Crude oil is approaching $200 a barrel, and the impact is resonating through every business. If there were ever a time when investing in the web made sense, it's now. Information flow is a key cost centre for most businesses. Whether it's sales and marketing, shipping or production, getting information on the web can save time and money.

Since the costs of many business activities are directly connected to travel and transportation it is important for businesses to look at ways they can reduce  some of these expenses.  Companies can mitigate the rising costs of trade show and sales related travel by attracting new customers and closing sales with a well-designed website. A compelling sales message supported by engaging multi-media presentations can reduce dependence on traditional marketing channels. While face-to-face sales calls will always be an integral part of a successful marketing campaign, transferring some sales steps online can streamline the process.

Listing, updating and featuring current inventory online will save customers several “just browsing” trips and bring them closer to making a buying decision when they do visit the store. Using the website to post eNewsletters, sales presentations and product features will increase sales opportunities, reduce mailing costs and provide potential customers with up-to-the-minute information. Warranty claim forms, technical bulletins and other product support materials can also be made available online, reducing printing costs and improving customer service. 

Using the web to reduce costs associated with oil prices also works hand-in-hand with improving customer service. Most people like being in control of their buying experience, thus the advantage of empowering customers with online tools and services. The more a customer can learn before visiting the store in person, the more comfortable he or she will be that the visit to the store – and the eventual purchasing decision – will be positive.

The rising cost of oil is just one more consideration for businesses looking to achieve a strong bottom line without compromising service quality. The company website should be a cost saving and sales support tool regardless of market or economic conditions. A well-built website with a good site management plan will help any company become more efficient, grow sales and improve customer service.

eMarketing Soars: Will You Keep Up?

The Interactive Advertising Bureau of Canada says Internet ad spending topped one billion in 2006 and 1.337 billion - a 32 percent increase - in 2007. The US Advertising Spending Report from eMarketer projects that in 2008 Internet advertising will represent 9.3 percent of total media spending, rising to 12.1 percent in 2010. The facts are clear: no longer is the Internet a mish-mashed compilation of random information; it has matured into a credible, effective and, most importantly, essential business tool.

That's right: essential. The days when having an online presence was optional are over. Increases in ad spending are a logical progression in the flow of  being successful, and the trend is simply about staying competitive and targeting an open market – hardly new concepts in business.

To illustrate, consider that seventy percent of Canadian homes have the Internet, and Statistics Canada says 41 percent of Canadians who used the Internet in 2005 - about seven million adults - contributed to the $7.9 billion spent online on goods and services that year. By 2020, 40 percent of retail purchases are expected to be made on the web. Businesses large and small are responding to the e-spending spree, and developing new standards about what doing business means in the world.

Like any marketing effort, having a successful online presence requires careful planning, a clear set of short and long term objectives and a stable budget. The first two items are generally manageable, but when it comes to budgeting things get hazy. Rather than calculating the ad budget on, say, a percentage of sales basis and treating it like any other vital expense, it is often treated as an after thought or a luxury.

The tendency is to increase spending on programs meant to increase site traffic such as search engine optimization or pay-per-click advertising. These tactics have their place, but increasing traffic is only effective if a good percentage of site visitors become customers. A more lucrative approach is to develop a strong, customer-focused website that increases the conversion rate and increase traffic later.

The “conversion rate” (visitors to purchasers) of a typical site is one to three percent, but there's always room to improve. Becoming successful in this way means taking into account the issues impeding conversion. The nice thing about Internet marketing is that the results are trackable. By monitoring traffic on a site it's possible to see where people are clicking, how many pages they view and at what point they decide to purchase (or opt out). Once these types of habits and patterns are established, it's possible to make the necessary changes and find out what works.

For example, if people are opting out on the product information page, can the language be clarified? If customers conduct multiple searches and then abandon the site maybe the search parameters can be modified. Keeping at the top of the sales and marketing game means paying as much attention to customers online as in person and making sure a site reaches its full potential as an effective tool. As online spending increases, monitoring and improving site activity is becoming a greater part of the sales game and of staying competitive in the business world.