Saturday, May 25, 2013

ONLINE BUSINESS MODEL

Recession has created the biggest boon for the technology sector since the entire industry globally has taken a revolution from 2008 to till date. In my research I have found that the revolution of the various broad band speed which has created the birth of smart phones to rule over the laptops. In my research I have found that its study of 1,000 workers found that 83% of today’s office population regularly works from home or from another location in sectors including sales, marketing, finance, customer service and administration. The research found that 46% of office workers use a mobile or smart phone for work, 35% use a laptop and 72% regularly take calls and respond to emails outside office hours.

One of the biggest supporters behind this revolution is the young generation of human mind which is running on the wheel of innovation. The research also showed that 25-34 year olds are much more likely than their older colleagues to use their personal devices at work, almost one in 10 use a tablet to communicate with colleagues, one in five work mostly from a laptop and 14% use a smart phone at work.

With the revolution of the technology segment marketing and business growth particularly in the recession based countries like Europe (being the latest) have taken a new shape. Today business is based on virtual world and that’s what has replaced the markets. Social websites have been used extensively in an judicious manner to create the value of business and derive growth with minimum cost and optimum utilization of Technological based resources. Facebook, youtube, Linkdin, yahoo all are being used to create new business growth following path of technological innovation.


One of the biggest opportunities offered by IT is in the way companies can use technology to improve their Client Relationship Management. Well before a decade even people used to learn about CRM and today technology is being used to gear up the relationship. Big data analysis is another step where companies are expanding and broadening their relationship with their own clients which they have acquired once upon a time. At the same time the content writing has taken a revolution where these database of clients are being used judiciously. Such databases allow them to send out mass emails which, rather than simply being advertising tools more likely to suffer the delete button than to be read, exhibit more thought, a sense of value for money

Recently Europe has come up with an series of funding for the technological segment to grow.

Few glimpses of such investments:


• £189 million for big data and energy-efficient computing


• £25 million of additional funding for the National Space Technology Programme


• £35 million for centres of excellence in robotics


• £45 million for new facilities and equipment for advanced materials research in advanced composites, high-performance alloys, low-energy electronics and telecommunications


• £30 million to create R&D facilities to develop and test new grid scale storage technologies, helping the UK capitalize on its excess energy production, save money and reduce the national carbon footprint


• £350 million from the Engineering and Physical Sciences Research Council (EPSRC) in Centers for Doctoral Training.

As I said before recession has been a boon for the technology sector. Online transaction has taken a new shape in today’s arena. When we buy anything over the online we share that immediately for feedback on Facebook which automatically increases the customer loyalty. E-commerce is getting social active through social networking sites. Moreover discounts are another tool which is offered at an higher rate compared to the ones which is being kept on the showroom. The boom of online shopping is already created now it’s the turn of competition to eat up the business strategies. Real time transaction, order updates and inventory management have been compiled into e commerce trade. Cost management has been at the optimum level which further opens up the gate innovative business growth.

Online selling has 3 main prime features:


• Price


• Ease of selling and


• Trust of buying and meeting commitment.


The success of online selling, in essence, comes down to price or originality. If one offers more discount and coupon based games of promoting their business then their product will be sold more compared to shop. But now the competition is within the different online companies who are selling. The success mantra is very simple sell in such way that consumer loyalty is increased. Range of products followed with attractive pricing strategy key to grow.

Ease of selling begins with the variety of product and an common based payment system accepted globally. Localized mode of payment doesn’t help to expand brand value after a certain level.

Trust of buying begins the level of consumer loyalty to take birth. Its the seed for the loyalty which grows silently within the consumers mind. Referral based selling promotion is the best yardstick to measure customer loyalty. Facebook, Twitter are being used extensively to multiply business growth and customer loyalty. Customers develop a very healthy memory while purchasing online and this point needs to be kept in mind while building the selling process through online. Bombarding customers with additional offers and questionnaires that block the route to the checkout will only frustrate them. Ease of selling means that It will take a user just one twentieth of a second to decide whether they like the website or not, and this fraction of a second can be the difference between securing the sale or not.

The biggest challenge lies for the SME channel when they compete with large players of the industry. For them they have huge resources which large players often or rather completely ignore. Patience of listening is missing among the big players whereas smaller players have patience to listen them. Engagement of the client into discussion is the key to get the best feedback for developing business selling strategy. Well everything cannot be decided at the CEO’s table.

Last but not the least is that Metrics that can include the number of fans and followers, quantities of negative and positive feedback, and sales leads generated from social media.

Well challenges are many but with judicious mix of networking and selling can create fusion.

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