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Hidden costs
when relaunching e-commerce sites
By Caroline Woolf of PIPC
Retail Week, 10 July 2009
QUESTION - We plan to relaunch our e-commerce site
and have been given a cost for development. Will there
be any hidden costs for the business?
ANSWER - The aim of relaunching a major e-commerce channel
will be to increase brand visibility and sales, and improve
the customer experience. However, in doing so, many retailers
can become preoccupied solely with the creation of a flashy,
all-singing and dancing website. Failure to assess how,
and ensure that, the wider organisation will fulfil the
relaunched website’s promises can be a major stumbling
block.
Caroline Woolf, management consultant at global project management specialists
PIPC, recommends planning for this and considering any
additional costs that may be incurred as a result. She
says: “An e-commerce system is only one touch
point for a retailer to connect with a customer, but
behind that is a machine that has to respond to the
greater demands that will be placed on it.”
For instance, if the new website results in more customer
enquiries, does the firm have the optimum level of customer
service staff to handle them efficiently? Woolf also
advises retailers to consider whether the order fulfilment
systems – including IT and logistics – have
been designed to take increased demand into account.
The biggest mistake retailers make when transforming
one area of a business is losing sight of the effect
it has on the business as a whole. “Planning the
implementation, timescales and budget upfront is the
only way to save spiralling costs and customer dissatisfaction
at a later time,” says Woolf.
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