Keep the Web on a Personal Level
Distributors discuss how to profit from Web strategies without losing sight of the importance of their personal relationships with clients.
There is one common thread shared among distributors when it comes to their Web sites. Regardless of whether a site is managed in-house, is outsourced, is in the process of being developed or is well-established, distributors are adamant that e-commerce does not take away from cultivating lasting relationships with customers.
Distributors agree that the Internet continues to be a highly effective business strategy in the forms industry. From making their site more interactive with Web-based forms for tracking inventory, to promoting their site through a direct sales force, the following two distributors and one consultant discuss innovative ways to turn Web-based management into something both profitable and personal:
- Doug Clary, president, Intraform, Reno, Nev., www.intraform.com
- John Fox, president, Northern Printing Network, Wheeling, Ill., www.northernprint.com
- Hal Hinderliter, owner, Hinderliter Consulting and Creative Services, Boulder Creek, Calif., www.halhinderliter.com
1. When designing a Web site, what types of features work well and which do not?
Clary: The site needs to be attractive, but not too cumbersome or busy. Very little if any "flash". It's meant to be primarily an information Web site and a link to online ordering.
Fox: We are currently redesigning our Web site because initially we took our brochure and posted it to have an online presence. We've slowly been expanding on that to incorporate more e-commerce solutions, and online stationery solutions including business cards, envelopes and letterhead. That's growing pretty quickly, as are the e-commerce solutions. We plan to offer commercial printing and ad-speciality items online, in addition to document management and forms.
We haven't used our Web site necessarily as a marketing tool. Some companies may set up their sites and just sell items, but we're planning to customize our site for each client. We also intend to link to our suppliers' sites and maintain an FTP site so artwork can be exchanged between our customers and vendors. The other capability we purchased, which we're not using yet is a variable print module, which allows customers to enter our site and change variable data on a form. We have the foundation for a lot of capabilities, they're just not up and running yet.
2. Does your company utilize the assistance of a search engine that lists your name at the top of a server's list?
Clary: Yes.
Fox: According to our ISP, we have companies call all the time and inform us that they'll get us at the top of a search list. I'm assuming that can be done, we just won't know right now because we're still in the process of redevelopment.
3. Does your company develop and manage its Web site in-house?
Clary: It is something we're considering, but currently our Web site is developed and managed by an outside Internet hosting company.
Fox: We have an outside source that hosts our Web site because we're fairly large. Some of the larger distributors may be hosting their own Web site, but I think most are probably outsourcing.
Hinderliter: For most manufacturers, designing and managing their own Web site in-house presents the opportunity to learn and experiment with the medium that is having an enormous impact on the printing industry.
Even when the Web site grows to become more sophisticated, outside contractors can work hand-in-hand with in-house managers to assure that the site remains relevant, up-to-date and cost-effective to manage.
4. What impact has e-commerce had on your profit margins, and what percentage of your customers use your Web site?
Clary: Our larger clients are the ones most attracted to our Web capabilities as far as online ordering and real-time inventory. Some of these larger clients actually require that we have this capability to offer. As far as profitability, our Web capabilities enable us to retain these large clients and attract more like them.
Fox: We've set up one client right off the bat, but we have about five clients in the works and we've met with another one, so I think it's growing rapidly. Most of the people that want this service are thoroughly computer savvy.
We've only had e-commerce available on our site for about six months. In about a month, I could probably give you a better answer as far as e-commerce's impact on our profit margins.
5. How is the Web an effective strategy for tracking inventory and fulfilling orders and obligations?
Clary: It's very effective. It's effective on the front-end for our clients ordering needs and it helps reduce labor re-quirements for us as a distributor on the back-end.
Fox: Currently, we have customers begging us to complete our redevelopment because they will then be able to access reports, check live inventory and make all their releases from our Web site.
Hinderliter: It would be difficult to find an area that can benefit more from the application of Web-based management. To provide accurate and instantaneous information on current inventory to a client is very important, but to provide that service 24/7 requires automation via a Web interface.
