Tuesday, 17 April 2012

Still Don't Need a Website, 46% of Your Customers are Going Elsewhere

We are in 2012 and I can not believe that there are still businesses who feel that a website is not beneficial for them. I still maintain that if you are serious about expanding and delivering quality service to your clients, a website is at the top of your checklist. And if you don't have a website, somebody in your industry is raking in customers and cashing in on the sales that they are making. So, since people respond better to stats, I did a study on how well a business that has an optimized website, compared to a business who do not have a website.

My study was based on small businesses whose annual income is between ZAR500 000.00 to ZAR 5 million. I could not believe that a business with a turnover of ZAR 5 million per annum, did not have websites, nevertheless, I am trying to demonstrate that there are companies that do not value websites as part of the brand and as part of the growth strategy. I conducted this research with 25 companies, and the 11 of them did not have any web presence and 14 of them had websites, and only 5 of those that have website optimized them and acknowledged the value of SEO.

For companies that had websites, they acknowledged that having a website made them look credible and professional to their customers. All 100% (14) said that the website was a valuable part of their business. It provided a check mark to their customers that they are able to deal with the work that they are proposing to do. In essence 44% of the total companies, said that in their line of work, a website is necessary, but not essential to run their business. So, I asked them to give me their sales records, to prove my point further. The 44% that did not have website were doing their sales manually, either through a referral, or through a relationship they had with customers or through a sales team, and the 56% that did have websites, the lowest performer made 31% more sales than the top performer of those who did not have websites. Some of them did not know how the sales came about, so they put it as call ins, but we all know that these customers might have came through their site for details. The 20% (5) who optimized their sites, and included services like landing pages and had their site optimized, out performed the rest by an additional 15%, meaning that those who did not have websites are doing 46% less sales than those who have websites and optimized them. In this exercise, it proved that a website is a strategic partner for business growth.

The 44% that did not have website, did other forms of marketing like flyers, and invested heavily on sales staff to ensure that they remain abreast in making the company sustainable. In doing so, their expenditure was 73% more than those who had website and those who optimized their websites were getting better conversion rates. The brand of those who optimized their website was exposed more, and they kept on updating their website for web crawlers to rate them high on search engines. The businesses with optimized sites said they had to explain themselves less, because when they send a proposal to their clients, it included their web address and by the time they are called for a presentation, the client has an idea of who they are and what they are products and services are. And because these companies had an image to uphold (due to the brand promise, they promised on the website), they felt obliged to perform accordingly, as they were not representing a person's interest, but an organization's interest.

Because those who had functional website got more clients, it meant that their conversion rate was higher than those who did not have website. it was easier for them to convert potentials to customers. Clients educated themselves online without a sales person feeding them information leading towards a sale. So when the customer eventually bought, they were already convinced that they were doing the right thing and they chose the right product. The 56% that had websites also added that when they had someone who has been to their website, they are more articulate in the services they want, they are a pleasure to deal with, and they are far easier to close a sale than those who  have not had time to educate themselves with the product or services.

The next time you look at a website that you love and has called you to action, either to buy or like the product and services they offer, remember that it was a collaborated effort and it was deliberate. You don't like them by mistake and the service you have experienced was intentional.

No comments:

Post a Comment