| Continuing towards replacing those "information only" | | | | shorten the "lead to close" timeframe. |
| Websites with profitable business applications, we | | | | 6. Reduce time (and success) to market |
| look at the final 3 ways to reduce company costs. | | | | Time to market is loosely defined as the length of |
| Last article we looked at reducing customer and lead | | | | time required to move a product or service from |
| acquisition costs, Web site maintenance costs, and | | | | concept to marketplace. During the concept stage, |
| prospecting costs. This time we'll address a few | | | | it's important to determine whether or not the |
| more cost-reducing objectives. | | | | offering is viable. |
| As mentioned before, let's work towards replacing | | | | If you learn nobody will buy your new mousetrap, |
| those "information only" Web sites with profitable | | | | cut your losses, swallow your pride, and move on. |
| business applications. And don't forget to send me a | | | | Sure, pulling the plug on a "great idea" is easier said |
| photo of your new life-size bronze statue. | | | | than done, but you can always try again next year. |
| Back to the grind... | | | | If you learn prospects want your McSuper |
| 4. Reduce call center volume | | | | mousetrap with cheese, find out why. Qualitative |
| "Does it include a warrantee?" "What's your return | | | | research is key. |
| policy?" "Is your software compatible with my | | | | Your Web site should help collect the answers you |
| operating system?" "Do I get fries with that?" | | | | need, fine-tune your marketing message, start a |
| Companies waste thousands of dollars each week | | | | dialog with customers, and prime the group for |
| addressing common questions over the phone that | | | | launch. |
| can be answered online. One of the easiest ways to | | | | 7. Reduce obsolete and excess inventory |
| reduce this cost with your Web site is to resolve | | | | Selling multiple products online can be quite costly, |
| these concerns as they originate. When done | | | | especially when your fulfillment center and |
| correctly, it also helps influence your prospect's | | | | warehousing costs eat away at profit margin. Use |
| decision to buy. | | | | your Web site to bring down high inventory levels. |
| By no means do I recommend you abandon phone | | | | Look to traditional retail store management and |
| support or customer service. I merely suggest you | | | | merchandising strategies for guidance. For decades, |
| take a proactive approach and address common | | | | storeowners have perfected clearance sales, end of |
| concerns with your Web site to free up the phone | | | | season promotions, two-for-one bargains, and free |
| lines for more critical questions. | | | | add-ons to quickly lower unwanted inventory levels. |
| 5. Reduce sales cycle time | | | | If you're not willing to reduce price or slim profit |
| The uniqueness, complexity, and investment size (or | | | | margin, use your Web site to exploit these items. |
| cost) typically dictates the amount of education time | | | | Place advertisements on your own high traffic pages |
| needed to close a sale. Consequently, as these | | | | and manipulate your on-site search utility. Ever |
| variables go up, so does your sales cycle time. | | | | wonder why retail outlets place merchandise upfront |
| Most service industry cycles conclude with human | | | | or way in the back? You can implement these same |
| interaction, but that doesn't mean a Web site can't | | | | strategies online. Be creative and study the past to |
| make the sale easier or expedite the process. Your | | | | better understand the present. |
| Web site should help educate prospects, overcome | | | | Best of all, your Web site is measurable. You will |
| their objections, influence their buying decision, | | | | quickly learn the strategies and tactics that work |
| persuade them through purchase, and ultimately | | | | best by measuring effectiveness at the micro-level. |