INDUSTRY VIEWPOINT - Turn the Web to your advantage

Chris Ellis, internet marketing manager of the internet & multimedia services division at BT, looks at trends in internet use and shows how dealers can maximise this by using the internet both as a marketing tool and revenue driver.

Estimates of the future size of the internet market vary widely. However, the consensus is that the market will grow rapidly in the next few years as PCs increasingly reach the consumer and ultimately propel internet take-up.

Should PC manufacturers and vendors use the internet to promote additional products and services? What are the benefits of implementing this strategy?

How should the internet be used to push sales? And how can it be used as a promotional tool after purchase?

Email is the number one driver for people to try the internet and stay online. 'Email culture' and internet growth will be stimulated by partnership marketing and product developments, such as internet keyboards. The easy-to-use iMac demonstrates the need to demystify technology to generate more first-time buyers.

For second-time PC buyers in the UK, quality of service and reputation are much stronger drivers than price in determining which internet service provider to join or whether to switch providers. Whether customers choose known brands or gravitate towards niche players, PC resellers can take these services and package them into a single, user-friendly package.

Despite early claims that users wanted a completely open and decentralised Web, once online, they typically select a site, visit it frequently and spend the majority of their time there. This is heavily influenced by browser configurations, pre-installed and controlled by service providers to make users feel as though they are seamlessly using multiple sites.

The US experience and the emergence of portal strategies to capture user 'eyeballs' shows that the mass market is prepared to concede control to the service provider if they value the content and experience offered.

The trend to 'surf' less and use trusted data sources more has led to an increase in brand loyalty. PC manufacturers and resellers can turn this to their advantage. Every PC includes a browser that can be configured to point to a specific URL. This is used to welcome fresh users or register them online. If vendors provide users with a reason to keep returning to or staying on their site, they create the perfect marketing environment.

The second element essential to developing an online relationship with your customer base is to offer customised services that will build loyalty and allow you to learn more about them. Offer premium services users would not get through traditional direct channels, supply news on purchased products, or partner with an online email service that requires users to visit your site to send and receive email.

These can help ensure or even increase user eyeballs and enable you to promote key messages or product information every time they go online.

Ultimately, a successful site provides a venue for marketing and selling additional products and services.

The UK is approximately two years behind the US in internet penetration and in the introduction of new revenue sources. If the UK market evolves as the US has, and indeed it seems to be developing more rapidly after the recent launch of the pay-as-you-go BT Click service and the Dixons-backed Freeserve offering, internet-based marketing activities and sales transactions will become a viable revenue source for resellers by the end of 1999.