From:

Phillip R. Nakata

CTO twice – IBM (Sales Automation, Mobility, Internet Architecture, Commerce, Portals)
CSC – Principal: Strategy, Finance, Enterprise B2B Commerce, Integration, Portals           
Residing in Rhododendron, OR, Phone 503-622-1332 (home) or 503-329-3689 (cell)

To: Local Businesses
Date: Originally created December 23, 2002, updated 2006
Re e-Business for Small to Medium business.. follows directly
Building 'Expert' Business Sites - Your 24X7 Sales Guide & Customer Communications
Internet Commerce made simple - Products, Vendor/Merchant 'stories', and Transactions

 

 

My name is Phillip R. Nakata, and I’m one of the original industry and technology architects of the Internet, sales automation, wireless, and 'e-Business' (IBM, Computer Sciences Corporation, Spectrum, Reuters).  I’ve been building business markets and applications for corporate business since 1986, and a leader of Internet markets and technologies since 1994.  

Until just a few years ago however, the complexity, costs, and  the ability to best leverage the Internet for business, has been primarily reserved for BIG business.  Everyone else was relegated to using web sites for establishing visibility… a reference marker or ‘digital signpost’, similar to a fancy “Yellow Page” ad…. At best stimulating interest…. Describing the services offered and a few key products/services… But not driving measurable business benefit…. And certainly not providing the same image as a visit or call to the business.

The last time I left IBM, I was evangelizing JAVA, Open Source and their potential for Internet corporate business… that IBM made their “mantra” after my departure.  In response, I went to work as Business Principal with their biggest competitor (National Business to Business for Computer Science Corporation),  proving the plans and technology with real businesses, and driving over $15 Million, successfully converting brick and mortar businesses to the Net..

And over the last few years, while building sophisticated integrations for corporate business, I’ve supported the growth of new very LOW COST architectures for the Small to Medium businesses….. building a number of online small businesses (also contributing editor/marketer to over 150 Internet industry newsletters) for myself as well a a number of local Oregon companies.

This time I’ve left IBM and am doing something very different…  as I know the technology has matured to the point where my additional  business and technology expertise can now be leveraged to offer small to medium sized business markets a significant and measurable benefit.   I helped build much of the technologies used today  (From security and credit card transactions…. To knowing how the search engines work and how to manipulate them… from sophisticated and complex midrange/mainframe commerce servers integrating to procurement/supply-chains …. To simple, easy to change and maintain commerce that can run on any low cost server)

Please feel free to contact me at your earliest convenience.  I’m consulting between California and Washington, but as  you’re a local neighborhood business for me, I’ll make sure to give you the best personal attention to make you a showcase.  It’s fastest to reach me on my cell, before my schedule fills again at… (503) 329-3689 – or "Skype me" - Username: phillip-r-nakata

Best Regards,

Phillip R. Nakata

P.S.  I’ve already started, and this introduction should include a number of local, well-respected testimonials/referrals… from very different types of businesses and points of view…. From service-based businesses that only service local customers…..  to products and services whose audience could be regional, national or international.  Please consider taking a few moments and see the results others have realized….

Testimonials: (click on a link)

Sandy Chiropractic – Serving Sandy, Boring, Damascus, Escatada, and Welches

Oregon Rustics – Oregon Based Furniture Manufacturer w/factory outlet in Sandy


 

Business Web Sites for Small-Medium Businesses

The two types of Internet Business sites I build:

  1. Expert Business Sites - Your 24 X 7 Sales/Guide & Customer Channel - Your Competitive Edge
  2. Internet Commerce – (unique) Products, Vendor/Merchant ‘Stories, & Transactions

 


 

- Expert Business Sites - 24 X 7 Sales/Guide & Customer Channel
..."Your Competitive Edge"

These sites are a challenge because of the “image” you are trying to build. 

If the customers are local, there is little place for promoting to the Internet audience.  Instead the Business web site becomes the 24-hour a day sale spokesperson, referenced by every other form of advertising the business does…. Business cards, stationery, yellow page ads, flyers-mailings, newsletters, etc.  There is no media less expensive where you can:

    • Provide all the information (customer’s product/service standard questions before they buy…. Quality, experience, policies, competitive, guarantees, costs ) a prospect asks (either openly or to themselves) before they decide to do business with you
    • Expert image (experience, skills, philosophies/methodologies, samples of work or methods, and/or …free “expert” advice)
    • Get direct requests and other feedback from prospects and customers (forms)
    • Build a new subscriber channel.  In Internet marketing, the majority of new buyers are subscribers to a business’s opt-in mailing
    • Easily leverage new business opportunities:  If you currently offer ancillary / complementary products or services for your customers, more as a helpful “convenience” than a business…. This is the way to give it the attention it deserves to leverage it’s potential for all parties…

     

    • **Offer a 24 X 7 Customer Communications "channel": The key objective of an 'expert' site should be get the viewer to want to take the next action step… ask an business-generating question, schedule a visit, call or buy now. As a result, your directed forms need to invite and promote real business action - this is far much more effective than email links.

