Having your business online - what's it really worth?

Could your business be losing out if it doesn't have an internet presence? A recent report by IMRG (Interactive Media in Retail Group) shows online shoppers spent a massive £132 million on Christmas Day last year, up 29% on the previous year.Boxing Day’s figure reached a whopping £281 million, a 23% increase in year on year.

In addition to revenue from traditional direct sales, monetisation of online retail sites could be worth £949m by 2013, according to recent research commissioned by Webloyalty, a leading provider of incremental revenue for online businesses. So even if your business is small and sells products or services you don't think can be sold online, you should have a website, and you will be loosing out if you don’t. No question.

Don't be quick to dismiss your products as ones that can't be sold online. There's very little that can't be sold over the internet. More than 20 million shoppers are now online, purchasing everything from books to aeroplanes and even intangible products and services such as insurance and investments.

Although online retail has seen considerable growth - on average 37% per year over the last ten years, it has been significantly impacted by the recession. This has cost internet retailers an estimated £1.6bn of lost revenues according to Webloyalty, that would otherwise have been gained had the recession not hit.

Online shoppers are also becoming more demanding, searching for competitive prices, the biggest bargains and extra value. This presents a great opportunity for retailers to differentiate themselves from their competitors and add value to the shoppers' experience and their relationship with the retailer. The recession, and more recently the weather, has encouraged internet shoppers to change their purchasing habits. Online retailers are now finding it more challenging to attract new customers and must add value for their existing customers. Activities such as loyalty and referral schemes, targeted special offers and even simple ongoing communications though services like email marketing to your customers should all part of your online strategy. 

Better understanding of your customers and regular, targeted communication will lead to a deeper, ongoing relationship. For example, a simple email to question why a customer didn’t complete a sale could highlight a problem faced by more than one of your customers.

Basket abandonment is something retailers need to be aware of and address immediately if they want to avoid losing a potential sale. Providing clear, accurate and detailed information on your products prior to the payment stage, including prices and additional charges is key to reducing basket abandonment.

Simple, low cost research can also be undertaken through your website via online polls and surveys. This can be used to gain valuable feedback from your customers and enable you to improve your service and even your products. Additional revenue can also be generated here by linking with specialist poll organisations that will pay to have a presence on your website.

The point is that you should at the very least have a presence on the web. Not least so that customers, potential employees, business partners and perhaps even investors can instantly find out more about your business and you products or services, but also to maximise income streams available to your business.

That said, it is not enough to just have a website. You must have a professional-looking, fully functional site if you want to be taken seriously. Many consumers now search for information online prior to making a purchase at a physical store. Your site may be the first chance you have at making a good impression on a potential buyer – your virtual shop window.

Your site speaks volumes about your business. Let it generate volumes of your business too.