2. Establishing Goals and objectivesBack to Top

Understanding your Business Niche

Develop a concise description of your target audience for your Web presence.

As with any marketing campaign, focusing your efforts on a target market will increase your success rate. Take time to put on paper a one–sentence description of your current target customer. For example:

35–year old former career women that stay at home with their children and desire reasonably–paid, fashionable, comfortable clothing for every day wear.

Now take this description and revise it for a targeted Web customer:

35–year old women that stay at home with their children, participate in online forums dedicated to motherhood, and desire reasonably–paid, fashionable, comfortable clothing for every day wear.

This written statement is now the guide to which you can return as you design your site, select merchandise to offer online, and choose marketing tools which will drive your online business.

Suggested general marketing reading:

• Focus, Reis & Reis.
• Guerrilla Marketing, Levinson.
• 22 Immutable Laws of Marketing, Reis & Trout.
• The Discipline of Market Leaders, Treacy & Wiersema.

Setting Measurable Goals and objectives

As with any new venture, it’s important to establish goals and objectives against which to measure success. Goals and objectives should be stated in specific metrics as opposed to general terms. For example:

Measurable goal for an existing business using the Web as new medium: "To bring up site within given timeframe and budget, achieve incremental revenue of 10-15% in first year (one-half from existing clients), and average 25,000 hits/month."

Measurable goal for an existing business, already on the Web, adding electronic commerce: "To add electronic commerce within given timeframe and budget, and achieve incremental revenue of 20-25% in the first year."

Measurable goal for a potential new Web–based business: "To bring up site within given timeframe and budget, achieve break-even status in the first year, and average 25,000 hits/month."

3. Researching and PlanningBack to Top

General Research and Planning

Everywhere you look, there are studies calculating, estimating and predicting the market for online commerce.

US online population was estimated to increase nearly 50%, from 142 million in 2001 to 211 million by 2006 (CAGR of 8.2%).

U.S. online retail sales was estimated to grow from $40.4 billion in 2002 to $112.5 billion by 2006.

There are 2.3 million small companies in the U.S.; with 16% of these in the retail trade and 60% of all small companies have an online presence - potential market size for our service is upwards of 200,000 companies.

Online shopping population was estimated to grow from 66 million in 2001 to 132 million by 2006.

Annual spending per buyer was estimated to increase from $457 in 2001 to $784 by 2006.

Source: Jupiter Internet Population Model, 10/01
(www.jmm.com/xp/jmm/press/industryProjections.xml) (US only)

Though the figures vary widely, suffice to say, business is booming on the Web.The first step to researching the possibilities that exist for your business on the Web is to begin with an open mind. The Web is a channel with so many tools that it can be overwhelming to newcomers. Therefore, the next logical step is to brainstorm your ideas with business associates who are doing business on the Web, as well as those who are not. Trade associations can be an excellent resource for matching you up with colleagues in both categories.

Familiarity with the Web

If you are already familiar with the Web, you will be able to explore other merchants’ Web sites for ideas. A few hours spent "surfing" and developing a sense for your personal preferences is a worthwhile investment.

On the other hand, don’t let your unfamiliarity with the Web intimidate you. The World Wide Web is a network of information stored in electronic format. Currently, the most common way of accessing this information is with a computer, modem, phone line, Internet connection service, and software called a browser. Once all the hardware and software is properly installed, Web access occurs when a computer is given the commands to dial the Internet connection service. Typically, a user enters a password, which permits the service to connect the user’s computer to the World Wide Web via a phone call.

The information on the Internet is stored in larger computers, called servers, all over world. Just like the computer user connects to the Web via a phone line, these servers are also connected through phone lines.

Using software called a browser, computer users type in a Web "address" which directs the computer to look in a specific location on a specific server to find the information requested. Because this process uses phone lines, connecting to information on the Web is similar to dialing a phone number and being connected to a specific person, in a specific company located anywhere in the world. Few people could explain the technology behind making a phone call, but it takes only a simple tool to make it happen.

