Industry professionals talk about the reasons and the results behind their interactive Web sites.
Make no mistake. The World Wide Web has become the impetus behind greater business communication. And, although the initial incorporation of the Internet into daily business practices can be long, tedious and quite expensive, many distributors are more than willing to foot the
e-commerce bill in return for e-business potential. Interactive Web sites that allow customers to in-put and retrieve information on the status of their orders, as well as communicate with distributors, are proving to be efficient tools that should eventually level out upfront costs.
To find out just how worthy interactive company Web sites are, BFL&S called on the following panel of distributors to report on their findings and expectations:
• Mark Davidson, president, Professional Forms, Blair, Neb.
• David Duysen, president, Business Products Management, Richmond, Calif.
• Shawn Gminder, general manager, Professional Graphic Communications, Cranberry Township, Pa.
• Bill Kaufmann, founder and CEO, ImprintStore.com, Tacoma, Wash.
• Janis McNeal, president and CEO, McNeal Graphics, Memphis, Tenn.
• Greg Turner, president, TBF Graphics, Saginaw, Mich.
Why did you decide to invest in an interactive Web site?
McNeal: "For one thing, we wanted to simplify what we do. Right now only one of our customers will use the site [which is currently being designed]. We wanted our customer to be able to pull up a form instead of sending it to the corporate office where it is then typed and processed."
Duysen: "We started three years ago when a customer asked to order items from the warehouse online. It just took off from there. Soon another customer wanted the ability to order business cards and other custom items online, so we developed templates for importing graphics and text blocks."
Turner: "One of our biggest clients wanted a company with electronic capabilities to serve their needs. So for us, it was a strategic move to solidify our position."
Gminder: "We decided to be a company that could adjust to changes quickly and adapt what our customers would find beneficial and easy to use. Finding an easier means saves time and money and makes each of our daily work environments a little more livable."
Has your site met your expectations?
Duysen: "Love it! It's a great door opener for us, especially up against the majors who don't have the flexibility some customers are looking for. The majors have a canned package—'take it or leave it.' But if a customer wants a particular look, e.g. certain graphics or features, we can provide it. The majors also usually require multiple authorizations, which is very time consuming."
Davidson: "We are reengineering our site so our customers will be able to search for the information they need. It will help them get an immediate answer on such things as inventory. This should be a timesaving feature for our customers and us."
Duysen: "Our site definitely eliminates fax and phone activity related to ordering. It will never replace all of our functions, but for high transactions, it's quicker and more efficient. It prevents our sales reps—and the customer's employees—from being bogged down with this stuff, allowing them to be more productive with their time."
Turner: "It definitely makes life easier by streamlining operations. We get electronic orders off the server in the morning, then pick and deliver the same day. It has cut our volume of order-related calls and questions by more than half."
Gminder: "You will not find online ordering of our company product through our company Web site. Our main site showcases what we can do and is information-based only. Online interaction happens at a separate customer site [through hyperlinks, etc.]."
Kaufmann: "We see the Web as an effective way to communicate ideas and encourage creativity. Our focus isn't on what people buy, but why they need it. Think about it—the fastest growing off-line companies in the past have been those who were creative, not product based."
How has the Web enhanced operations for you?
Kaufmann: "Our largest growth has been with customers opening online stores with us. Plus, the site has brought us customers outside of our area that we wouldn't otherwise have contacted. And customers seem more inclined to pre-pay online than offline—we even accept checks online. It also saves money on sales commissions, although these profits are going right back into future development."
Turner: "We use the Web as an educational tool, guiding customers through composition issues, submitting electronic artwork correctly, etc."
Davidson: "Because we view ourselves as an extension of both our customers' and our suppliers' business, our site will be interconnected so we can begin processing an order as soon as a customer submits it."
Gminder: "Our operations run smoother now because we've been able to accommodate our customers' specific requests by providing customized ordering, distribution and fulfillment services for them."
What are some of the advantages and disadvantages you've encountered?
Kaufmann: "The greatest challenge has been in the investor funding—as the dot-coms dry up, investors become a bit nervous. We had to reassure them that we are a value-added company. Also, rapid growth has meant bringing on more staff and educating them not only to the industry, but to online operations like artwork formats, graphics and being spontaneous with ideas. it's sometimes difficult to communicate creativity in this less personal environment."
Davidson: "It should be clear that the site's purpose is not to reduce the amount of personal attention we give to our customers. Instead the site will enhance it. In fact, we will see our customers face to face as much, if not more."
Kaufmann: "All of the dot-coms going out of business has had a huge impact on ordering confidence. Customers are afraid that they won't get their orders. They're also confused by many sites that are not user-friendly. Customers look for assistance in the decision-making process. They don't want to have to go through all 80,000 products. Our phone number is in very large type on our home page. On some sites, you really have to search for it, or it may not be there at all."
Duysen: "It certainly hasn't been a straight line progression, but more of a learn-as-you-go project. It isn't something you can just pull off the shelf and run with. And providing a custom site can be costly—maybe $2,500—but with customers spending hundreds of thousands of dollars per year, it's an easy decision."
McNeal: "The initial cost is high, but the benefit to us is that our customer is happy. And the good news is that we can easily add-on customers in the future and the cost will be lower over the long run."
Do you or your customers have any concerns about using the site?
McNeal: "There are some security concerns our customers have, particularly with pricing. To remedy that, we are integrating secured features so that type of information is not available to everyone."
Davidson: "We have to provide a safe haven for all of our customers. People are becoming more familiar with the Web, so those who are comfortable using it can. It is our customers' prerogative to use it. It is not mandatory."
What's in store for the future? Do you plan to provide additional services via the Internet?
Davidson: "The way our culture and business is changing, it is foolish to think we wouldn't be able to do more with it down the road. I'm no soothsayer, so let's jump off that bridge when we come to it."
Duysen: "The future plan is to develop a seamless system, linking our computers to the Web interface. We also want our custom sites—which currently lack data base recall—to pull up previous orders with static information in place, so customers just need to make the changes."
McNeal: "One of the things we're discovering is that our customer is not completely automated to the point that all of its branches can pull up the site. So, until then, we will still handle Web site transactions as well as traditional ones."
Turner: "We're definitely working toward full e-commerce capability; adding the ability to accept credit cards and such."
Kaufmann: "We're marketing focused—not just technology focused. We're staying ahead of customer interests and will continue to keep adding to our site. We want to take the time to do it correctly—test out what is working and what is not working. I've spent more in one year on the site than I've earned in five, but it's an investment in the inevitable future. The industry isn't changing, but buyers are.
By Sharon R. Cole and Maggie DeWitt