Progressive Distributor - Marketing on the Internet

Marketing on the Internet

The Internet provides a new marketing tool to build relationships. But first, it must fit a company’s overall marketing strategy.

by Gail Zank

Customers are now in charge. Explosive growth of the Web makes it easier than ever to comparison shop. Customers can switch suppliers with a click of the mouse. Now more than ever, companies need to think about keeping their most profitable customers loyal. The question is, how can technology help companies meet this increasingly challenging objective?

Web technology offers many opportunities for companies to engage in interactive marketing. It enables them to customize services and be more responsive to individual customers. In fact, the Internet has been characterized as the ultimate interactive medium.

Given the value of this medium, it is not surprising that the Web is becoming the vehicle of choice for B2B marketers. Marketers use it for communication, customer service and e-commerce, with varying degrees of success.

Business rules still apply
Before you jump into the Internet movement, start with a business strategy that describes how your company plans to use Internet technology. For example, your company may decide to use the Internet to help enter new markets, protect existing markets or enter new channels. Part of your strategy should include assessing short-term, mid-term and long-term plans for using the Internet.

It is not unusual for companies who view the Web as a marketing tool to go through several stages. For instance, most companies begin using the Web to provide company and product information. The next phase often includes adding customer service functions, such as allowing customers to track orders. Later, they may add e-commerce functionality, allowing customers to place and pay for orders online. Eventually, some companies might find that an effective Web site builds a sense of affiliation and community among customers.

Cisco Systems has reached this level of integration with its Web site. Customers respond to questions posted online by other customers, which helps them solve technical problems. This builds a sense of community and partnership between the customers and Cisco Systems, and helps maintain positive customer relationships.

Often, when people think of the Internet, they think it is complicated. But with all of its components, networks and interconnecting magic, it is still about marketing and knowing your customers. You should remember that what was important before the Internet is still important today. It is still crucial to listen to customers and know what they think and need. Companies must ask how they can effectively use the Internet to gain more information from customers and then respond to those needs.

Some companies use the Internet to send surveys and increase their customer knowledge base. Sometimes, going online and visiting chat rooms provides insights to how customers perceive a company or brand. In addition, effective Web sites allow an opportunity for customers to ask questions and voice complaints.
It is even more important that marketers look for ways to enhance relationships with customers because the Internet has made it easier for customers to find alternate suppliers.

Customer responsiveness and customer service remain important on the Web, perhaps even more so, since the Internet magnifies mistakes. The Internet provides 24/7 customer access, which spells opportunity for marketers if they can meet the customer's needs. If they can't, the customer can easily click the mouse and search for another supplier.

Also, if customers perceive price parity, they are likely to prefer a
site that delivers on the customer service promise. Understanding that customer service is critical to customer satisfaction is just as important today as it was before the Internet age.

Distributors should also think about how to use customer service to differentiate themselves from competitors. Responding to customer questions posed online provides marketers with real-time marketing research. Responsive marketers can utilize this information to offer Web sites that provide the desired information and to develop service levels that best meet the needs of customers.

Develop an online brand
Web sites allow marketers the opportunity to build a brand online. Building an online brand doesn't mean inventing a new brand. Rather, companies should use the Web to reinforce their existing brand (assuming the company has an existing branding strategy). Your company should be able to answer the following questions: Who are we? How do we want to be viewed by customers? How do we want to be viewed by channel partners? How do we want to be viewed compared to competitors? Web sites provide marketers with another tool to reinforce their image and identity.

Although company Web sites are common today, their rate of success varies. Successful Web sites tend to be part of an integrated marketing communication program.

Successful companies use traditional media and marketing tactics such as direct mail, print advertising and trade shows to drive more prospects to their Web sites. Some companies pass out CD-ROMs shaped liked business cards to demonstrate the company's Internet capabilities and hyperlink the customer to the
company's Web site.

You can't assume that if you build a Web site, people will come to it. You must promote the site. Current customers need to know your Web address or URL. Prospective customers must be able to easily find the Web site if using search engines.

Use traditional media to drive traffic to the Web site. Publish your Web site address or URL on all company literature, including invoices and stationery. Paint it on company vehicles. In addition, salespeople and other employees can push customers to the Web site. It is important that your employees understand the capabilities and value your Web site offers customers, so they can share that information with customers and encourage its use.

Cover all your bases
There are many things distributors need to consider when developing an effective Web site. Here are just a few suggestions:
First, identify the purpose of your Web site. Is it to provide information, share customer data or allow e-commerce transactions? When developing a Web site, consider your customers' needsand expectations.

Involve all departments in your company. You don't want to make promises that your company cannot support. By including other departments when developing your Web site, you'll be sure to include customer service offerings and benefits that are important and that your company can satisfactorily deliver.

In addition, people in different departments have different perspectives on what customers need and how to best service those needs. Similarly, these departments can offer suggestions about how a Web site might save them time and money in their daily operations. A Web site can increase revenue opportunities and help minimize transaction costs.

Some trends in Web sites include the use of upselling, suggesting other products to buy based on what a customer ordered. Amazon.com is particularly effective at this. How might your company incorporate similar functionality? Here's one example: When a customer orders coated abrasives, the site might ask if the customer needs backup pads.

Many companies are working toward offering personalized, customized pages. Companies hope these efforts will help build relationships with customers online and keep customers engaged.

The Internet provides a new marketing tool to build relationships, but it must fit within an overall marketing strategy. At the end of the day, your goal remains the same as before. You want to increase revenue from profitable, loyal customers.

Gail Zank is an assistant professor at the Texas A&M University School of Industrial Distribution. She can be reached at zank@entc.tamu.edu.