Did you see that European Production Survey? Only 45% of companies achieve a break even or better return.

Did you see that Production Survey? Only 45% of companies achieve a break even or better return on ROI. The Survey went on to say that 55% do not make any calculations of this kind. Don’t you find that shocking? Think about it!

Hold up a moment. In fact, it wasn’t a Production Survey, but rather a Web Marketing Survey. However the figures are correct. Are you more or less shocked now than when you thought it was a Production Survey? The truth is that you should be much more shocked for two important reasons.

A. Marketing deals with the total revenues whereas Production deals with Productivity and Costs. Marketing can easily have a much bigger leverage on the bottom line.
B. With Web Marketing, for modest costs and some human effort you can measure exactly what is going on. Production normally involves much more costs and human effort to tie down improvements.

In other words, getting results in Marketing is much more worthwhile and it costs much less to do.

Given this, why do most companies neglect their Web Marketing. The recently released Web Benefits Survey, undertaken by the European Centre for Customer Strategies, claims that over half websites are little better than financial black holes into which money is poured, never to return. You can find the details on the UsabilityNews.com website. It’s a sad story. Here are some of the other findings:
* 55% are unable to capture and prospect customer details
* 40% do not track visitor traffic
* Most companies do not use the web to get closer to their customers – under 15% of respondents make use of the web as part of a CRM (Customer Relationship management) programme.

If you understand the potential of Web Marketing, this story is even sadder. Those companies who do Web Marketing effectively find that it can drive rapid and profitable company growth. Web Marketing should be the tiger that brings you along on its tail. How sad that some through a lack of attention end up being sucked down into a financial black hole.

2 thoughts on “Did you see that European Production Survey? Only 45% of companies achieve a break even or better return.”

  1. The article is a little sparse in details and in methodology.

    For example, I’m a little unclear how generating more sales and adding functionality and web features are tied together.
    How is content customization, discussion forums or online surveys supposed to boost sales? You can get angry customers (or even one) on a discussion forum that could blast a product and reduce it’s sales. Of course if a product has a “defect” this could be beneficial to the company but that is something else… What benefit is there to having a survey?
    What kind of customer details are they looking for? There is a balance of what one is ready to disclose for information….

    I have no doubt that Web Marketing is important BUT only if coupled with good customer service. What do I mean by that? Well, answering email request. Too many times this is a neglected aspect. Customers (or potential customers) don’t get answer because the company is not set up to answer emails. And YES it does hurt your sales…

    Measuring the ROI on a website is also difficult because surfers are often looking for information in their buying process. They will return many times to a website before buying offline.

  2. I’m not sure what the Survey people defined as Web Marketing but I assume that Web Marketing = Internet Marketing.

    For most companies, I think Internet Marketing (IM) should be the key infrastructure for all their Marketing. Most other things will be supportive to the Internet activities. It’s all about CRM (Customer Relationship Management) in this Internet age.

    So I’m with you entirely on the point you’re making.

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