On the Web, the resource used to find information is called a search engine. A search engine allows you find any information on the Web by typing in a few key words. A search engine can prioritize the information it retrieves. It also gives a map, typically an underlined word called a hyperlink, which directs you to the information by clicking on it with your mouse. Some popular search engines for finding information on the Web include Google (www.google.com), Yahoo! (www.yahoo.com), Lycos (www.lycos.com), Go.com (www.go.com), and Excite (www.excite.com).

Once you have become familiar with the Web, you will want to research the current state of the Web as it relates to your specific business niche (e.g., gourmet foods). Some of the most popular items already being purchased by on-line shoppers are books, music CDs and tapes, clothing, consumer electronics and PC hardware and software. Specialty or customized items, information-intensive products, and staples such as office supplies or women’s hosiery are particularly well suited for Web sales.

Many of the search engines have special sections that work like telephone directories to help you locate a company’s Web address. Using one of these areas, visit the Web sites of your competitors, vendors, and customers.

Analyzing Competitors via the Web

The Web is useful for researching competitors’ activities. The information available at your competitors’ Web site can be very helpful.

Once you have investigated your competitors, use the main section of the search engine to look for other references to your competition.

Next, determine if you can establish a link from the same sites that link to your competitors. Some sites may have free listings where you only need to submit a form to establish a link.

Lastly, visit other sites that report on companies and trends in your industry. Many publications now have Web sites, as do industry analysts. Archived articles or executive summaries of studies are often available free of charge on these sites.

Developing Your On–line Advertising Plan

"Unfortunately, many people think they can open a Web site then go lie on the beach while their accountant deposits checks in their bank account. Putting a Web site on-line without properly promoting it is like building an elaborate billboard and putting it in your basement."

—John Audette, President MMG, as quoted in Business Week, December, 1996.

As with any retail store, having an advertising plan is critical to your business’ success. At first glance, advertising opportunities on the Web appear limited to banner ads. Often, the cost per thousand, or CPM, to find qualified buyers is high. Therefore, even on the Web it is important to advertise in places that are highly targeted.

On the Web, finding a highly affordable, targeted audience may mean going to a discussion group and sponsoring its e-mail newsletter. On-line malls are a way to leverage off of traffic to other merchants’ sites. Unlike bricks–and–mortar malls, the most successful on-line malls have stores that develop a sense of community through offering related products to shoppers.

Web Outreach

Many business associations and clubs have Web sites containing additional information that may be helpful for your research. The Web also hosts many user groups and online forums for people with similar interests. Online services like America Online and CompuServe sometimes host and/or moderate these online discussion groups.

Listservs are another resource available on the Web. Listservs are automated e-mail forums dedicated to a particular topic. Participants pose and respond to questions related to the listserv’s topic. Listservs are often delivered to your e-mail address once a day in a digest format. Listservs are a way of networking via the Web.

Find Applicable Newsgroups

Newsgroups are like online bulletin boards where people post messages on particular topics. Newsgroups are fading somewhat in popularity, but merchants should investigate newsgroups and participate where possible. "Netiquette" is important in newsgroups, so be sure to read each group’s Frequently Asked Questions (FAQ) section before posting a message.

Creating a Budget

An important part of planning your virtual store is creating its budget. You will want to know up front what the potential costs are involved so that your idea will be firmly grounded in financial reality.

A major part of budgeting for your site will be to determine which tasks in the development of the store you will outsource. While outsourcing may cost more than doing things your self, the expertise, professionalism and speed of implementation you gain may be well worth it.

Financial

As you research and plan your virtual store, you will want to pay careful attention to financial planning. How much will it cost to put up your store? What fees will be recurring? Are you prepared to handle high (or low) volumes of traffic? Will your pricing structure net you a profit?

Because your Web store is a new venture, you should be prepared to wait several weeks or even months for Web surfers to discover you and begin purchasing your items.

Marketing and Sales

A number of organizations have sprung up on the Web to assist companies in their Web marketing and sales efforts. This is an area where spending some money for outside assistance can bring you very valuable knowledge. There are also some sites that will submit your site as a service. Some suggested resources include:

WebPromote (www.Webpromote.com)

Wilson Internet Services (www.wilsonWeb.com)

Technical

Take time to research what is technically possible on the Web today. Even if you do not fully understand the technology, this will help you understand what you can and cannot expect technology to do on your Web site.

As you visit different Web sites, save the Web address (a.k.a., URL or Uniform Resource Locator) of any page that particularly interests you. This data will help you later is defining how you want your own site to look. For example, you may find a music store that incorporates audio clips or a toy store that uses animated graphic files. Sites like these will become your idea bank of technical possibilities.

4. Implementing Your SiteBack to Top

Selecting an Internet Service Provider

An Internet Service Provider (ISP) is the company that stores that electronic information that is your Web site. ISPs generally charge a monthly fee to "host" your Web site. In addition, Data Pro has several reputable ISP's that run Data Pro's DP/STORE, which allows you to create and run your own virtual store for a monthly fee.

In addition to providing the DP/STORE software, either your ISP or Data Pro will be able to support that software. Support is critical not only to getting your store up and running, but also to helping you through any difficult periods. Remember, you do not want your virtual store to be closed for even a few hours because of technical difficulties.

Selecting and Registering Your Domain Name

Your domain name, or Web address, can also play an important role in driving traffic to your site and helping customers remember where to find your store. Your domain name should be easy to remember and to correlate with the products or services you are selling. The domain name you choose may be what initially piques a consumer’s interest in your site. Before proceeding, be sure to check that the domain name on which you decide is not currently in use. The quickest way to do this is to visit www.register.com.

Once you have chosen your domain name, you will need to register the name with InterNIC. InterNIC is the organization that manages and allocates domain names. Information on your ISP is required for your domain name registration process. A good ISP will be able to handle all aspects of the registration process for you. The typical fee for registering a new domain is around $100 or less for the first two years, then around $50 per year, thereafter.

Preparing to Take Orders On-line

Establishing your Merchant I.D. account with a bank or credit card processor

Any merchant wanting to take credit card orders should establish a Merchant I.D. Existing businesses may already have this established. Card Services International, First Data Bankcorp, First USA/PaymenTech, or your bank can assist you with this process.

Online Credit Card Processors

Payment System Selection, Installation and Training

Internet-based payment systems can be extremely technical and complex. Selecting the correct payment system requires an assessment of your current system (if any) along with some information about your specific business requirements. If possible, it is recommended that you integrate your Web site payment processing with an existing system, using an existing Merchant I.D. as assigned by a payment processor (e.g., Card Services International). Other considerations in selecting payment systems include fees, projected number of online transactions, method by which customers will purchase (e.g., purchase order vs. Credit Card), etc.

Once you have selected a payment system, the primary implementation is generally handled by your ISP. Then, you may need to make some small modifications to the implementation, such as configuring the system to use your Merchant ID. Before your site "goes live," you will want to test all aspects of it by using a dummy credit card number.

If you have not worked with your payment system before, be sure to run a number of demo orders to practice your order processing skills. You will want to be familiar with the system’s basic operations, including credit card authorizations, captures, returns and voids.

Registering Your Site with a Secure Socket Layer (SSL) Provider

Both VeriSign and Network Solutions provide digital authentication services and products that give consumers, merchants and corporations with extra confidence and security in electronic commerce transactions.

They manage digital IDs (also known as digital certificates) that bind a person’s or company’s identity to a digital "key." A digital ID verifies to the shopper that the virtual store is actually associated with a physical address and phone number. A digital certificate can increase a shopper’s trust in the authenticity of their electronic commerce transactions.

Registering with VeriSign or Network Solutions is not necessary to conduct electronic commerce, but will provide an extra degree of security for your customers. Data Pro's DP/STORE product accomodates Secure Socket Layer (SSL) technology.

Site Design

Developing a Theme for Your Web Site

Like any good sales and marketing program, your Web site should have a consistent theme and marketing messages about your company, products and services. These messages should be based on the target market segment that you identified earlier. There also may be aspects of your business that you wish to accentuate, such as professionalism, casual, underground, ethnic, etc.

The theme for your site may also revolve around the use of special characters or graphics.

Conceptualizing Your Site Design Through Storyboards

This is an important aspect of your Web presence. During this phase, the general layout and look of the site is defined. Web site consultants often start by building a site map or tree, defining where content will reside on the server, what the actual site pages will look like, and how the data will be accessed by shoppers. Storyboarding and prototypes are often used to assist with conceptual site design. The merchant should refer to any specific URL’s that were of interest during the research phase. The conceptual site design should be documented in as much detail as possible.

Developing Ad Copy for Your Web Site and Merchandise

This may be a simple task if there is an existing catalog which can be converted to hypertext markup language (HTML, the language used on the Web). Offline ad copy may be updated for use on the Web, and it may be possible to provide more detailed information on each product/service being offered. If there is no existing ad copy, the merchant will need to create a description of each product and other text designed to welcome the shopper and lead them through the shopping experience.

Site Page Development (HTML)

Page Design

Page design involves the actual creation of Web site pages. This is often done using software called HTML editors. Some HTML editors include products such as Microsoft FrontPage^TM, Adobe PageMill^TM and InContext Spider^TM.

Web pages can also be created using Data Pro's DP/STORE. DP/STORE provides the ability to change menus, colors, fonts and graphics on the fly through an Administrator Login process.

Graphics Creation

Corporate logos, product pictures, employee photos, and other icons are used to customize each Web site based on the overall theme and site design. The creation of these graphics can be done in-house or by a third party, generally using a digital camera, photos and a scanner, and/or graphics creation tools such as Adobe Photoshop.

The size of graphics files and the number of graphics per page effect the amount of time it takes for a page to load (appear) on a shopper’s computer. Merchants should design their site accordingly. If the target market is likely to be accessing your site via an average to slow modem dial-up connection, the download time should be minimized where possible. Several basic strategies that will make your site easier and quicker for all types of Web shoppers to access and use:

Recommended maximum page size is 50 Kbytes. The smaller the page size, the more quickly it appears on a Web shopper’s screen.

Reuse some graphics from page to page. Reused graphics are cached by browsers and therefore do not have to be reloaded every time a shopper goes to a new page. This, too, decreases the time a shopper spends waiting for your page to appear.

Consider text-only and/or "fast connection" versions of your site. These extra efforts will make your site more accessible to a larger audience. This extra touch of customer service may endear a shopper to your site.

Database integration (product files)

This is an optional step for merchants who are integrating their Web site to a relation database that exists in Microsoft Access, Oracle, Sybase, for example. Hosting your relational database requires additional technical resources and services from your ISP. However, if you utilize Data Pro's DP/STORE product, the data held in your accounting system is automatically accessed, real time.

Additional Technology Tools

Consider linking your virtual store into your accounting and inventory systems. If your systems are integrated, online orders go directly into your system without having to be re-keyed, making handling online orders much more efficient and reducing the potential for error. That is the key to Data Pro's Infinity Commerce integration with its Infinity POWER Advanced Accounting Applications.

You may want to establish e-mail aliases, a sort of anonymous place for customers to correspond about orders, information or questions. A typical e-mail alias might be info@yourWebaddress.com.

Autoresponders are a tool that automatically responds via e-mail to incoming requests. Autoresponders be set to send a standard confirmation message back when a customer inquires or takes an action such as signing up on a list. You can purchase software to create an autoresponder or your ISP may have some available to you.

You will also want to have a standard electronic signature that is included on any of your e-mail correspondence. This is called a signature (or sig) file, and typically contains your company name, address, phone number, Web address, and perhaps a company slogan.

Testing Order Flow in Your Site

After your initial development is complete, but before you launch your site, all project participants should thoroughly test the site. This will ensure that the site functions properly and adheres to your conceptual design goals.

Site acceptance

After you are satisfied with the initial site design, you will approve your Web site with your designer/consultant and prepare to take your site live for the first time.

Publishing Your Site

At this point, you and your Web designer/consultant should be ready to publish your site to the World Wide Web. This is done by linking your fully–tested site to its actual Web address.

Driving Traffic to Your Site

Add Your Address to Printed Materials

If you have an existing business, you should immediately begin to incorporate your URL (Web address) into all your sales and marketing materials and activities. Add your Web address to your stationery, business cards, brochures, flyers and anything else you print for your business. This will let your existing client base know that your products or services are available via the Web. Some shoppers may find this to be a more convenient way to shop at your store. In fact, you may be surprised to see order frequency and order size increase when your existing customer base shops online.

Keyword Selection and Site Description

Keywords are used by external search engines to index Web sites based on their content. This is an important way for shoppers to find your Web site. Keywords should be embedded (hidden) in the HTML pages of your site. Keywords also used when registering your site with external search engines. Merchants should select ten to 20 keywords that best describe their business, customers, and products/services.

Within your site it is recommended that each keyword be listed five times in a hidden field on the index page of the site. (Hide keywords by using the same color text as the background.) Robots.txt files may also be used. A robot is a program that automatically traverses the Web retrieving all documents that are referenced. Web robots are sometimes referred to as Web Wanderers, Web Crawlers, or Spiders. For more information on robots, visit http://info.Webcrawler.com/mak/projects/robots/robots.html.

Keywords are also used when registering the site with an external search engine. In addition, the merchant should compose a 50–word description of the site to use when registering.

Registering with Search Engines

After your site is live, you or your Web consultant should register your site with all known search engines. This step will enable your site to be found when a Web surfer uses the engine to search for a particular topic. (Note: registration with some search engines take up to two weeks to clear.) Companies like Virtual Promote (www.virtualpromote.com) can answer many of your registration questions.

Announcing Your New Site

Be sure to take advantage of publicity opportunities both on and off the Web to announce your new site. These can be handled by you, but may definitely be worth outsourcing to a consultant. If you are already doing public relations, send out a press release regarding the benefits of your site to editorial contacts in business or your industry.

On the Web, send an e-mail announcement to the business associations, listservs and newsgroups you identified earlier in your site’s development. Lastly, register with the various "Cool Site of the Day," "What’s New," and other "Best of..." sites for extra exposure.

Swapping Links

The Web contains vast resources and including many currently existing sites that would compliment your business. Complimentary sites might include those in your industry, related industries, your geographic region and online yellow pages. Contact these sites to establish cross-links, or buttons that take visitors from their site to yours and vice versa.

To include links to complimentary sites, you may want to develop a section of your Web site entitled "Partners," "Cool Links," or something similar.

Putting your online advertising plans into Action

Several commercial online services, such as America Online and CompuServe, contain forums based on a particular topic. Participating in these forums is a way to promote your Web presence, and periodic postings to appropriate online services should be considered. Promotion in commercial online service forums is often a way to reach the "mainstream" Web users.

Tip of the Week

Some sites utilize a tip, quote or other interesting or informational tidbit to bring customers back to their site. If the tip is valuable and changes weekly, it gives visitors a reason to regularly return.

Other Considerations

Depending on the type of customer you are expecting, you may want to consider having your Web pages translated into other languages. If you are prepared to deliver your product or service internationally, you may find a significant market by catering to other languages. Some customers find the extra costs of shipping to be more than offset through the prices of products that are difficult to come by in their area of the world.

5. Site Maintenance and Enhancements Back to Top

Update Frequently

One way to interest customers in returning to your site is to frequently update your site. This keeps its content fresh and continually inviting. Updates may be more critical for some businesses than others. For instance, you may want to highlight seasonal items, sales, discontinued wares.

Incorporate New Technologies

As new technology emerges on the Web and becomes strategically important to your site’s goals, be sure to incorporate it. Web technology is rapidly improving. By keeping abreast of changes, you will keep your store in the forefront of your market.

Using Feedback to Improve Your Site

E-mail messages from customers and statistics about site visitors can provide feedback that will help you improve your site. For instance, you may notice that a particular Web page is visited more frequently. Perhaps that page contains a popular item you would want to highlight. Site statistics can help you determine how to improve the way that visitors navigate your site.

Periodic maintenance

Depending on the complexity of your site, you may want to arrange for periodic maintenance with your site designer/consultant. In some cases, your site may be simple enough that you will be able to handle the maintenance yourself.

6. MeasurementBack to Top

After your store has opened, close the loop by honestly measuring its success. Progress against your initial goals will be your barometer. Some areas to evaluate include:

• Financial
• Sales goals
• Return on investment
• Profitability
• Efficiency
• Order responsiveness
• Processing
• Integration with existing business
• Integration with existing business systems
• Site traffic
• Number and diversity of hits/visitors/links
• Conversion from visitor to customer
• Repeat customers

Some examples of DP/STORE sites include:

BumpAds, Inc.

Data Pro Accounting Software, Inc.