Using Web-based Tools to Generate ROI.

By Rob Thrasher

I can't tell you how many times I've been approached, or been on the phone drumming up new business prospects back in the old days, and heard the comment, "I only sell widgets in a local market and the Web can't really help me." Then that same person whips out a lap top, opens a spreadsheet, examines sales revenue, profits, losses, then goes back to work on their company brochure using another software tool. They are completely unaware that the Web is just another platform to conduct all these day to day business functions, plus a whole lot more, all in real time. But now the books can keep themselves, send an alarm to the business manager based on predetermined criteria, function in real-time via the Web site, and a plethora of other possibilities. As the new economy takes shape we see more and more business people realize the potential of the Web as a tool, not a toy.

When computers hit the marketplace business people ran to the store to buy them. They had no in-house plan for how they would utilize the machines and, thus, they ended up as advanced word processors or, worse yet, as solitaire partners. A well laid out strategy would have detailed how shipping, production, finance, human resources, etc. would implement the new tool, but instead the computer got a black eye as a useless pie in the sky advanced checkers partner. Nobody in any company would admit that there were hundreds of things the computer could do to increase profit margins, but that they failed to develop a plan that would train the shipping people to utilize the very task specific tools available to increase their efficiency.

Eventually the word got out to all the different managers in the various departments that a software tool existed that could make their department more efficient. Now we are in a very similar circumstance with the Internet. All it takes is one good hard evaluation of what types of tools either exist or can be created, and how much ROI can be generated utilizing these tools. When we reach the apex of activity with regards to the Web business people will have come to the realization that the Web is just a big network on which all the software tools they are already familiar with can function in real time and with exponentially increased effectiveness.

The only limits on what can be achieved are your imagination and, oh yeah, your budget. You can, though, find a wide variety of companies, depending upon geography, that will provide quotes at a drastic discount from the typical firm. Here is a list of tools provided available through members of VirtuallySolved.com that could increase your Web ROI immediately.

  • 'Intelligent Site' - Your site should be empowered to perform functions that make you more efficient, effective and grow faster. The site should be used as a software tool that can be programmed by the right people to have features that are higher-level from a functionality perspective. The site should inform sales staff when there is a potential sale in the site, when the site sits idle for too long, remember customers and automatically submit specials, reward people who interact with it, contact prospective clients regularly, and so much more. If your site doesn't perform these basic tasks, then it wasn't built as a software tool.
  • 'eId' - Drawing from one master content database creates multiple portals for browsers. The different identities can be based on several criterion. One of which is marketing data similar to that used for the 'Piecemeal Marketing' principle, but in this case we use predetermined marketing data gathered via preexisting determinations or via newly conducted data mining. Some other factors might be variations of the URL, days and holidays, geographical location of the browser, etc.
  • 'iRemember' - A personalization technology that is based upon a principle called 'Keyword Culling' and assists the 'Intelligent Site' with the task of remembering browsers and their activities.
  • 'eLead' - Real-time lead generation using the Web site. We never recommend using sites as electronic brochures. 'e-Lead', built by the wizards at NETDesign, enables your 'Intelligent Site' to monitor browser activities and, based upon certain preset criteria, alarms sales professionals to a potential sales that might otherwise have been missed.
  • 'Piecemeal Marketing' - The site should be used as a powerful tool to collect marketing information in the way with which people are comfortable. Browsers don't enjoy filling out large forms to give YOU a leg up on your competition. A web site should be used to slowly build a profile of each browser. And, upon doing so, you use the data to generate the look and feel of each browser. Upon first visit browsers are asked a question such as, "Tell us your age so we can custom build your Web experience." Based upon birth date the 'Intelligent Site' presents a different look, feel and tools or games within the site. In the future, it is easy to implement a different look based upon many different criterion. This information is slowly summed in a database as browsers navigate and interact with the site. The profile allows you to accomplish many tasks. Some include: 1) Addressing users by name upon entrance into the site, 2) Sending users birthday greetings, 3) Offering special discounts while they are in the site, 4) Determining if the browser is about to buy a product using 'e-LeadGen', etc.

In a recent Knowledge Management seminar in New York City, I had the distinct pleasure of partaking in the wisdom of Ashok Chandra, Senior VP from Verity. His company alone working as the 'top information management company in the industry' claims that because people spend close to 90% of their time searching for information, on the Web or via the companies intranet, utilizing technology to better catalog data to ensure more efficient retrieval of the data induced the following results:

  • The most impressive was a client that achieved an 1800% ROI in just a few weeks.
  • An AT&T automated RFP process netted an extra $26 million in revenue.
  • Siemens converted to online product manuals and reported a savings of $125,000 PER DAY.
  • Libri.de, a foreign auto sales Web site, DOUBLED its browser to buyer ratio, thus doubling sales.

A recent article, 'Payback!', published by ZDNet in "Smart Business Magazine", highlighted many tools that proved that Web tools can produce pretty impressive ROI results:

  • Cisco Systems slid $86 million to its bottom line last year, thanks in part to virtual-close financial reporting.
  • Six years and more than 30,000 additional employees later, Cisco increased the number of expense report auditors by ONE, to TWO.
  • FMC Corporation used the Web to cut its legal spending by half a million dollars.
  • Worldspan chopped its per-transaction cost for travel planning from $50 to just $5 with online booking.
  • Swales, a smaller company, started using Hire.com last June, and grew its talent pool to 1,400 candidates with few resources."
  • One company saves up to $9,000 per month with its online strategy.
  • Online purchasing lops off an average of $77 per order.

Summary of the tools highlighted in the article:

At this point in the new economy, every company should already have a serious eBusiness plan that clearly identifies how a return on investment (ROI) will be generated by utilizing all available Web tools to increase efficiency and profitability.

If not, go get one quick!