The world of online business offers great opportunities for entrepreneurs of all backgrounds. Nonetheless, the statistics show that up to nine in every ten new digital ventures will be destined for failure within five years. If yours is going to be different, understanding the pitfalls is as important as following the right path.
Ultimately, an ability to win customers and sales is the main source of failure. Here are some of the issues that could be holding you back in this aspect, along with what can be done to overcome them.
Poor first impression
First impressions count for a lot in modern business, especially in the digital arena. Studies show that you get just a few seconds to spark an interest from the consumer. Fail to do this, and you’ve lost a potential sale before you’ve even had a chance to showcase your products and services.
The business must appear to be professional, relevant, and clear in its message and service. Utilising the latest and greatest web development features should provide a winning formula. While simplicity and clarity are key, looking outdated is never the answer. On a separate note, choosing a reliable web hosting platform is essential as regular downtime will put clients off.
Aside from the website itself, you need to get traffic. SEO and PPC marketing are crucial elements to consider as you look to direct people to your site. Whether it’s the professional route or the DIY option, getting it wrong isn’t an option.
Lack of direction
It’s not just about building a website that looks attractive, though. In truth, ensuring that your online business appeals to the right audience is equally crucial. Falling into the trap of trying to please everyone can lead to a generic approach that alienates the core demographic. Sadly, this is one of the most common errors of all.
Understanding your niche is as important for online ventures as offline ones. Once you’ve found your place in the market, creating the right products, content and brand image becomes easy. Without that sense of personality, it’ll be very hard for clients to relate. In turn, that will encourage the vast majority to keep scrolling.
Apart from anything else, the insight gained can have a telling impact on directing the future of your online venture to keep it on the right track. Given that sustainability is the ultimate aim, you cannot overlook this issue for a second.
No trust or online reputation
As an entrepreneur in the digital arena, you must put yourself in the consumer’s shoes. Having an interest in the company is one thing, but being ready to complete a purchase is another altogether. Consequently, the only way you’ll achieve those conversions is by proving that the business can be trusted.
Displaying contact details, even if they are from a virtual office address is vital. Likewise, business and VAT registration numbers show that the company is legit. Invest in a solid customer care game too, and there will be no reason for those new visitors to doubt your credentials. While this won’t guarantee sales, it will remove a major barrier.
New clients will conduct research into the experiences of other customers. Testimonials can boost your reputation while a referral scheme can actively promote more sales. After all, the power of recommendation is far stronger than any traditional ad campaign you may try to incorporate.
Lack of networking
Working in the digital arena makes it very easy to forget the importance of human interaction. However, this is the driving force that will essentially dictate whether your business succeeds or fails. Therefore, making the right connections and staying fresh in their minds is non-negotiable.
Once again, this is why knowing your place in the market is a crucial step en route to success. Using LinkedIn and professional platforms in an effective way will help you establish strong bonds in the industry. Staying on top of the latest ongoings while working with non-competing companies can also make a difference to your profile.
As for clients, staying relevant is a challenge in itself. Social media interactions offer a great way to encourage participation and a stronger connection. Similarly, sending e-cards and newsletters prevents the threat of being forgotten.
Limited capabilities
Aside from building a successful business model in and of itself, you must think about the competition. When working in the online arena, your SME could be directly up against global giants. Therefore, it’s inevitable that they will steal a portion of your key audience. The only way to truly combat this is to cast your nets further afield by reaching new demographics.
It doesn’t have to be you versus the world. Building a strong team can include outsourcing and partnerships to gain a greater level of national or global coverage. With the right distribution services in place, completing sales to clients from all over the world becomes a possibility.
Just make sure that the company is capable of fulfilling those order too. Increasing productivity will usually require improved facilities as well as increased staff. Still, finding a way to satisfy orders is a far better headache to have than one related to no sales at all.
No emphasis on conversions
While some of the features above are great tools, many businesses forget that conversions are the central focus. A strong social media following or blog readership counts for very little if it doesn’t lead to sales. Stay focused on this fact, and you’ll instantly stand a better chance than most.
Online consumers will shop on impulses, but it’s also far easier for them to close an internet browser rather than leave a store. Therefore, you need to gain a deeper understanding of calls to action, and how they can provide the gentle push to get sales over the line. Likewise, using timed offers to force them into making a decision can work wonders.
The business still needs to be supported by great products, services, and trustworthiness. Nonetheless, securing that initial sale is a major step towards gaining a loyal customer base. Once this has been established, long-term success is virtually assured.
