What's Up Doc?
 
Volume 2, Issue 5/Newsletter courtesy of Electronic Document Service, Inc. January 2001
 

The Challenge of Doing Business
In An Electronic World

By Jim Mullaney

hether or not you are growing in expertise for conducting business electronically, you will have to agree that the challenges we face in this area are growing exponentially each day. EDOCService hosted a business forum for its clients and their guests on November 7, 2000. The purpose of this business forum was to identify some of those areas that will help each of us get a better handle on thriving in an electronic business world. This panel included a hardware expert, Tom Ferris, owner of Ferris Electronics in Lebanon, Ohio; a web design expert, Lisa Platania, President of Source Net, Inc. in Mason, Ohio; and an e-commerce marketing expert, Jon Keel, President of Improved-Results in Cincinnati. Here is a summary of that forum:

KEEP IT RUNNING!

The best-planned system in the world does us no good if we can't keep the hardware operating. Our first presenter was Tom Ferris. For several weeks prior to the forum, Tom kept close track of client hardware systems problems and developed a "computer care checklist" for forum participants. Here are some of the tribulations Tom reviewed with the group and the solutions to avoid such problems:

• Heat. Most computers have at least one fan and many have three. System problems often occur due to a malfunction of a fan that results in overheating inside the computer. It does not hurt to check these fans occasionally. Symptoms of overheating include a system that works fine when it is first turned on but then it experiences problems throughout the day (such as locking up). This could simply be a malfunctioning fan, which is an easy problem to solve, as the fans are generally easy to replace. Be sure your system is set up with plenty of room around it so that it can breath. Systems set up in confined spaces can experience restricted airflow and result in overheating problems. Computers sitting on new carpet can pull carpet fibers into the system, clogging the ports and restricting airflow. This can also result in overheating.
• Static Electricity. This is a particular problem during the heating season. Control humidity and use anti-static measures.
• Viruses. This is an annoying and ever-increasing problem. Use a reliable anti-virus scanner and perform a live update weekly. Use caution using common e-mail programs that are easily exploited by virus authors.
• Bad Software. It is dangerous to assume that all software will work on your system and be compatible with other software you are running. Beware of games! Personally, I believe that games and business-use computers don't mix. My experience has been, generally speaking, the cheaper the game, the greater the danger of software conflicts. My advice is that if your computer is to be used primarily for business, stay away from games!
• Incompatible or Inferior Hardware. All hardware is not equal. Be certain you know what your system needs and what is being installed on the system. Like software, cheaper components are not always the best solution.
• Backup! Test Backup! Backup! Test Backup!

If you have a hardware question, you may contact Tom at (513) 934-2667. Or via e-mail at fercomp@go-concepts.com.

WEB PRESENCE = CREDIBILITY

Lisa Platania pointed out that websites are valuable tools today in establishing immediate credibility for your business. Carefully consider the fact that your website is an important representation of you and your business and therefore requires careful planning. Don't expect your web designer to conduct your strategic plan! That is your job! The web designer will take your strategic plan and design an appropriate site for you to achieve expected results. Here are the factors to take into consideration as you develop your website strategic plan:

• Is your name easy to remember? Does it describe what you do and attract the right audience?
• Will people be able to find your company on the Internet?
• What will make them want to go there?
• Who will be listed as the contact name for hosting and for changes to the site?

 
Let's discuss the importance of the contact person. You must take ownership of your website! It is a common practice for business owners to allow their web designer to exercise full control of the site because they do not understand the technical logistics. Doing this is comparable to giving your stockbroker a checkbook and signature stamp because you do not fully understand the technicalities of the stock market. The problem is, if the stockbroker drops out of site with your checkbook, you can't write any more checks. It is the same with web designers. Your web design representative should be listed as the technical person for your website but you must be registered as the contact person for the domain name registration process. If your web designer drops out of sight, another web designer will need to take over to keep your site up-to-date. If your former web designer is listed as the contact person, and can't be found, taking control of the existing web site will be very difficult.

Here are a few areas that you may want to include as information resources on your site:

• Sales
• Marketing
• Public Relations
• Human Resources
• Employment
• Client Projects (Secure location)

 
Remember the A, B, C's of website development: Ask the right questions. Bring together ideas. Create a site that will complement all areas of your business.

Lisa Platania can be reached by phone at (513) 573-6018, and by e-mail at lisap@sourcenetinc.com, or via the web at http://www.sourcenetinc.com if you have a specific question you would like to discuss with her.

MARKETING YOUR WEB SITE TO INCREASE REVENUES

Jon Keel pointed out that the online world is rapidly changing. "What I was teaching in my MBA Online Marketing and E-Commerce class at Xavier just a few months ago is no longer applicable; a lot of it is already obsolete." The business community is just beginning to wake up to the fact that performance and profits are okay when conducting business online. It is amazing how quickly standard business principles are forgotten when a company enters the online arena. Here are some general business principles that also apply to web sites:

• Performance must be measured.
• Identify (and therefore increase) revenue streams.
• Identify profitable traffic sources.
• Identify and measure cost factors.
• Measure and test; measure and test. It is a process, not an event!
• Identify proper forms of communications. Email communications is a powerful sales tool, providing "opt-in" email communication rules are followed.
• Study the metrics. Knowing the value of the people who visit opt-in, and purchase is the most important part of marketing online.
 
Here are a few relevant metrics in e-commerce sites:
 
• Conversion rate. The average percentage of people who buy from your web page, i.e. if 3 out of 100 visitors visit and take your most-wanted response, the sell-through rate is 3 percent.
• Value per Visitor. The amount of money an average visitor is worth i.e. if your sell-through rate is 3 percent and your product sells for $100, each visitor is worth $3 One hundred visitors equate to $300 in sales.
• Revenue per opt-in name. The total revenue you receive sending e-mail promotions to your opt-in list, divided by the number of names you have. For example, if you send 100 prospects an offer that generates $50 per sale and 3 percent buy, you earn $150 or $1.50 per name per offer.

 
Paying for performance is definitely "in" in maximizing e-business sales. Identifying these factors above not only helps you with online performance but also gives you a significant and unique competitive advantage.

You can reach Jon online at http://www.improved-results.com, or you may call him at (513) 321-3507