Online Market Analysis
In the search for prospective customers, conventional business practice has relied upon traditional methods of advertising to sell products or services. To garner a face to face meeting with prospective customers, business referrals, cold calling, yellow page ads, print ads in newspapers and other publications, billboards, radio, and even television ads have all been used successfully in the past. Once a successful sale has been made, maintaining a good relationship with the customer is the ultimate goal for current and future business.
Companies that have been successful using traditional advertising and business practices are now wondering how to maintain their competitive edge in today’s rapidly changing business climate. They are noticing that their return on investment (ROI) from these traditional forms of advertising and business methodology are not as high as in years past. There has been mounting evidence showing the switch by consumers to online search, (Google, Yahoo!, Bing), to find local merchants and other businesses.
“In 2008, for the first time, search engines like Google, Yahoo and Bing were the leading source of information for local customers. This means that more local customers are now using the internet to find local merchants and other businesses online.”i
Search Engines Now the Primary Information Source ii
Companies that have been successful using traditional advertising and business practices are now wondering how to maintain their competitive edge in today’s rapidly changing business climate. They are noticing that their return on investment (ROI) from these traditional forms of advertising and business methodology are not as high as in years past. There has been mounting evidence showing the switch by consumers to online search, (Google, Yahoo!, Bing), to find local merchants and other businesses.
“In 2008, for the first time, search engines like Google, Yahoo and Bing were the leading source of information for local customers. This means that more local customers are now using the internet to find local merchants and other businesses online.”i
Search Engines Now the Primary Information Source ii
It has now become more important for a business wanting to reach customers to understand how this shift in customer shopping habits affects their operations today and in the future.So what is the solution? Adapt an online presence.To give some perspective on how fast Internet acceptance has taken place in our society, the following chart shows how various mass media adoption rates have occurred:
To show how fast the Internet has evolved and how it affects a business, here is some recent survey data. According to the Nielsen Online Custom Survey and Web Visible Inc.2008 study, compared to two years prior, yellow page usage has decreased 23 percent and local newspaper usage has decreased 41 percent by consumers searching for a service or product. Also in the survey:
Here are some other important numbers that are significant:
Now that we have established the importance for a business to have an online presence, how a business is found on the Internet is just as essential.
To that end, the following chart shows the biggest players in the current search engine market:
- 82 percent of consumers use search engines (Google, Yahoo! or Bing) vs. 57 percent who use Yellow Pages directories
- 50 percent turned to search engines first while only 24 percent chose the Yellow Pages
Here are some other important numbers that are significant:
- 43% of all retail sales are expected to be influenced by or made on the Internet by 2012.iv
- 83% of businesses use the Internet to research and find potential vendors.v
- 75% of web users admit making judgments about the credibility of an organization based on the design of its web site.vi
- The proliferation of better broadband technology in the past few years. (i.e. faster Internet=better experience). This means a more reliable, secure, and cheaper solution than in previous years of dial-up modems and expensive 1st generation broadband.
- The rapid increase of Internet use by consumers due to affordable and accessible broadband technology. The ability of consumers to save time shopping and comparing online before deciding to purchase.
- Financial institutions have embraced the Internet as a viable sales channel and have given better protection to consumers who shop and bank online.
- The cost of maintaining a storefront on the Internet and the potential marketing “reach” it affords has a much better ROI than other traditional business practices.
Now that we have established the importance for a business to have an online presence, how a business is found on the Internet is just as essential.
To that end, the following chart shows the biggest players in the current search engine market:
As the chart shows, Google is by far the current reigning champ when it comes to consumer use. Hence, a search query for a specific key term, (i.e. your business name), that puts your business website on the first page of a Google search result will ultimately yield the most potential “hits”. Exposure on the Internet is no different than having a successful business on the corner of a busy intersection… The more people see you, the better chance you have of getting a face to face meeting that leads to a sale. Or if set up right, an electronic sale right from your website!
The key to remember with an online presence is that it affords the business owner a 24/7 electronic storefront for consumers to shop and compare. Also, a business does not have to limit it’s search for consumers to just the local market. The Internet is a global information structure that can potentially connect a business to consumers from different cities, states, or even countries. If the consumer can find your business on the Internet and likes what you have to offer, they will contact you.
