Business Alignment: the bringing together of your online and offline businesses
Many Web Consultants do a really good job of spouting buzz words, but very few talk about the importance of aligning your physical business with your online business, but what does that really mean? How can it add value to both business units? What needs to happen to achieve this?
When I say “alignment” I mean, does the online business reflect your offline business. Does the online business offer all the core products/services your physical business offers? For example, Rebel Sports is known for its massive array of apparel and equipment for all sports known to Kiwi’s. However, when you go to the Rebel Sports website it is nothing like a physical retail store. What does this mean to Rebel Sports? People who search for products and are not loyal to a retailer will search in Google for product names and not find Rebel Sports. FYI – over 20,000 people typed in “Nike shoes” into Google in June 2010 and Rebel Sports is nowhere to be seen in Google for this term. No one typed in “Rebel Sports Nike Shoes”.
To achieve alignment, the first critical step is a paradigm shift among Senior Management. Key decision makers must agree the website or the web channel is a key business unit and a heavy contributor to revenue. Revenue not only for the online channel but growth in the offline channel as well. One of the benefits businesses gain from alignment is the crossover business which occurs among both channels (multi channel retailing). For example, when Exceed Online built a new website for BBQ Factory, the retail managers of their physical outlets could not believe how many customers came into the store with printouts of BBQ’s. The Store Manager’s and their staff did less selling because the website was doing it for them.
You can look in the oldest Marketing books and you will find the golden rule of Marketing is to make it easier for your target audience to do business with you. By aligning your website to your physical business, you are bringing your offer to not only Kiwis but to the world. These days it is common business sense to build alignment, those who do not are now being left behind.
If you have other good examples of businesses not properly aligning their physical and web businesses, let me know.
My next article will tackle the key ingredients in building alignment.
