Local, regional, national or global? It is a challenge that many businesses face - what are they and what do their customers want them to be?
There are logical answers for some businesses - a taxi firm will always want to be perceived as a local business whereas a delivery company will probably prefer to be known as at least a national business.
The challenge of how your customers perceive your business is not always an easy one to navigate and does throw up many questions. Can an online business ever be local? Can a High Street shop with an online store ever be national?
Where you position your business can have a striking affect on which customers select you and which customers you should be trying to attract.
In local communities such as where I live there is a clear desire to keep business local as much as possible and that is a view that I wholeheartedly endorse. But what if you are perceived as local but don't want to limit your geographical reach by not appealing to potential customers further away?
There is a common perception that a local business will provide better service and care more about their customers but that is not to say that a local business can't or won't offer a terrible service. Indeed, there are many larger operations that offer a very personal service at a very high level.
Loyalty is a key differential - the typical customer is likely to be very loyal to the local High Street shop they have shopped at for years whereas the loyalty to Tesco's, whilst possibly used more, will be much less ingrained.
So what are the options for the local business looking to grow their online presence?
Well, firstly you need to consider if you want to or need to use the same brand name. Whilst you may have a very loyal customer base locally this will be of only limited benefit to you online. Consider if your brand name is appealing enough for an online business. If your conclusion is that you want to grow and develop your brand then secondly you need to assess your image. Do you need the same online image as you currently have locally? A good example of two differing identities within one organisation is The Prudential Banking PLC with their online/telephone bank egg.com. The Egg brand was tremendously popular, fashionable and quickly amassed over 2 million customers before being split up and sold to various parties including BarclayCard. I really doubt whether the Pru would have seen such a successful business develop if they simply just launched the same services under the Prudential brand so this is really worth sitting down and giving some thought to. Also, consider your long term plans, are you considering disposing of your business in the future? Could the online brand be worth more if separated from the business of your local presence?
Once you have decided these factors you need to assess the product or service you are hoping to sell. Does it suit an online environment? Will competition be more fierce? Will there be a greater price pressure? What factors have led you to think that you can make a success of being online? Do you have any social media presence at the moment that you can tap into to publicise your online brand?
The move into a new online business needs to be treated as a journey you have never made before. It requires planning, a path needs to be decided and only when you are sure about how you will reach your destination should you start your journey. The journey can cost very little (or even nothing) if planned correctly - however, if you make a wrong turn at a key junction then the costs and impact can be alarming.
To be continued.....
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