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Survival slim for stale sites
I live in Ottawa, Ontario (Canada), also affectionately
known as "Silicon Valley North." My office is located about
three blocks away from Corel's head office. But another large, Canadian
high-tech company based in Brampton, Ontario -- network giant Nortel at
http://www.nortelnetworks.com/
(formerly known as Northern Telecom, with offices in Ottawa too, I might
add) -- sent huge ripples over the ewaves recently with two major headline
news.
First, Nortel announced the launch of their new fiber optic technology
aimed at increasing bandwidth (up to a whopping 6.4 terabits, or 1.6 trillion
bits, per second) -- all on a single fiber no larger than a strand of
hair. And this week, their acquisition of ebusiness firm Clarify was another
astonishing move. Nortel's $2.1 billion stock-swap deal with Clarify,
the developers of CRM applications ("CRM" stands for customer
relationship management) proves, in part, that relationship marketing
on the Internet is fast becoming a standard.
In a recent interview with InfoWorld, Clarify CEO Tony Zingale stated:
"Commerce only represents a transaction. But that is not building
an enduring relationship with a customer, (...) because what people really
want is a relationship. You really have to incorporate all forms of communication
into an ebusiness model to build an enduring relationship with a customer."
(Read it at www.infoworld.com/cgi-bin/displayStory.pl?991019.hnclarify.htm.)
"Forms of communication" don't necessarily merely mean complex
and expensive online applications that only large companies with robust
websites can afford. They also include the simplest of tools, such as
ezine publishing, opt-in email marketing and even good copywriting, which
are still being ignored by most struggling ebusinesses. I also believe
that the lack of such tools could in fact become expenses in themselves.
A recent issue of Inside 1 to 1, published by customer relationship management
consultant Peppers and Rogers Group (http://www.1to1.com/),
looked at the diminishing return on investment for some businesses caused
by their failure to properly capitalize on and measure relationship marketing.
The spotlight was on a survey developed by Primary Knowledge (for more,
see http://primaryknowledge.com/index.html?id=prg72399).
In an interview with Bob Dorf, Primary Knowledge CEO Peter Adams declares:
"Ebusinesses today are moving at the speed of light and are selling
in an increasingly price-competitive, low-loyalty marketplace -- they
are not coming close to the level of business success they could be enjoying
if they maximized the yield of their online customer relationships."
Ecommerce Times (http://ecommercetimes.com)
recently reported that, according to new research released by statistics
compiler Nielsen/NetRatings (http://www.netratings.com),
online shoppers are looking, among others, for a personalized shopping
experience over low prices (see the entire article at http://www.ecommercetimes.com/news/articles/991019-2.shtml).
Ecommerce not only improves sales but also cuts costs. According to a
study released by the Giga Information Group, businesses saved an estimated
$15.2 billion, in 1998 (figures are probably higher for 1999), by selling
products online and improving their business models with the help of the
Internet.
The ecommerce study, printed in a recent issue of "Business and
the Internet" published by NorthEast Internet Publishing (at http://www.neip.com/),
claims that the web "makes business more efficient by allowing instant
publication and rapid circulation of marketing materials" (such as
with ezines, for example). Giga vice president Andrew Bartels added that,
consequently, "it strengthens relationships between customers and
retailers" (for more, see http://www.neip.com/company/media_room/marketing.htm).
Nevertheless, while tools help the relationship-building process, relationships
are not made with online tools let alone websites -- they are made with
the people behind them. And beyond sophisticated applications, the one
thing to keep in mind is that the web is, in itself, a direct marketing
tool -- requiring the ultimate power of words (especially in a world that
lacks humaness). Words online are powerful -- more powerful than any other
medium in existence. They help build trust -- the most crucial element
of any relationship.
Copywriter Nick Usborne, of http://www.nickusborne.com/,
agrees. In one of his many ClickZ articles, he states that sites with
flashy graphics (and with "rich media") can indeed grab eyeballs
and entertain site visitors. But converting visitors into buyers, and
establishing relationships and trust with them, require the skillful use
of words (see http://clickz.com/article/cz.400.html).
With the web indeed moving at an incredible pace, it is safe to conclude
that relationship marketing is also growing just as fast. And thus some
of the simplest tools to cultivate superior online customer relationships,
such as email newsletters and good marketing copy, should never be regarded
purely as ways to increase sales and reduce costs -- as time goes on,
they will become essential to survival in this hectic, electronic jungle.
About the author
Michel Fortin is a direct response copywriter and consultant dedicated
to turning sales messages into powerful magnets. Get a free copy of
his book, "The 10 Commandments of Power Positioning," when
you subscribe to his free monthly ezine, "The Profit Pill."
See http://SuccessDoctor.com/
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