The Alternative Press

In the last few days, I've asked several business owners the following question:  "Why does your business have a website?"  Most of the answers I received from business owners were "because a website is necessary to demonstrate my commitment to my business."  The second most popular answer was because business owners wanted to project an image of being up to date by using technology. 

While there is some validity to each of those statements, neither one is sufficient justification to invest in a website.  And I'm pretty confident that if either statement reflects the justification that your business used to develop a website, your website is not contributing much, if any, value to the business.

A website is an investment in your business that should provide a return.  Business owners should lay out the goals of the site and match it up with their budget before spending money on a website.   The process of doing so is not as open ended as it sounds, because websites are only good at doing three things:

1.      Bringing in new customers

2.      Reducing operating costs

3.      Providing customer service

 

And while the actual cost of a website can vary from several hundred to several thousand dollars, the relative cost of each type of website is predictable.  Bringing in new customers is the most expensive, followed by reducing operating costs.  The least expensive type is providing customer service.

 

Here’s why:

Bringing in new customers requires the ongoing expense of running paid and natural online search campaigns.  There is no other way to score high enough in a search engine page rank without an ongoing commitment to search marketing.   To be fair, the cost of the search campaign should be included in the budget to build the site. 

 

Reducing operating costs generally requires gathering information from an online source and using that information to perform a business function.    For example, in retail that means ordering products online, processing payment and shipping information and updating revenue and expense data.  A professional services firm, (architect, web developer, lawyer, medical professional, etc.)  could allow clients to book appointments online or could send out invoices and accept online payments from clients via their website.

 

Customer service is the least expensive because it can be as simple as providing information.  For example, a restaurant, would post online menus while an appliance manufacturer would post product use and care manuals.  A chiropractor could demonstrate back-strengthening exercises on their website.