people benefit from your product or service? Do you genuinely believe you can convince people they need it? To find that out, you have to ask them! But we're not there yet: it's one thing having a product that people do actually need, but if there are already lots of people supplying it, then you might have a problem with part b. You are only going to be able to sell your product/service at a profit AND and a price people think represents good value if 1) Not many other people provide it or 2) yours is better (and/or cheaper - but for reasons explained later, this is not usually a good route to take). Again, you must do your research and find out before you do anything else. And finally, can you reach this market cost-efficiently and find enough people to buy from you? This is the one great strength of the Internet and e-commerce: it's much cheaper, it's faster and has a much wider reach that any other communications channel so far invented! But it still costs time and money, and you have to be realistic, so you need to research your market and work out if you have the time and money to reach it.

2. Work on your Strategy OK, so now you know, hopefully, that there is a need for your product or service, that not many people offer it at the price/profit/value level that you can, and you know that thousands of people who use the internet a lot and who you know from your research can and do buy online, will want to buy it from you. So now you work on your strategy. This is key. You cannot simply say "Hey, we've got a great product and a big market, let's slap up a web site and we'll get rich!" You need to sit down and carefully work on how you're going to do all of this. You need to know what your goals are. If your goal is to "sell lots" you'll sell nothing! I Guarantee it. You need to work out where your want to be in 1, 3 and 5 years time at a minimum and then work back from there. If you start with that and work back, then a lot of the pieces will fall into place. Your strategy should apply to all your business, and your web site or Internet bits will only be a part of it (a big part, perhaps...). For example, if you have a product with a big ticket price, and you only sell 5 a year, then you don't want to start planning in a shopping basket system and credit card payments! Selling on that scale will need lots of relationship building and face-to-face interaction, so you need to work out how your Internet/e-commerce strategy will enhance and benefit that. A good web site to that will impress people who pay £50,000 for your product? A newsletter system to help keep in touch during the long sales cycle? It's a completely different approach to selling £20 watches....

3. Concentrate on Existing Customers If your business is already up-and-running and you're simply adding an Internet presence or improving on it, then your existing customers should be treated like Gold. They can actually help you bring your business online. Test the waters with them, ask them what they think at each stage, build the system around them and their needs and you'll end up with a template that will help you expand online in the sure knowledge that it will attract and help keep new customers. And, of course, if you do it right, you can start making extra money online right away, without a single new customer, by using your web presence to save money and improve relationships with your existing customers so they buy more from you.

4. Make Service a Priority While the Internet can help you cut costs and make your business run more slickly, you've got to remember that it can also be very impersonal. One of the most valuable things I've ever learnt is that people buy from people they like. And they don't like to be let down. The media is littered with stories of people who managed to click and pay for something online only to wait weeks for it never to turn up. Emails don't get replied to, phones don't get answered (if the web site even publishes the number!), and they get constantly fobbed off. Yet the Internet is an ideal tool for delivering better customer communication! But many businesses use a flash web site to hide behind... That's another quirk of the Internet - it's possible to gain customers more quickly than traditional methods, but you can lose them like lightening if you provide a poor service. News travels fast on the internet - even faster if it's bad news...

5. Work out your Communication and and Customer Relationship Management (CRM) policies and procedures As I mentioned before, the Internet provides excellent tools and opportunities to build relationships with customers and clients. By this stage of your planning, you're chomping at the bit to "get something up and start selling" but winning a customer is a bit like wooing a woman (please forgive the sexist nature of this analogy!). You don't run up to a woman you like a scream in her face "I want to have babies with you, NOW!" So why do people do this online? You need to build into your plan ways and means of starting and growing relationships with your customers and clients. You need work out ways of opening a dialogue, finding out about them, and helping them find out about you. Did you know that research shows that people generally visit a web site seven times before they feel confortable enough to buy anything? So what are you going to do that makes your web site interesting enough for people to visit seven times just to look at it? And when they do, what then? Is it like a one night stand? Or do you send them emails asking if they are happy with the product/service? Can you send them a regular newsletter that they find interesting? And do you have a system in place to manage all of this - for example, can you track how many times a customer has been contacted, by what method, and what was said? You can and should build up a valuable database of detailed customer information, their buying habits, what they like/don't like and a system for contacting them on a regular basis.

6. Offline/ Online Marketing, Search Engines & Pay Per Click Ah, search engines. The magic bullet of marketing... or so the Search Engine promotions "experts" would have you think. The holy grail for many is "being number one on the search engines", and great though that is, your success or failure actually hangs on what happens when all that traffic gets to your web site - it's got nothing at all to do with being No1. In fact you can actually bankrupt your business by being No1. A sudden flood of traffic can burst your bandwidth budget, have you running to Dell or HP or whoever for more servers, bring your web site to it's knees, and, if all those visitors turn up and don't find what they're looking for, you make virtual enemies of thousands - even millions - of potential customers. Once again, before you even think about Search Engines, you must go back to your research and your strategy and start again from there. Ask yourself: What is my ideal customer? What search engines do they use? What key words do they use to find services/products like mine? What's my USP? What magazines do they read? Are there cheaper/better ways of reaching them than via search engines? There are, of course, certain low-cost/no-cost golden rules that everyone should follow. Your web address and email address should be printed on all your stationery. If you send out catalogues, promote your web site in it. Add a promotional message (including a link to your web site) at the bottom of all your emails (this is sometimes called a signature file or sig file). The key is to think about your promotion from your customer's perspective. If you do that, then, at least as far as Search Engines are concerned, you can focus on relevance. Make sure that people who find your site via search engines are actually looking for what you have to offer and are ready to buy. You are relevant to them and they are relevant to you. If my sales target in my strategy is to sell 100 units a week, then all I really need is 100 buying customers from Search Engines. If I use all the tricks in the book and haul a million visitors in who aren't even vaguely interested in my widgets, I'm wasting their time and my money. To sum up, you should: