The Web Is the Most Common Way to Sell - ' Nine out of 10 '
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companies sell on the Web, but only half say the Internet is among their most profitable channels.">
Finding 2. Nine out of 10 companies sell on the Web, but only half say the Internet is among their most profitable channels.
E-commerce is everyday business now, but it's not about to make your sales force and telemarketers obsolete. Field sales, retail stores, telephone sales and distributors are all more profitable channels, despite the additional labor costs. The Web is most adept at reaching niche markets—the so-called
"long tail"—and most profitable when a company's Web site attracts new customers. Still, old and new customers prefer other ways of doing business, and the best way to use technology may be to help salespeople instead of replacing them. However, it's worth noting that the Internet is most successful at companies that serve both consumers and businesses. For example, the complexity of financial-services companies seems to make the Internet an effective alternative to traditional channels. Also noteworthy: Few companies have found a way to take advantage of Web 2.0 technologies to turn a profit.
Research Guide:
Finding 1: The hunt is on for new customers; most companies continue to favor growth over cost-cutting.
Finding 2: Nine out of 10 companies sell on the Web, but only half say the Internet is among their most profitable channels.
Upcoming results from the Customer Strategies survey:
Nov. 8: The ability to collect customer data still outstrips the ability to put the data to work.
Nov. 15: Sales and marketing technologies are often not deployed, and frequently fall short when they are.
Nov. 22: Customer service products linger despite IT support.
Read our previous surveys on customer strategies and related topics:
July 2005 Customer Strategies Survey: Can You Profit As Customers Get Smarter?
October 2005 Business Intelligence Survey: Business Intelligence is Valuable, But Falls Short of its Potential
August 2004 CRM Survey: Will Old Problems Sink New Users?
September 2003 E-Business Survey: Is E-Business Finally Starting to Deliver?
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