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The word “recession” has suddenly (and unfortunately) become one of the most used words anywhere in the world. Economy is going down and, among the others, there is a very important downside: people slowered down their purchases, whether online or offline, because of a general fear about the future.

This is not certainly good for everyone and, on the contrary, in a period like this people should invest more in order to minimize the impact of this bad behavior to the whole economy. If people don’t buy, economy will suffer even more.

Another downside is that people are not certain about the future of the companies they are dealing with. For example, some people could think that buying something online now could lead to a huge risk because that companies could shut down tomorrow and the risk to loose their money is very high.

A couple of weeks ago my company released a white paper where we analyze how the “human touch” can help people during an online purchasing process. During a recession, people need to feel that there is someone behind any service, any shop they come across while in the process to buy something. A naked, cold website is not enough anymore, but they need someone who can help them to take the right decision and make the right choice, avoiding doubts, fear and making them trust their shop/company even more. That’s where our service Sitofono comes into play.

I’d like to share some paragraph of this white paper with my readers, in order to highlight some important points that maybe are not that evident for some companies selling products/services through the online channel.

The purchasing process (originally elaborated by Kotler)

The purchase is articulated in 5 phases, plus a sixth concerning post sales: 

1. Unawareness 

The potential customer is not aware of his role. He still does not know he has 
a need to satisfy. This behaviour can often be seen in the purchase of clothing 
and hi-tech products. To induce a purchase, someone or something has to suggest to the potential customer that he needs that product/service. The potential customer has to be made aware of his need.  

2. Awareness

The consumer becomes aware of his role. He realises that a specific product/service could be useful and starts to understand its utility, persuading himself that the purchase of that product/service could benefit him.In this phase, it is fundamental that the seller can be found, and that he can provide an image of the need and how it can be satisfied by his product/service.

3. Search 

Now, the “conscious” customer looks actively for the product and starts an information-gathering phase. As always, the first impression matters a lot. That’s why it is important to provide a strong and clear image of your product. The potential customer must be kept as close as possible to the “shop window” and must be put in a position to assess any information you want to transmit. This is where Sitofòno comes into play, offering “reassurance” and support to complete the information gathered about a product. 

4. Assessment 

The potential customer now has all the essential elements to decide what to buy, but you cannot expect him to purchase immediately. Product assessment will probably occur in different steps, because the acquiring of elements on which a choice is based is an on-going process.  A recent article in the New York Times underlined how “human” contribution during the sales process still has a fundamental importance in raising the success rate:   

“Any online selling company has been warned: get ready to invest in traditional “human” customer care, otherwise be prepared to  lose customers”   

5. Purchase 

The customer has decided: he wants to make the purchase. Making the purchase easier is the main objective in the selling process. It is here you risk more, but you can also finally achieve your goal.  In this phase Sitofòno comes into action as a “support element to conclude the transaction”. Placing Sitofòno inside the product data sheet and encouraging its usage when something is not clear or when the customer has problems and/or has to face a mistake (i.e. wrong credit card number), stops the customer from going to another site where the product information is more complete, so he can conclude the purchase.

6. Post-purchase assessment

Now you have a new customer, but it is not the end, on the contrary now it is possible to close the sales phases circle and unleash a chain reaction. Satisfied customers are inclined to speak well of their purchase: they are happy they have found a bargain and they will recommend you to their friends and relatives or they will simply speak about you and your product.

This is just a brief abstract, I definitely encourage you to download the white paper and try to figure out how to make your website’s online store even better by making the purchase process an easy game for your visitors. In times where everyone has doubts and needs reassurance, you can play a fundamental role and make your business grow safely.

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Technorati Tags: Business, Business and Economy, Company, Credit card, Customer service, luca filigheddu, Online shopping, recession, sales, sitofono

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During these days the latest articles by “top” US bloggers are all about how to survive from the huge financial crisis which is hitting the US market with all the evident consequences and impacts for the worldwide economy. When I read Robert Scoble’s blog, for instance, what I feel is FEAR.

I’m not really surprised since laids off are going on in many companies in Silicon Valley and Venture Capitals like Sequoia are rising a red flag advising their portfolio companies to prepare for a not that wonderful future. The truth is that companies don’t want to take risks and want to preserve their cash for bad times. I call it, again, fear.

In my opinion, the main goal for these companies must be the following: they should sit down with partners and investors and focus on their business model, if any. Yes, IF ANY. My perception is that too many startups in the past months have been focusing on getting money from VCs and Angels without any clear idea on how to make money. Ok, many companies did a great job without any business model in the past, but times are changing and everyone must face it.

I can’t remember how many companies I talked to which told me that “still don’t know” how to make money but, focusing on their product/service and supported from one or more VCs, could help them to find out a potential buyer, sooner or later. In times like this, when investors are not willing to risk too much and companies are laying employees off, if you don’t have a viable business model, the risk to hit the deadpool gets higher.

The times for a “quick and dirty” exit with a reasonable ROI for everyone involved are ended IMHO, also because big fishes are becoming more wise and are not going to buy new companies/services without having a clear idea on how to leverage them. Think of eBay and the Skype / Stumbleupon deals, for instance, companies which are both likely to be sold again. Those times are just memories, acquisitions are nowadays more focused for big names like eBay too.

Guys, this is the right time to get the following questions answered:

1) What problem is your product solving?

2) What is your target market?

3) Are your potential customers willing to spend money (real money, that is issuing payments from their bank to yours, just to be clear) to solve that problem in (1) ?

4) Does your business make sense in the mid and long term?

5) During a recession, have the questions above the same responses?

Focus on how to make money and to make your product a problem solver, otherwise the deadpool is behind the corner. And don’t tell me advertising is your business model. Please.

Technorati Tags: Advertising, business model, economy, luca filigheddu, recession