Information Sheets > E-Biz Questions

When will the number of consumers using the Internet have reached a critical mass?

We are very nearly there. 17.9m people already enjoy net access. The proliferation of e-commerce sites on the net also suggests that a critical mass is beginning to form. This year will see access to the Internet in the home become the norm rather than the exception and be a "festival" of e-commerce which will force traditional retailers to really sit up and take notice.

 

What is the best source of accurate statistics about Internet usage and e-commerce?

NOP surveys for general information, Fletcher Research for in-depth guidance and New Media Age for its aggregated information from a broad range of sources.

 

What is the best way of telling a good web site design agency from a bad one?

Check how much experience the agency has. It is a good idea to ask the agency to quote the URL of sites that they have already designed. Look at these sites online and perhaps talk to the companies concerned to see how effective the designs have been for them. A good agency will listen to you, understand your requirement and involve you in the design process to ensure the end result precisely meets your need.

 

Is it better to be part of a "shopping mall" with other retailers from complementary retail areas?

This all depends who you are. At this relatively early stage in e-commerce development, the big issues to be overcome with consumers are trust and security; so brand name is more important than anything else. Therefore if you are a brand name now you can probably go it alone, but if not you will probably be better off in a trusted "shopping mall". As a brand name of course, you could do both.

 

Should e-commerce be part of our marketing department or a stand-alone business unit?

E-commerce is transforming the way organisations do business and so must be fully integrated throughout the company. The marketing function is responsible for meeting customer needs, it must work with other business functions to ensure those needs are met. The web is currently affecting core areas such as customer service and the sales process. Businesses need to plan the integration of e-commerce within their business processes but it is up to the marketing department to champion the benefits of e-commerce for customers.

 

How secure are Internet transactional facilities?

At present, the majority of Internet payments are made using the Secure Sockets Layer (SSL) technology built into most browsers. This encrypts credit card details in transit, but does not guarantee the buyer or seller's identity. Banks are currently trialling the next generation technology, SET (Secure Electronic Transaction), which provides virtually unbreakable encryption, authentication of the trading parties and guaranteed confidentiality. In time, SET is likely to become the global standard for Internet commerce.

 

Is e-commerce a threat to our direct mail business?

E-commerce is becoming a key communication and transactional channel in the marketing mix. Yet direct mail keeps growing, a tried and tested, cost effective means of building relationships. In many respects, e-commerce is a driver of direct mail. In the final analysis, direct mail can enhance e-commerce and vice versa. New media are leading us away from broadcast and towards relationship marketing - a future in which direct mail has a major part to play.

 

How do we go about attracting users and customers to our web site?

Go back to basics. Who are your customers, do you want them all coming on-line, how do they normally use the Internet? Provide a tangible reason to visit and to return. Expeditious replies to enquiries are essential. Determine the initial reason to visit and include it in the marketing mix. Most of your new on-line market will be won via on-line promotion, which should be clearly structured and consistently executed. Above all, ask customers what they want from the site.