Part 1 of this series covered the need for Web developers to understand the nature of 'value' in business, to better target a site's design to create value and produce that elusive ROI. In this part we will specifically look at showing value through increased sales and reduced operational costs.
Essentially, there are three ways to deliver value to the business - online or off:
- Increase sales
- Reduce operational and administrative costs
- Increase marketing effectiveness e.g. brand perception
Let's look at how website design can impact each of these factors.
Increase Sales
The reality is that it is usually not in the power of the Web development team to introduce e-Commerce to a company. For true e-Commerce to be successful it needs to be embraced as a part of the core business strategy, not tacked on as a separate entity. It is in this way that business decision makers will be committed to ensuring their online presence is a success.
However, once in place, good site design can increase sales by providing the customer with a successful and pleasing experience - in other words, enabling them to do what they wanted to do as quickly and easily as possible, with the minimum of frustration. Over the years I've seen increases in sales volumes in excess of 1500% achieved in just two months through some simple workflow changes to a booking process. In site design terms this means:
i) Focusing on the customer's experience:
- Providing customers with clear pathways through the site so they can easily find the information they need to make a purchase.
- Streamlining the purchasing process to reduce the percentage of aborted transactions.
- Following up the initial sale with post-purchase communications and support to build a relationship with the customer so that they are more inclined to return for repeat purchases.
- Making the act of purchasing from you so easy that the customer is likely to recommend you (or your client) to their friends, family and colleagues .
- Providing an environment that is secure and respects the privacy of the customer.
- Providing a stable server environment that maximises the likelihood that the customer can complete their transaction and reinforces their good impression about the quality of your company.
ii) Heavy reliance on good information architecture and workflow design.
iii) Functionality balanced with good visual design so that customer's attention is not distracted from the task at hand.
Reduce Operational Costs
Effective Web design can reduce operational costs through three key strategies:
- Automate repetitive tasks
- Streamline processes to remove unnecessary or wasteful tasks
- Shift the burden of effort onto the customer, who needs to go through the process anyway
Streamlining processes removes unnecessary tasks so that time can be refocused on improving the quality of service.
Business process re-engineering has been around for 20 years or more and the benefits of simplifying and automating tasks are obvious. Web design plays a key role in that it provides the impetus to review the efficacy and efficiency of business processes before simply automating them online.
Two common methods that Web design teams can use to reduce operational costs are:
- Remove double entry of data by getting the customer to verify their details at the time of entry and then integrating directly into the appropriate internal systems.
- Deliver customer support services through the Web to reduce call centre volumes. Every potential call handled via the Web site saves between $8 and $30 .
Less common, perhaps, is the practice of centralising the creation, publication and administration of documents, Web content, and other forms of data, and utilising the Internet to syndicate these out to multiple distribution channels. However, the reduction in duplication of effort across, say, Marketing teams, can greatly reduce costs within the business.
In Part 3 we will cover: Increasing marketing effectiveness and overcoming a cost cutting culture.
Steve Baty is the Senior Analyst at RedSquare, one of Australia's leading full-service Internet agencies. Founded in 1995,Red Square's clients include Telstra, Smorgon Steel Group, P&O Nedlloyd, Youth Hostels Australia and Panasonic Australia.
Do you need help with Web Technologies? 





1
Laura Augusta - 04/05/09
I want to hire a friend to update and market my web site and am considering offering a percentage of sales in lieu of payment. Is this often done, and what would you consider a fair percentage?
» Report offensive content
2
Lucy - 12/07/09
Hi Laura
Personally I don't think hiring a friend is always the best way to go. You may save money now but in the end, if the work is not done with your branding strategy in place, you will not see many results. There are many ways to approach your marketing strategy and a web provider can assist you with those options.
Good luck though,
Lucy
» Report offensive content