Decision Funnel Affects Companies’ Online Presence
Review of the article by H. Eisen “Save money, increase productivity, enter new markets? No thanks”, Backbone, Oct 2011: http://www.backbonemag.com/Magazine/2011-10/canadian-smes-use-of-technology.aspx
In her article, which is mainly a compilation of ideas from various sources, Hailey Eisen points out that many Canadian businesses do not adopt information and communication technology (ICT) as effectively as they could. There are numerous ways for the companies to boost their productivity, cut costs and enter new markets using social media channels, e-commerce and cloud computing. Still, according to Google Canada, “more than one-third of Canadian small businesses have no online presence whatsoever” at the time when close to 80% of the customers use internet to search for products and services.
Eisen emphasizes the benefits of ICT for all kinds of small and big businesses, she shares tips on how to maximize companies sites’ potential, and endorses the free “Get Your Business Online” tool by Google (gybo.ca), which is also supported by one of the “Dragons” – Kevin O’Leary.

Sounds simple: just develop your website on gybo.com and follow the tips: keep your site simple, have a specific call to action on your homepage, keep content fresh and updated, drive traffic to your site. However, I think that this article is one-sided and does not speak to the difficulty in developing and maintaing quality websites.
But the question is – do all businesses require virtual presence? In addition to being listed in the online yellow pages, and such review websites as urbanspoon.com, yelp.ca? Should all companies have their own standalone sites that must be maintained and that should offer high quality of 7Cs (content, context, interactive communication, commerce, customization, connection, community)?
I believe that the choice “to be or not to be” online depends on company’s decision funnel (P. Cubbon, BAMA 513 eMarketing MBA elective, P6, 2011 – http://blogs.ubc.ca/paulcubbon/).

Many small businesses focus on offering incentives to buy, repeat and recommend. Their decision funnel is shaped like Trumpet (A), and they focus on getting the referrals and repeat customers. For such companies, investing in sophisticated websites is not worth the effort.
The businesses that target as large a pool of prospective customers as possible, use the Magician Hat’s approach (B). It is these companies that require intensive use of ICT. The same is true to a degree for the companies that use C and D method.
While creating the website should be relatively easy using gybo (see my recently created and blank website: http://www.elenabobyreva.ca), and the site can help generate the buzz in the virtual world, many small business owners do not have technical savvy to maintain their websites and leverage all the tools it can offer. Their websites will likely get out-of-date and make a poor impression on the prospective clients. The owners won’t know how to use search engine optimization (this elusive tool that everyone brags about it, but uses it mostly inefficiently) or how to manage negative comments from the viewers.
According to Industry Canada 2009 report, 600,000 small businesses have between 1-4 employees – they simply do not have resources to spend on ICT.

In addition, brand is not what the company is trying to push on their consumers. It is what the consumers make of the company. If the clients are happy with the services or products, they will find a way to spread a good word on Facebook, Twitter and other social media channels (approach A – trumpet). If they are not happy, they will use exactly the same avenues to express their negative feelings.
There is no doubt that e-commerce can help to save money and increase company’s profitability. However, it is false to assume that every business’ goal is expansion or profit maximization. Often, the strategy is focused on earning reasonable returns, maintaining family and/or environment-friendly culture, and retaining family control. Many owners do not aspire to turn their businesses into franchises.
Don’t get me wrong – I’m all for the well-developed websites that are like the hikes to the mountains: with every turn (or click) the view from the mountain gets better (the website value proposition stronger).

But bad websites may become company’s liability since they may turn the clients away. Just browse some of the bad websites here: http://www.webpagesthatsuck.com/.
Therefore, my answer to Hailey Eisen’s article is that GYBO and other online tools work for the businesses that can use them effectively. If the business does not have the resources to maintain their online identity on their own, they should rely on the means they are using in the offline world – word of mouth – and the digital communities will help them in the virtual reality as well as the real customers helps them now in the offline world.