SMEs and the Internet

26 Aug 2008

This article loooks at the importance of the Internet for Small to Medium sized Enterprises (SMEs)

How important is the web as a business tool for SMEs? Should it form part of their marketing strategy?

Practically everyone, consumers and business people, use the Internet on a daily basis. Banking, buying consumer goods, research, watching videos and making friends are some of the activities people now do online. The number of Internet users in Ireland has risen from 20.9% of the population in 2000 to 49.6% of the population in 2008. Teenagers in Britain spend more time on the Internet than they do watching TV, and it is reasonable to assume that the same is probably true of Irish teenagers.

With such a huge audience available, it makes sense for an SME to communicate (and sell) with its customers and prospective customers on the Internet.

Along with this, the Internet is a more cost effective and measurable medium than traditional marketing channels (e.g. print, direct-mail and brochures).

You can log every click made with an Internet marketing campaign, allowing you to understand exactly how effective your campaign is. Not just the level of interest you generated but also the ROI of the campaign.

In past year, what have been the main things our clients have been asking for? Has the advent of internet-able mobile phones and handhelds affected website design?

Most clients want as much control of their web presence as possible. They don’t want to rely on a web developer to make even the most basic of changes to their website. They want to control as much of their content (including imagery and video) as possible.

A content management system that is tailored to a clients needs is vitally important in this regard.

In terms of functionality, more interaction has been requested by our clients. Polls, online surveys, videos, blogs, etc, have all been added to our client’s websites. There is an increasing desire to be more targeted and relevant to customer needs.

Web design is still primarily focused on PC Internet usage where screen size is much larger than on mobile devices. With the increase in the availability and use of broadband, content rich design is now more prevalent. Websites use more imagery and video than ever before. Although we need to be wary of this in Ireland as dial-up is still the most popular access method for the home Internet user.

While mobile Internet usage is on the increase with reportedly 15.6% of US mobile users using the mobile web followed by the UK with 12.9% and Italy 11.9% . However, the predominant services used are email, search, weather and sport.

Recent mobile devices such as Apple’s iPhone and, mainly in the U.S., Motorola’s RAZR, have made the Internet more accessible, but it’s yet to be seen if general Internet browsing (e.g. social networking) on a mobile device will start to match PC usage.

Aside from price, what are the other key considerations for a firm looking to get an online presence?

The main concern would be that their site should be as search engine friendly as possible. All of our Content Management Systems give users full control over the META keywords and descriptions that are used to rank sites by Google, etc.

Are some firms better served in prioritising functionality over form when it comes to their site?

Yes, generally the firms that are better at prioritising have a business model that has the Internet at its centre. For example, one of our clients (returntoglory.co.uk) is focusing on generating as many bookings as possible over the Internet. They do (and will continue to) take bookings over the phone, but their strategy is to increase online sales as much as possible. While form is important to them, they are very focused on making their site work from a functional point of view.

What are the most common mistakes firms make with their websites?

In the past firms have looked at a website as something they probably should do (seen as most other business’s have one), rather than something that can benefit their business by generating interest and, ultimately, generating sales.

It was seen as a necessary cost or overhead, and, to be honest, if your website investment amounts to 3 or 4 static pages that give basic company details, then that’s probably all it is.

Firms should view their website as a sales and marketing tool that can tangibly benefit their business by increasing revenue.

What are the future trends of websites?

Mobile Internet

The limitation of the user interface on mobile phones has limited its potential in terms of the Internet. The advances made by the iPhone could finally mean that the mobile web starts to really take off.

Internet TV

Online video has been around for a while (e.g. youtube), but there is still more to come with regards online TV. Current examples are joost.com, babelgum.com and zattoo.com.

Personalisation

With the explosion of social networking sites, users now more and more want to see “their” personalised version of a site, tailored to what they like. This has obvious attractions for advertisers as they can target their campaigns at a more granular level.

The most recent site we worked on is www.insigniaproject.ie. Developed in conjunction with Ocean Advertising, the site is a blog for the upcoming release of the new Opel Insignia, which is currently generating a lot of interest and getting rave reviews. The site makes good use of video and enables members to compile an “online playlist” for each of the main model versions!