by Sudhir Narasimhan, Consulting Editor, Trivone Digital Services
New Delhi, September 1: Twelve years ago, most of us who used to cover the channel wrote editorials on how channel players should leverage the power of Internet to engage with their existing customers as well as prospective ones. In the following months we did see many of them setting up their websites and posting details of their products and services online.
However, when we look at the market today, it is obvious that most traditional resellers, while they still do have a web presence, have lost the plot and failed miserably in exploiting the Internet’s multifarious capabilities to deliver positive business outcomes. Meanwhile, there has been a rise in prominence of new players on the web who sell everything from computers and peripherals to mobile phones, consumer electronic goods and apparels. Some of the leading IT vendors tell me that this new generation of retailers, aka e-tailers, account for almost 10 per cent of their overall sales.
The single biggest differentiator of this new generation of virtual channel players that sets them apart from the traditional brick and mortar outfits is their understanding of the dynamics of online and social technologies and their ability to monetize exactly that. In recent years they have displayed superlative logistics capabilities and uncanny marketing prowess. Much of this has been possible because some of them, like Flipkart and Amazon, have seriously deep pockets to draw from. The shopping experience on some of these sites is so good and the prices so competitive that they are transforming consumer shopping behavior once and for all. In the last year or so I ended up buying a number of products online, which I would otherwise have preferred to pick up from a physical store where I get to touch and feel the product.
The intention of this piece is not to exhort you to add a payment gateway and a product catalogue to your website and start locking horns with rivals from the virtual world. I know it for a fact many of you have moved away from box selling to offering integrated solutions and services, and also that most of you today are probably catering to enterprises rather than consumers.
The point I want to drive home is that recent technological advances and the evolution of Internet, mobile Internet and social technologies have led to the emergence of a super-connected world leading to a radical change in user behavior.
There was a time when you had to know your customers personally and pay them many visits before they trusted you enough to put their monies where their mouths were. But these rules of customer engagement are gradually changing as people and organizations are realizing that the virtual world, in its current form, enables them to check the profile and track record of any potential associate on the Internet. Also technologies like tele/video conferencing are enabling them to connect with various stakeholders including employees, partners, suppliers and service providers virtually in a cost effective manner. I have been witness to many an instance in the recent past where potential customers have relied on profiles on social media and internet research data to draw up vendor shortlists. I see this becoming the norm moving forward.
So what are the implications of these trends to your business? Clearly you need to review your web and social media presence and evaluate if they are delivering you value.
For starters, review your website and see if it communicates your value proposition clearly and effectively. If it doesn’t, there are plenty of communication experts out there who can help you with this. Spend some time exploring various social media outlets and see how you can create a good profile of your company in order to better engage with potential customers. There are umpteen social media tools out there that come handy while locating and engaging with your target demographic. A well thought out online strategy can significantly add to your strengths on the ground. Are you aware of the changing market realities and how you can respond to them? Or do you think that traditional wisdom is enough to keep you going thru’ the next few years?
I am looking forward to hearing from you. Please feel free to share your thoughts.