|
|
|
Exploiting the Online Boom in Business-to-Business Sales
BNH interviews Alex Richardson,
President of Lexitech Inc., a Branford-based Internet presence provider
specializing in e-commerce, with offices
in San Francisco, Portland and Washington, D.C.
|
Business New Haven
9/7/1998
By: Clement L. Russo
|
Business-to-business sales on the Internet are expected to reach $300 billion within five years. Who's benefiting most from this online boom?
Technology companies are the primary beneficiaries right now. They're used to the infrastructure that's required to do business online, so they immediately see the bottom-line value of being wired. That's why Dell and Cisco are making millions online, because the technology-based customer is ready to go and ready to make purchases. Other companies making a lot of money are those that sell financial and insurance services or other kinds of data. Our clients at Travelers are doing quite well, selling both personal and commercial insurance online.
What efficiencies can companies achieve by conducting sales online?
We believe that every aspect of the sales process should be looked at in terms of what can be converted into an Internet-enabled service and what kinds of efficiencies can be gained by selling through the Internet. This includes everything from brochures to sales requests to order entries to finding out what the status of an order is.
Do security problems pose a barrier to increased Internet sales?
Security is not really an obstacle to growth in business-to-business sales, because the solutions to many of today's security problems are being found. What many of our clients worry about is the issue of pricing. For example, some companies have different prices for different customers. And they're afraid that if a business customer comes in and requests a price schedule, they may inadvertently see one that's intended for another type of customer and that offers more favorable terms.
What are the key factors
involved in conducting e-commerce successfully?
We've identified four keys to success in online business-to-business sales. The first is “attraction”: how you get customers to come to you. That involves more than just pretty pictures; it's the business value - 24-hour service, for example - that your customers or suppliers gain by using your online sales system. No. 2 is “interaction”: How easy is it for customers to navigate your system? No. 3 is “transaction”: Can your customers or suppliers make a transaction online? And No. 4 is “satisfaction”: After you've allowed entry to your customers, can you satisfy them by delivering the goods and services they want? That's where quite a few enterprises fail, because they lack an appropriate Internet strategy or can't really figure out what their online sales strategy is.
What adjustments must companies make in translating traditional sales practices into an online sales process?
We don't believe you should throw out your entire sales and marketing strategy and jump online. You can't put all your eggs into the Internet basket and be successful. Your online strategy should complement your overall business model, so that these new channels will enhance your competitive advantage. Neither do we believe that putting up an Internet sign means getting rid of your distributors and agents. It's not simply a matter of replacing the middle man. Part of your strategy should be to assess the value added by the Internet process, as well as the value added by your brokers. If they no longer add value, then you may want to eliminate them. But chances are that won't be true.
|
Go FirstGo PreviousGo
NextGo LastGo
to Index
|
|