The sites typically build in 1-1-3 days, depending on how many bits and pieces can be accessed from Internet research.  It starts with a design session and the owner “expert” interview, plus some digital camera shots, scan-able materials from the business, followed by a few hours researching both competitive sites, and sites offering extensive ‘information’ in the customers’ industry or type of business. 

Key expert image-building content is developed next…. Typically including

  • Owner-Company Experts/Expertise:  Background, Community affiliations & commitments, skills, expertise, methodologies (practice processes), Customer Support, philosophies, Interests
  • Frequently Asked Questions:  Any and all main questions that prospects ask directly or indirectly about before making a purchase….. what, how, where, when, why’s, including policies, and guarantees*
  • Free Expert Insight, Knowledge, or a Glimpse of the work:  In the same way a well published author gets high-paid speaking engagements…. We’re publishing, but at minimal costs on the Net.  A ‘Creative’ is developed, using the snapshots taken, pictures and text from the Net, and the client interview… to “Craft” an “Expert” web page.  This establishes and further builds the image of the expertise (quality, dependability, etc.) offered by association….. This ranges from:

         

        1. The 10 things you should know before… 
        2. Self-Health Checklist
        3. A few secrets from…. (words of wisdom)…
        4. Insights… so you can appreciate….
        5. The guide to….

         

  • Testimonials:  These are some of the most powerful image and selling tools ever.  Just like the strength of word of mouth advertising,,, ........................2-3 testimonials are very powerful

Key communication forms and channels include:

  • Setting appointments,
  • Send a message to the business's pager now (most alphanumeric pagers have a linked Internet email address… and most numeric pager have a web page that can send a page - and be encoded from their CGI directly into your web business site (see mine on http://ebizguru.netfirms.com)
  • Offering bulk service program discounts (pre-paid for routine services)
  • Offering targeted customer support,
  • Offering a a newsletter channel,
  • Getting the details for a custom request
  • Providing a downloadable expert reference guide (e-Book, easily assembled with simple tools today) linked back to your site (to keep things current for the viewer, as well as provide the business a very effective marketing channel)… it feels like software though it's really an encapsulated website and is far more effective. The 'sales' part of the guide is where you place the reference of "for more information, contact …..XXXX at YYYY (with a directed built in form"
    • "The Ten things you should know…."
    • The Guide to ….. (either in your field/industry…. Or 'Presented Courtesy of….')

     

Construction of the web site is the easy part.  The biggest challenge afterwards, needed to fully leverage the site’s potential, is to orchestrate the other related advertising… stationery, letterhead, flyers-mailers, yellow page ads… etc.


 

Internet Commerce” – (unique) Products, Vendor/Merchant ‘Stories, & Transactions

The Internet Commerce sites I elect to build are almost always an extension of the Expert Business sites, in that they highlight many of the same concepts, adding to, and ‘extending’ commerce.  Go to any brick and mortar business, or competitive Internet commerce in your industry, and you’ll find in both merchants offering wide or narrow selections, the ‘sales stories’, so critical to building the same positive ‘image’ of the ‘value’ of the merchandise and the reliability of the merchant.

“The Big Difference” -- What most “Internet Commerce” consultants miss is listening to the way the merchants sell in their storefronts.  They don’t just offer product pictures with prices and basic descriptions…. They tell the ‘stories’ about the product… the story of the artist who built it… or it’s history… or the reliability of the company that produced it… or it’s “ranking” in its product class… or some type of comparison (vs. a discount or premium alternative)…  or ROI…  or “how” the buyer will ‘feel’ about it (rewards of the purchase).  How this “selling” is designed into the system, along with the appropriate promotion, will determine the success of the site for commerce.  These features are critical, but are typically built into the system in a staged fashion.

(Note: For all resale products, the vendor's and merchant's (and gallery owner's, whatever) comments are extremely powerful. These additional selling 'cues' give the prospectS/customers additional confidence in their purchase… from "this is very popular"… to "Personally, I've seen….. or This is the only XXX I recommend" to some other 'VALUE INSIGHT' like "this artist/model is currently featured at…", AND incorporated with the 'Expert Site approach', very believable. Another equally powerful addition to the commerce site in general, and specific targeted products and services, is TESTIMONIALS.

These sites typically take 4 to 7 full days to complete, and there is more work from both parties required (depending on the number of products, suppliers, and features required, it can take longer). While the business expert stories are being gathered and created, the client typically is both organizing the selection of the (A) Items to be made for sale (including at minimum for each item, the product name, id (or SN), minimum quantity to order per item, description, size, weight (optional),  price, shipping cost per item, and options per each item – color, shapes, etc),  (B) Graphics for each item – Catalogs, online manufacturer/distributor product sites, or Photographs of each item, (C) Establishing ‘Standard’ business policies (Taxes for in-state purchase, Order Minimum, Shipping Minimum, Disclaimers, Refund Policies, Customer Support, How to Accept Checks On-line, Which Cards to Accept, What transaction gateways to support, etc.), and (D) Finalizing the business details of their transaction gateway (how to receive credit cards) with the appropriate agencies.

