03.12.07

Growing Business in a Changing World

Chris Stening, managing director, UK Online

Our increasing reliance on the internet as consumers is rapidly changing the way people live and work. According to a recent survey by Point Topic, more than 86% of internet users questioned now spend six hours or more per week on the internet at home, while 70% shop online. The laptop is becoming the focus of attention in the lounge rather than the television and shopping is not something we just do at lunchtime or at the weekend.

This new internet centric home has been a boon for small businesses and sole traders, allowing them to trade and market themselves to potential customers far more easily than would have been possible in the 'old world', with a fraction of the associated overhead costs. Consumers now "Google" suppliers rather than pick up the Yellow Pages or Thomson directory.

While in some ways the internet has made life easier for small businesses, it has also placed information and almost unlimited choice in the hands of the consumer. This means that for today's businesses, speed of response and customer service are more important than they have ever been, yet many small businesses fail to recognise this. For example, in our recent survey we found that more than a third (37%) of small business owners that are online were using a basic internet package instead of a business grade service. Not only that, they were giving out personal email addresses on their business cards, company vehicles and promotional materials.

It is likely that this practice of using internet connections designed for consumers is meant as a cost cutting measure, but at what long term cost? In a world where deals can be won or lost based on the speed of response to an email enquiry, sacrificing service and reliability for the sake of a cost saving amounting to less than what most businesses spend on printed stationary seems somewhat short-sighted.

So what are successful businesses doing to differentiate themselves in this dynamic business climate? In my experience, the companies that succeed are those that recognise the value of customer service. Online or off, good customer service is essential, it's simply the methods of communication that have changed.

Equally, when it comes to attracting new customers, a good marketing strategy is still essential but the channels are more diverse. A professional looking website is a basic requirement as you need to be able to display your products and services in the right way and at the very least answer the simple consumer questions: who are you, what do you do for me and how can I get in touch? Once this is in place, you can begin employing Internet marketing techniques such as email marketing, affiliate marketing, in which a network of smaller websites is recruited to drive targeted traffic to your website, and link building, which increases the chances of a good ranking with search engines such as 'Google'.

As consumers enjoy increasing online freedom, the 'brave new world' of Internet business is quickly becoming commonplace. The term 'to Google' is now officially a verb in the Oxford English Dictionary, and if your business isn't online then it isn't on most people's radar. The survivors of the new economy will be those who understand that the same harsh business realities of the old economy still apply.

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