Recommendations
JDog Enterprises
Penn Valley, CA 95946
info@jdog.net | jdog.net
(530) 268-5364 (JDOG)
The key to remember with an online presence is that it affords the business owner a 24/7 electronic storefront for consumers to shop and compare. Also, a business does not have to limit it’s search for consumers to just the local market. The Internet is a global information structure that can potentially connect a business to consumers from different cities, states, or even countries. If the consumer can find your business on the Internet and likes what you have to offer, they will contact you.
Recommendations
- Create/Update Company Website-Maintaining an industry standard website is essential to stay competitive with other businesses and current with search engine standards. This will also allow better flexibility to modernize your website as more customers embrace the Internet to gather information, search for construction companies, and conduct business. Improvements to that can provide more visibility for current and web pages include: creating a unique campaign and webpage for each construction project to allow individual optimization and increased exposure, the use of more multimedia, (pictures, interactive maps, flash video, etc), when advertising construction projects, creating more interaction for potential clients on your website, (contact forms, questionnaires for listings, etc.)
- Initiate/Maintain SEM campaign-To create a popular and useful website, improved search rankings play a key role. The effects of an ethical SEM, (Search Engine Marketing), campaign towards improved website rankings will take time to develop. The goal is to define keywords that best describe your company and use those keywords to place its website in the top 10 search results on the big 3 search engines, (Google, Yahoo!, and Bing). Constant monitoring and feedback during an SEM campaign is very important in gauging the effectiveness of the various SEO (Search Engine Optimization) tools used. Studies have shown that most consumers do not venture beyond the first or second results page after initiating a keyword search. Until a business is well branded, this will be the most effective way to gain potential customers on-line. Potential customers exist far beyond traditional advertising boundaries. By using a combination of the original website and “linked sites”, (i.e. blogs, Facebook, published articles sites, etc.), a better ranking/visibility is attained from search engines like Google, Yahoo!, and Bing.
- Maintain website and other links through periodic updates-This step is essential to keep a website viable. Examples of website maintenance include updating content, adding features, and seasonal/promotional theme changes. A Customer Relation Management, (CRM), system should be considered for the website to manage customer contacts and content. Having this important tool necessitates the need to provide your company employees with training on how to integrate website tools into daily operations. Email campaigns, online coupons, and electronic newsletters are examples of the many benefits a paperless marketing campaign brings with an updated website. As more customers use your website, having them “spread the word” is key to increased sales. Websites operate 24/7 and are accessible by anyone with an Internet connection.
JDog Enterprises
Penn Valley, CA 95946
info@jdog.net | jdog.net
(530) 268-5364 (JDOG)
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i Local Customers Use Internet More Than Yellow Pages By Matthew Elshaw – Tue, 10/28/2008 – 11:3
ii study, conducted in July 2008 by TMP Directional Marketing
iii Sources: Morgan Stanley Technology Research: “E-Morgan Stanley Research Estimate and Harris Interactive: “Harris Poll #8.” Data re for U.S media adoption, using the launch of HZBO in 1976 as the estimate for the beginning of cable as a mainstream media.
iv Forrester: “The Web’s Impact on In-Store Sales: US Cross-Channel Sales Forecast, 2006 to 2012” and U.S. Dept of Commerce.
v Enquiro: “Business to Business Survey 2007.”
vi Fogg, B.J., Stanford Guidelines for Web Credibility. Persuasive Technology Lab. Stanford University, 2002 (revised 2003 )
ii study, conducted in July 2008 by TMP Directional Marketing
iii Sources: Morgan Stanley Technology Research: “E-Morgan Stanley Research Estimate and Harris Interactive: “Harris Poll #8.” Data re for U.S media adoption, using the launch of HZBO in 1976 as the estimate for the beginning of cable as a mainstream media.
iv Forrester: “The Web’s Impact on In-Store Sales: US Cross-Channel Sales Forecast, 2006 to 2012” and U.S. Dept of Commerce.
v Enquiro: “Business to Business Survey 2007.”
vi Fogg, B.J., Stanford Guidelines for Web Credibility. Persuasive Technology Lab. Stanford University, 2002 (revised 2003 )