Getting Money Fast:  The biggest shock to merchants on the west coast is that typically 1) A secondary merchant account is often required, that costs more to apply for, and has an average $0.40 per transaction charge plus 2.6 – 3.0 % charge to the merchant per transaction (often 2 % higher than their existing in-store rate, or 1 % higher than the phone-in/terminal rate).  By comparison, third-party transaction gateways (Paypal, Linkpoint, WorldPay, Authorize.Net, etc.) rates can be as low as $0.20 per transaction and 2.3% for each transaction.  Most merchants are surprised to find that On-line Checks are also very easy to accept, and can be cashed immediately, even without a merchant account.

Fast StartUp:  During the first 2-3 days, I tend to produce the ‘selling stories’ and the business site’s features and navigation, while checking on the progress the merchant is making both getting the product information and graphics ready, as well as finalizing their merchant account mechanics.  Often it is more expeditious and cost effective to use the third-party transaction gateway and on-line check processing to get started.

The biggest technical part of the project is scanning, editing (hand-cleaning up the graphics), organizing the graphics, and building individual order ‘options’ and descriptions for each item.  On an average hundred items spread over 5-7 categories, it might take me two days to clean up the graphics and only one day to create the order system.

Transactions:  My LOW cost business web sites offer multiple ways to process transactions… including:

·   Third Party Transactions:  Starting at $0.20 per transactions plus 2.3% of the sale, credit card transactions are supported for ....VISA, MC, Discover, American Express and Bravo from LinkPoint, Authorize.Net, WorldPay or Paypal

·   The client’s Merchant Service Account – Note that proper interfacing typically requires a separate Merchant Service account, ....plus additional fees and often higher per transaction base charges… ex: WM at $0.40 per transaction and 2.6% of each ....transaction.

·    An Encrypted Message with all product details and the credit card number will only be exposed to the vendor.  This is a ...proprietary method I developed to insure better security than current on-line credit card processing – as the client credit card is ...NEVER exposed to the Internet. Verified with a recorded conversation, fax, or written authorization, these should be submitted ...under a Merchant Account as a “phone-in” order.

·   Accept Checks – Anyone can now accept “pay-by-phone” checks from a customer’s checking account.  Validated  upon a ...recorded conversation, fax, or written authorization, you can print checks using the same “font” as checks and deposit them ...immediately, even without a merchant account!.  It is thus recommended to collect the bank phone number for funds verification ...prior to submission.

Promotion:

  • Most web designers produce the web site, and do not offer extensive services to promote the site.  Almost all offer basic web search engine promotion…. But this can take months to actually be acted upon after submission.  Even so, most focus on trying to position key pages based on keyword (Metatag) combinations.
  • To get the most out of this type of promotion, you need to understand the ‘ranking’ of word combinations for each engine (they differ), and how the search engines differentiate between “like’ sites.  Expertise in researching each engines current state, plus how to influence the engines to ‘rank’ the site amongst competitors wins the game.
  • Other faster marketing channels require either:
    • Payout:  You can literally pay your way to the top … responses vary depending on how generic the mix of terms are
    • Links – to link and banner exchanges… results vary, based on visibility and industry affinity in the links
    • Industry Newsgroups and Discussion Threads:  these require regular participation as a group member or contributing industry expert… but can pinpoint interests
    • Online Newsletters/Editors:  This is one of my most effective channels… where the best relationship is having the other editors promote your wares or services.  (I’m a regular contributing editor to over 250 online ezines)
    • Hit Exchanges:  In this channel, web site promoters exchange “views” of other site owners in exchange for ‘visits” to their sites.  For visual products that can produce immediate response, this is a great channel.  For most, it helps to build site stats, and great opportunities to build affiliate sales channels
    • Opt-in mailers & Safelists:  Most are not very effective for – except for private solo emailings in paid subscriber only safelists
    • Affiliate “Referral” Sales:  This is one of most effective forms of marketing, and can be initiated with a service like “Linkshare” (requiring a full-service Internet Merchant Account) or by hosting your own (ex:  Affiliatemaster).  This also requires a Merchant Service Account

 

Recent Reference Sites

Sandy Chiropractic:  Learn about chiropractics… do a Chiropractic “Self-Checkup”, set an appointment, or save on a regular maintenance schedule, over 20 years established … http://www.sandychiropractic.com

Oregon Rustics:  A family owned business, originally in the lumber business, now producing a line of nationally distributed high quality ‘rustic’ finished furniture, with a factory store in Sandy.  Their national site now offers a new ‘accessories’ line.  At http://www.oregonrustics.com

* Note:  I host over 30 small business web sites personally.  Other recent sites under development include (i) Fishboneglass – http://www.fishboneglass.com (artist) and (ii) the Look AHead Shop – http://www.lookaheadshop.com (eclectic glass & art)