Examining the far-reaching impact of eCommerce from a benefits perspective – Part One
Intangible eCommerce Benefits

Some intangible eCommerce benefits are obvious and immediate, whereas others are less detectable and tend to really take shape over the long-term (i.e. they offer potential future benefits). As discussed earlier, SMEs that have moved forward with eCommerce consistently mention how significant these can prove to their business, despite the fact they are difficult, if not impossible, to measure. As one SME recently put it:

“It is very difficult to quantify the benefits of the Internet to our work, the best way would be to take it all away and then monitor the instant mayhem!”

The following section will attempt to provide numerous examples of these, in order to highlight their significance.

Confidence and insight in moving the business forward

Many owner-managers have noted how their experience with eCommerce has proved a significant factor in terms of giving not only the confidence to develop their business, but also in moving the company forward in the most profitable and strategic way. For instance, a well marketed Web site can often lead to enquiries and interest from different niche market areas, as well as export customers that have found the site, and registered their interest in no uncertain terms. In some cases, this has subsequently proved to be the underlying factor in investigating these markets, and having the confidence to assertively market to particular sectors or export opportunities.

These comments taken from the Sunday Times provide the reality behind the above comments - “When Dorian Holmes switched on his computer one weekday morning, he could hardly believe his eyes. Holmes, who had just launched a Web site for the new business, saw an eMailed invitation to tender for a £40,000 order for shoes for the Kuwaiti army. Despite failing to win the deal, the inquiry got the company to start thinking about the possibilities for selling their surf-style shoes and clothing abroad. Now, three years after the Web site launch, half of Skin Trade’s £600,000-a-year sales are to America, with demand in other regions, including eastern Europe, also growing.”

At other times this level of interest has encouraged some owner-managers to actually re-consider how they approach their business. Rather than adopting a ‘lifestyle’ orientation, it has convinced them that their product/service is commercially lucrative and have consequently taken a much more proactive and strategic approach to developing their business.

Other businesses have targeted particular geographical markets after hearing about their popularity with on-line shopping. For instance, kingsandqueenswales.com (who sell high quality giftware) are currently investigating methods of translating and localising their site for the lucrative Japanese market. Without a quality Web site it is unlikely this company would have considered targeting this specific market.

eCommerce can also play its part in giving SMEs the confidence to make specific changes to the way they operate. Heather Rodenhurst of Glog Farm, found that her experience with eCommerce gave her the extra assurance needed, to introduce a new price tariff covering different seasons for her B&B business. Once Heather had access to update on-line directory entries herself, she was able to trial different rates, assess the impact, and make any adjustments as necessary.

Quite clearly, communication from customers and prospective customers which eCommerce facilitates can prove to be a catalyst in giving owner-managers the confidence to develop their business and can also give ‘food for thought’ in terms of the direction a business should be taken in. These intangible benefits should not be underestimated (but often are) given that they can prove critical to long-term success.

It is important to note that some businesses have used the flexibility in terms of financial commitment to eCommerce, as a means to progress their use of it. For instance, an accommodation provider may decide to commit initially to marketing their business on-line by paying for a presence on third party tourism sites. As they are able to observe the benefits that result from this, it may give them the push they need to invest in their own site.   

Credibility with prospective customers, existing customers, suppliers and third parties

eCommerce can potentially play a considerable role in creating a favourable customer and prospective customer perception. As one Welsh SME recently put it “now that we have a quality Web presence our customers and suppliers seem to be of the opinion that we must be doing well”. Although this is a simplistic illustration it does show how a professional Web presence can lead to a positive customer and supplier perception and can strengthen company branding and help disseminate the company ethos.

Similarly being able to research a customer prior to a meeting also greatly enhances the image of professionalism when in discussion with that customer. Equally gathering valuable market intelligence via the Web can help create the image of a forward thinking organisation. These credibility benefits may prove to be significant in gaining new contracts, and generating more repeat business. In addition, it may also help in gaining favourable terms with suppliers, such as agreeing to deliver stock more rapidly.

The ability to respond quickly to customer enquiries via eMail and the removal of duplicate phone calls which can make businesses look inefficient (where eCommerce has given a business greater control over its activities) are two additional but very basic ways that it can help create a positive impression. Other eCommerce implementations or activities may involve alternative technologies, such as Electronic Data Interchange (EDI), and this sort of capability may also help create new and additional business, particularly with larger companies such as supermarkets. eCommerce therefore provides opportunities for SMEs to ‘hit’ a market that they wouldn’t normally have been able to target.  

A credible Web presence also creates other opportunity benefits. For instance, Woodworks (previously mentioned), recently received an unexpected call from an associated trade magazine. The owner was contacted in order to ask if he would allow some of his product images to be included in an article on the Shaker style – this has since provided valuable publicity for the business.  

Not forgetting of course, the ability of eCommerce to help perfect product and service provision and hence improve customer satisfaction and strengthen customer relationships. As Matt Wells of the Bethesda based youth and corporate development company, Outlook Expeditions recently commented “implementation of our eCRM (electronic Customer Relationship Management) system has proved central to our business and product development, enabling us to provide unrivalled customer care for our youth and corporate programmes”.

This article continues in Part Two.