Crisis Has Revealed Some Items Of Internet Business
There is a crisis in the world. In this time the part of the companies are closed, the part cut down the budget and reduced the personnel, the part of the companies has come to a conclusion about inevitability of merge to offline business.
Some analysts believe that a fatal role for many of them is too high level of expenses and not always defensible desire to expand the activity. Instead of attentively tracing movements of a cash and to concentrate on achievement of profitability, the companies afforded high and frequently unjustified expenses and thoughtless steps that finally ruined many of them.
What in a similar situation should do the Internet? This question set one of leading research companies.
Analyzing results of research it is possible to come to uncommon, however to an amazing conclusion on the simplicity: reduction of expenses is not the main thing, it is the most important to know in what sphere to cut down expenses and where should leave at former level and even to increase them:
So, on what according should pay the attention the Internet – companies wishing to achieve success?
Total profit
The companies which continue the activity in the conditions of absence of stable total profit should expect a fast trouble.
The business plan of many companies which have failed in 2000 has been initially calculated on long-term work in conditions with negative indicators of total profit. In other words, they initially leaned against incorrect strategy of business dealing. Obviously the companies which aspire to achieve viability should aspire to profitability achievement first of all.
Attraction of clients
According to the analysts, unreasoned expenses for marketing and advertizing actions were one of the most critical errors the Internet – companies last year. Those companies which have spent from $20 to $40 for attraction of one new client or more than 50 % of the profits on sales and marketing have today at all the best times.
Repeated attendance
The profit received by the company from one purchase, very seldom covers marketing expenses for attraction of the client. It is necessary to interest the buyer that he has wanted to come to you once again and has started to make for you profit.
On the average quantity of repeated purchases for the on-line companies doesn’t exceed about 1 % from their total.
The big work on attraction of the constant traffic and improvement of technology of purchasing is necessary to the companies. However, absolutely unessentially, as those companies whose indicators even five times exceed average indexes on branch will make profit.”
Positioning
If the company wishes to raise loyalty of the buyers it should possess considerable advantages in comparison with the competitors.
If you sell something in online it is necessary for you to prove convincingly to potential clients why they need to shop on the Internet and to buy on your site.
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