In 2014, $1.5 trillion worth of goods and services were bought through e-Commerce by shoppers via desktops, tablets and smartphones, according to eMarketer. In 2013, the growth of e-commerce has already significantly outpaced that of brick-and-mortar, globally. The performance is impressive, but not surprising, and we will continue to see worldwide e-commerce growing at an annual rate between 13 to 25%.
By the time you have finished reading this paragraph, 1.2 million USD dollars of online sales have been transacted. As disruptive as it sounds, government worldwide has started taking actions to encourage companies to go digital so as to tap the bandwagon. For example, a number of countries are providing corporate tax incentives for companies to develop web presence. As a result of both top-down driven and organic developments, many developed nations have progressed to a stage where e-commerce and m-commerce are becoming a norm for the local enterprises, but the returns of investment have yet to show promising results.
The motivation behind the incentives from top-level is to progress towards a smart nation- a term coined to associate a well-wired country, where intelligence enabled by digital technology facilitates the economy and social progress. In the context of commercial uses, many of us unfortunately are disillusioned by the prospects of “upgrading” from brick-and-mortar to having a web presence concurrently. Many not only failed to see an increase in revenue, but also faced declines in both productivity and profit due to the additional overhead to maintain the web presence and non-traditional customer interaction, if any.
Truth be told, statistics reflect the optimism of additional sales channels that e-commerce brought to businesses. However, few people dig deeper into the statistics to discover that most of the transactions are dominated by retail giants like Taobao from Alibaba Group, Amazon and eBay-the combined of the Big 3 took up 30% of the total online transactions. One may then pause to consider, “wouldn’t it then make more sense to tap on these platforms rather than creating my own online platform?”
Unfortunately, many small and medium-sized enterprises believe that branding and control are important reasons to do their own, but failed to realise their web presence may never be visited. To make matters worse, in developed countries like Singapore where regulations have stepped in to protect the privacy of consumers, traditional marketing techniques like mass-SMS and email marketing are restricted to those who opt-in only, thus significantly limiting the pool of targeted prospects. This means that the usual way of directing traffic to one’s online platform or website is no longer working.
Companies have to realise that having a digital presence is not a safe haven or a blue-ocean strategy. Rather, doing so invites an additional form of competition-a global one. Launching an online presence without understanding how internet users behave can be a stumbling block for many. Issues like website ranking, page loading speed, user-friendliness and delivery process are the minimum to take care of, let alone issues like online reputation management and cross-platform integration. Therefore, some chose to shy away from the Internet for simplicity.
On the other hand, being able to harness web technology can create new sales opportunity through direct sales, new customers acquisitions or even discover opportunities for new product or service-in demand through data analyses. Here are a few tips to both top-level stakeholders driving the smart nation roadmap, and enterprises to salvage what they have and those who are just starting:
1. Allow people search for your business online easily
Forget about the most beautiful design or digital technology if are not on page 1 of Google today. This is the very first thing you need to do, else your competitors are stealing all your leads. Think about this, if you are looking for the best food in town, how often do you search beyond the first 2 pages of Google? Unlikely.
Myth #1: I’m too late into the game and my site is not going to be in the top page.
Absolutely not. Search Engine Optimization or SEO, a kind of digital marketing solution, is the process of improving the visibility of a website or an online platform. SEO involves a series of best practices, good fundamentals to the website architect and fresh content creation. Many attempted creating contents but forget about the first 2 elements. Keeping in mind the guidelines and implementing small steps along the way are keys to success. Moreover, SEO can be used to target the right audience in the right market through relevant keywords. This has allowed the SEO-savvy businesses to expand into overseas markets without being physically present in the foreign country through leads from abroad. It can be time-consuming and requires expertise to execute well so be sure to hire a SEO consultant who performs white-hat strategies only. The original intent of creating a web presence is to expand your radar, and it does not fulfil the purpose if those who visit your website are already your existing customers.
2. Cross device compatibility and marketing
A well-designed website on desktop may not be compatible with mobile phones or tablets. Compatibility refers to layout, font size and user interaction. A quick diagnosis is if a mobile user has to zoom in to see the contents or links are too close to one another, most likely the website is not mobile-friendly. Note: On April 21 in 2015, Google is releasing a new ranking algorithm to give priority to mobile-friendly sites. This means that if yours is not mobile-friendly, be prepared to face a drop in rank.
Myth #2: I have a mobile app and website that can accept payments from my clients. I have therefore used omni-channel strategies.
Omni-channel is multi-channel retailing concept that has been misused frequently. One underlying assumption that is often overlooked is that the different sales channels should offer a unified and consistent customer experience. This includes both user experience and marketing, and any one channel that “screws up” can immediately hurt the image of the company’s brand.
Perhaps what people are really missing out is the exceptional importance of identifying the various segments of your customers by the type of channel they used. This means that a significant proportion of your customers might prefer to use mobile to make transactions. The user patterns can also make a difference. The same individual could be using mobile in the day and back to desktop in the night time. Such segment identification can really provide insights to your marketing strategy as you might want to customise advertisements or incentives, or even by the time of day for different channels.
Doing so therefore, can potentially maximise your revenue generation on a daily basis, and also justify the ROI of your marketing expenses, leading to unexpected surge in your bottom line for the whole year. Even though there are quite a number of tools available in the market, the take-up rate is low due to the lack of awareness. If time does not permit, always hire a professional digital marketing consultant who understands your business.
3. Social creation
Customer-centric business model seems like an obsolete concept when we are already seeing active movements in social co-creation where customers help companies to define its new products and services. Millenials are digital natives born in the age of Internet and they can see more part of the “world” than us (through the Internet of course). This means that their expectations would be more demanding and varied, and at the same time see what our competitors are doing and perhaps demand the same or more from our service offerings. It would be a smart move to rope them into the creation process to enjoy this free power of creativity. One good example is Threadless, where designs of T-shirts are created and chosen by the online community. Another is the FreeStyle machine, a new generation of dispenser that allows people to mix and match flavours to create more than 100 types of drinks for the brandowner to discover opportunities for new product launches that can appeal to the mass market.
Myth #3: My business is not in the retail or food & beverage line. Social creation doesn’t apply to me.
Absolutely not. Look at Microsoft that uses co-creation to create new generation of ad formats, FedEx crowd-sourced ideas to deliver live tissues for organ donations across borders, and many more examples. Co-creation at its lowest level can be in the form of crowd-sourcing ideas from your employees to solve internal problems or even discover new opportunities through their interaction with customers. At a higher level, crowdsourcing can solicit ideas to enhance service experience, inspire new product or service development. The key is to interact with the online community to enhance their opinions, insights and wants.
The principle of reciprocity is still applicable as it is before the Internet era. While you gain information in the cyber space, also contribute to the online community. Post interesting contents or articles online so that people can see you. One simple tip is to add graphics to your post as such insertions have been proven to receive 55% more views than those without. Do not forget to embed social media sharing buttons to allow your readers to re-post to the wider community. They are not only endorsing you, but also serve as a free marketing tool. Having said, if lack of time is an excuse for you, you can still leverage on contents created by others. We call this process “content curation”. Choose contents that are both interesting and relevant to your business, and add value to them by sharing your insights or opinions before re-posting them to your social media channels.