Today MYOB stuck it’s neck and suggested that if all local businesses had a website the New Zealand economy would grow by by at least 5%. What will they be thinking up next! Having been involved in the Internet and website development for 15 years this is not news to me. What surprises me is that they still actually have to say this.

What did actually surprise me was, according to MYOB, less than one third of New Zealand businesses have an online presence, but those that do earn significantly more than those that don’t. I am genuinely surprised there are two-thirds of New Zealand businesses that still do not have an online presence, and approximately 70% of those do not intend to get online. Another thing that does surprise me is by how little the Internet is actually contributing to the bottomline of New Zealand businesses (by MYOB’s estimates, 5-9%).

There are a few things that I am really interested in:

  • Why is the contribution to growth, for those who have a website only estimated to be between 5-9%
  • Why are so few businesses leveraging from the power of the Internet to generate greater revenue and profit

Why do websites only make a small contribution to bottomline growth?

A significant reason why the contribution to growth is low is because there is insufficient investment, or the right investment in an online presence. There is still the prevailing view that websites are cheap and that all you have to do is buy a template (or get a free one!) and you’re away laughing.

Generally speaking websites are not cheap, especially if you want them to make a significant contribution to your business or organisation’s growth. A website is a distinct channel, it has to be planned in the very same way as you would the opening bricks and mortar store. This not only includes the design of the site and its content, but the paths to conversion, understanding that conversion takes place in the mind of the visitor and not on the webpage.

Some owners have invested heavily in the design of their site and have still not generated a commensurate return on investment. This can be because little effort has gone into generating a profile of who the ideal visitor/prospect is. It is highly likely that a number of web developers have gone beyond their competencies in advising their clients, when in actual fact they are only designers. anyone contemplating the development of a website needs to ensure they have full compliment of skills and expertise in developing a website, not just a designer.

This really does tell me we are still along way from leveraging obtaining the best results from the Internet, which I think reflects both the lack of understanding and investment in this sales and marketing channel.

Why are so few businesses leveraging from the opportunities the Internet offers?

The world is changing. What worked five years ago are probably less likely to work now. People search and find people and businesses using the Internet. The Yellow Pages are less and less relevant and the Internet is more and more relevant. If you want to be found you need to be found where people are looking.

I had been in contact with a builder who wanted a website to promote his business and put himself on a level peg with others in his trade. After a while he decided he did not need to because business was going very well and there was no shortage of customers. Further, he felt, word of mouth as pwerful and worked very well for him. I agree word of mouth should not be overlooked, but it is just part of the overall marketing mix.

People are also becoming sceptical and not as willing to make direct contact without doing some “due diligence” first. In most cases this will be by undertaking a search for the person or organisation concerned. If you are not there, you are just not there.

Do websites work?

Whether you like it or not the Internet and websites are hear to stay. It is how a growing majority of people interact, get thier news, stay informed and do business. If you are not there, you simply “are not there”.

In the development of websites it’s very important companies not only make a sufficient investment, but channel that investment to where they will get the best return on investment. It is not just about design, it is about content, process and understanding the psychology of your visitor and ideal customer.

Websites can and do generate a return on investment. It is up to website owners to become smarter, by getting not only good developers and designers on board, but strategists and conversion experts who can optimise the success of the site to generate higher returns. I think if all New Zealand business got a website the economy could grow by at least 15%.