6. Do you feel e-commerce has taken away from the personal relationship between distributor and client?
Clary: Web ordering has merely increased the ease and efficiency by which clients can order their product. We have not allowed it to take the place of high-quality, personalized customer service via a professional sales and support staff.
Fox: The debate we always have at our company is whether or not we are getting away from the personal service. But I think maintaining that personal relationship with our customers is still No.1 with us and I think it's probably No.1 with most distributors.
You still need the phone and you definitely have to have that personal contact and service. For us, the Web is just a tool. The front person, or account representative, and the customer service representatives are very important and the staff behind those people are extremely important. Our whole network of sources is the key to our business.
Hinderliter: In reality, a large portion of sales have already drifted to impersonal mechanisms, especially fax machines, voicemails and e-mail messages. Using a Web-based form to capture job specs and track progress through the manufacturing pro-cess is a simple, immediate and a cost-effective way to service that customer any time of the day or night. By using these technologies properly, manufacturers can actually reduce the amount of "go-fer trips" required of the customer service reps, leaving them time to address real concerns.
7. What are the advantages of Web-based strategies?
Hinderliter: Advantages include high availability (24/7), cost-effectiveness (automation), accuracy of information transfer (no rekeying) and the possibility of system integration between specific customers, manufacturers and vendors (automatic reordering).
Clary: The advantage is the fact that it's a simple and convenient process for the client.
8. What are the disadvantages of Web-based strategies?
Clary: Disadvantages would be the time and money it takes to set up the process and personalize it for each client. There's also a training and learning curve to consider to teach the client how to use the system. But, once the client is trained and up and running, this disadvantage becomes an advantage!
Hinderliter: Disadvantages in-clude the need for more investment in information infrastructure (both physical and human resources) and the complexity of designing and launching a targeted e-commerce effort, which can distract from core competencies.
9. What amount of time investment is involved to start up a Web-based business?
Clary: There were some trials and errors involved to perfect a system that was usable, efficient and accurate. We've had our Web ordering system for a few years now.
As far as printing distributors go, we feel we were on the cutting edge of offering this technology to our customers. We didn't have anyone to learn from, so it took some time and effort to get where we are today.
Fox: If you look at our sales per employee, it's one of the top in the DMIA. We're fairly lean, so we don't have a lot of overhead put into the IT department. We use a lot of outside, third-party people and consultants. So, the process is a little slower than I would like, but that's kind of the nature of the beast.
Hinderliter: From as little as a day to multiple years, depending on the complexity of the project, as well as the amount of financial and human resources devoted to the effort.
10. How do you promote your Web site?
Clary: This is where the "face-to-face" aspect comes into play. We promote our Web site predominantly through our direct sales force. We make a continuous effort to educate our current customers that this capability is available to them.
11. What kinds of trends do you see occurring in the Web-based arena in the future?
Clary: It's already becoming the norm. It's no longer cutting-edge, but it's almost to the point of being expected by customers. It's something that will be necessary for survival in this industry.
Fox: I think it's just going to become a bigger part of everybody's business. I've told my partner that I believe—in terms of utilizing the Web—if you don't have it, you're going to be missing the boat. If you don't make the investment and if you don't put the time in, you're going to be left out in the cold. It's going to become a necessity, especially to sell larger accounts. If you want your business to grow, you are going to have to use the Web as a tool.
Hinderliter: With new innovations such as XML and Micro-soft's Xdocs making the transfer of data between systems easier and easier, I expect to see tremendous growth in Web-based data capture solutions that will increasingly take the place of printed forms, even within small to mid-sized companies.
Today's manufacturers can learn to assist their clients in making the move from paper form to e-form, and to establish business practices that will enable them to make money long after the last printed form has disappeared. Those manufacturers who do not exploit these new opportunities will have little choice but to fight like vicious dogs over a dwindling number of print projects.
By Cynthia Graham and Jennifer Hans
- Companies:
- Intraform
- Northern Printing Network
- People:
- Doug Clary