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When Edmund Marquez opened his auto dealership in 2000, he incorporated an Internet strategy into his business plan from the get-go.
Commercial uses of the Internet were just beginning to grow, but Marquez could envision the day when the Internet would play a major role in auto sales. Today, 67 percent of new vehicle-buyers use the Internet in their automotive shopping process, according to J.D. Powers and Associates.
Marquez saw opportunity in allowing people to shop his inventory from home or work, but it was his instant loan approval tactic that really brought them through the door. His dealership generates about 60 percent of its $6 million in annual auto sales through Web channels.
“Just showing inventory wasn’t enough to sell product. We had to add an interactive piece—allowing them to prequalify online,” says Marquez, principal of Edmund Marquez Suzuki in Tucson, Arizna. “Our Internet strategy also weeds out people who are just browsing without serious intention to purchase a vehicle.”
The auto industry is undergoing a major marketing shift—and so are many other industries. Developing an Internet strategy, then, could be a key in crafting a “survival of the fittest” business equation. But tossing up a slapdash website for the sake of having an online presence is not sufficient in today’s Internet-savvy world. Developing an online strategy should be tackled with the same forethought and planning as any new business venture.
“Internet strategy development has to start by looking at the overall strategy of your organization. What are you trying to achieve? What does success look like? Who are your customers and what value do you provide to them? Any Internet strategy that is not based on the answers to those questions is merely fumbling around in the dark,” says C. David Gammel, president of High Context Consulting, a Silver Spring, Maryland-based marketing communications consultancy.
An e-commerce site that sells mattresses, for example, would demand different strategies and technologies than a professional services firm’s content-based lead generation site. Selling to customers online is much different than providing them information that compels them to pick up the phone and call you. E-tailers rely on product images and shopping carts, whereas lead generators require copywriting that convinces visitors the firm is credible.
Regardless of the business model, building credibility online is vital. Marquez built his car dealership’s credibility online by building its brand reputation offline. However, in many cases, your website may be the first impression visitors get of your firm. The goal is to balance a visually pleasing site with one that meets your business goals, according to Pedro Sostre, president of Sostre & Associates, a Web consulting, design and development firm in Miami.
“Spending money on a website that isn’t going to perform is a common mistake. The Internet offers lots of ways to spend money. Most of those ways don’t pay off,” Sostre says. “A bad search campaign can cost thousands a day before you even know it. A search engine optimization campaign that targets the wrong keywords can have virtually no effect. What small- and mid-sized businesses can’t afford is losing money from various ‘trial and error’ efforts.”
Sostre hits on a key component of developing an Internet strategy: marketing. You can’t just build a website and expect customers to come. There are several ways to drive traffic, including natural search optimization, paid search campaigns and viral marketing. You can be successful with each without breaking the bank, Sostre says. The trick is choosing which tactic best suits your business.
Marquez tried paid search to attract car buyers but discovered it didn’t pay off. Instead, he spends his marketing dollars on radio and TV spots, where he blasts his Web address. His site attracts hundreds of qualified leads a month.
“Many people make the assumption that the Internet is a unique medium. In some ways it is, but in most ways it is no different that any other direct marketing medium. Creating an Internet strategy needs to be formulated in those terms,” says Lanny Goodman, CEO of Management Technologies, in Albuquerque, New Mexico. “What is unique about the Web is the speed at which you can get your message out and the speed at which you can get feedback about the effectiveness of your efforts.”
Indeed, any company familiar with direct marketing will find familiar ground on the Internet. A company that is not familiar with direct marketing can struggle unless they learn the fundamentals. Sometimes that means hiring a consultant or staff to head up the Internet side of the business.
Experts agree: The biggest mistake companies make when developing an Internet strategy is failing to measure the results of their efforts. Most Web hosts offer Web analytic tools available that can track the number of visitors different search engines drive to your site. From there, you can determine which search terms were most effective and how many visitors are converting to customers.
Says Gammel, “Ultimately, a good Internet strategy will provide a framework for making decisions about how you use the Internet in support of your goals.”