The future of manufacturing and B2B products is going online, and I’ve seen the impact a well-designed eCommerce site can have on a business. It can bring in more customers, streamline the sales and fulfillment process, and increase revenue.
Once companies see the results, they often come back to invest even more in their online systems. They understand the benefits and can see the value for their business in the long run. Unfortunately, too many businesses stop short of the initial investment.
Significant changes require a commitment over time. It’s not a magic bullet. But nothing that is about real growth and value ever is!
In order to grow your eCommerce revenue, you have to take the long view.
Upfront Cost
I talk to a lot of businesses about building or upgrading their eCommerce site, and they all want to know the same thing -- how long will it take to recoup our investment in eCommerce development?
It can be a significant cost, so it’s understandable that you want to know how soon you can make your money back. And, while it can be a complicated question, we do have an answer which I’ll share with you.
But first, it’s important to recognize our tendency to avoid things that are challenging now in order to achieve results in the future.
Long-Term Value
It’s hard to invest for long-term success. It’s been shown over and over in the areas of personal finance and weight loss, among others.
I know this first hand because my body does not look like it once did. I no longer have the athletic shape I took for granted in my early 20s. What I really want is to find the quickest way to obtain my former self. Preferably something that requires minimal time doesn’t stop me from enjoying cheese and libations, and ultimately, produces mind-blowing results in a week. But we all know it doesn’t work that way.
A couple months ago, my wife approached me about doing a diet together. (First, let me go on record saying my wife is about as healthy as they come and this diet was her way of getting me motivated -- brownie points!). Fast-forward a week and we had committed. The workout schedule was pinned to the wall, the fridge was stocked with fresh produce and ice cream had been vacated from the premises. This 6’2, 235 lb. former football player was ready to become -- a fit girl.
Unlike a fad diet, the “fit girl” program focused on realistic return on investment. Expectations were set in advance – this diet was not about losing significant weight in a month. It was about making better choices and ultimately getting healthier.
The cold hard truth is that the most effective way to get into shape is diet and exercise. Plain and simple. We hate hearing it because it takes work and time. Diet and exercise will not provide us a quick return on investment, but the long-term benefits are undeniable.
Investing in your health is very similar to investing in an eCommerce solution, which isn’t about creating a quick win scenario. The commitment to an eCommerce solution is about looking at your organization’s goals for future success and planning accordingly.
This same conversation takes place at Brilliance Business Solutions daily. Our instant gratification culture has altered the return on investment concept. We expect things to be “fast” and we want rapid results, while the idea of having to wait sends us running for the hills. Have we created unrealistic expectations about what a return on investment should look like? More specifically, what can you anticipate for return on investment when reviewing eCommerce solutions?
Investing in your future
With a view toward the future, let’s get back to the question at hand. How long will it take for your business to recoup your investment in eCommerce development? What exactly is the value you will see over time?
There are a lot of factors involved, but we have come up with an ROI Calculation, which can be found in the free B2B eCommerce Planning Guide.
Download your Planning Guide here, and look for the Return On Investment Worksheet on page 17. It will walk through the numbers for increasing your revenue through eCommerce.
The direct return is created by attracting a larger number of prospective customers to your business and site, improving the sales conversion rate, and increasing the average order size. We have techniques for maximizing these results on your site and measuring them over time.
There are also indirect ways to see returns on a better eCommerce solution, such as decreased customer service costs, improved productivity by sales reps, fewer shipping errors and increased dealer loyalty, to name a few.
eCommerce is an undeniable part of the future of manufacturing and distribution. Putting off the investment just means putting off the results. Will you find yourself looking back in 3 or 5 years wishing you had started now?
I hope not! Download your free eCommerce Planning Guide, and get started today.
