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Marketplace Mechanics
To build and sustain an online presence, managers must obtain the right technology, as well as develop the competitive strategy that provides critical insight into their buyers.
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Developing and evolving your e-business infrastructure is a challenge because each month brings new players, new possibilities from which to choose. It is critical to have a decision framework to sort through the possibilities. A dynamic, integrated, strategic plan helps everyone become focused. A dynamic plan includes assessment, analysis, strategy and tactical implementation. Businesses are taking steps so that they are not left out according to research recently completed by the Yankee Group. One important aspect is the efficiency gained by companies. However, efficiency needs to be calculated carefully because addressing the customer's needs is critical to success and any aspect of a calculated plan that doesn't incorporate customer loyalty as a component is doomed to failure. As businesses bring their companies online, the volume of business needs to be present. Many tout their electronic marketing techniques, however, an integrated approach, combining the winning and proven strategies of direct marketing with the newer sophisticated marketing programs of e-business create a winning formula. Today, e-businesses are finding that direct marketing, utilizing direct mail is exactly the high impact, high-yield tool they need to drive people to their site. Whether they are there to look or to buy, each business has the opportunity to gain a customer for life. Very few companies have mastered the use of customer loyalty economies as their e-business measure of success. Yet many of the winning business-to-business and business-to-consumer companies are now focusing on customer-focused metrics, such as:
* Number of Customers
* Profits per Customer
* Share of Customer Wallet
* Customer Retention Rate
* Increase in Revenues per Customer
* Decrease in Cost to Serve each Customer
* Number of Referrals Generated by each Customer
When asked what effect business-to-business e-commerce will have on their company, 55% of IT professional responded that they were looking to create new markets or new market niches. (Infoworld Digital Survey 2000) A key driving factor having the most dramatic effect on their business became the increased integration with business partners. A true indicator of success in gaining momentum in a new market sector is likely to be prior business relationships. Were your customers happy with your products and/or services? Were you able to provide them value? Do you have reliable business partners?
Although interest in the digital marketplace remains strong, participants face an uncertain path to the heralded online economy and its opportunities. As the business-to-business opportunities present themselves, it will be critical to understand the rules. Developing a dynamic, integrated plan that can save you time and money by helping you develop a profitable customer-focused strategy that you can refine and iterate.