|
|
Case study - The rise and rise of a modern business.
By Stuart Ayling
Exclusive to Marketing Nous
Recently I had the pleasure of speaking with Sharon Gillett and Andrew Wild from Brisbane based
e-JAZ Pty Ltd. Sharon has won numerous state and national awards over the last few years for their entrepreneurship and e-commerce initiatives.
Although e-JAZ specialises in internet based services that help businesses sell products internationally using the internet, this is no 'virtual' enterprise. In fact, one of the hats Sharon wears is manager for the
Gilletts Jewellers web site, a thriving online business that will break the $1million sales barrier this
year (2003). An impressive feat for a business that turned over $125,000 in 2001. Plus both Sharon and Andrew are very active in the e-business community running workshops and coordinating training sessions.
Sharon is a lawyer by training and had an unlikely start to her online business career. It was in 1999, whilst her parents were attending an overseas trade fair, that Sharon helped out with the running of the family jewellery store, located in Brisbane city.
A pilot project
During this time Andrew was commissioned to run a pilot project for Gilletts Jewellers. Andrews extensive web design and programming expertise was directed towards trying out the concept of selling jewellery on the internet. At the time the project was experimental, and initial sales results weren't encouraging. But that didn't deter Andrew.
For Sharon, one thing led to another, and what started as a hobby ended up being a vocation. She was hooked by online business.
In the early days of promoting their web site, Andrew admits they tried a number of marketing tactics that just didn't work for them. These included mass search engine submissions and creating 'doorway pages' using a popular web positioning software product.
They looked at traditional marketing activities but found it difficult to target the key audience they were aiming for. So they persevered to find the right solution.
One thing Andrew now regrets is not looking sooner at their return on investment from their online advertising. He has since developed an
evaluation system to monitor every online marketing tool they use and can quickly tell what is working.
Other online services
Through e-JAZ Sharon and Andrew have developed other online services. One is a nifty currency conversion tool called
JAZconvert. This information service allows visitors to your web site to view your product prices in their own currency, as well as the Australian price.
Whilst working on the original Gilletts project Andrew also created Search66, an Australian meta-search engine focused on Australian web content. With much development since then, Search66 now operates internationally and generates revenue through Pay Per Click advertising.
So what did the e-JAZ team have to tell NousNEWS?
Sharon and Andrew were very generous in discussing their business methods, and we'll look briefly at each of Gilletts.com.au and JAZconvert.
Firstly, for the Gilletts.com.au jewellery business...
On the meaning of marketing.
For Sharon and Andrew 'marketing' means employing a range of ebusiness strategies to stay ahead of the market. This includes tracking trends from customer enquiries and doing research via the internet on popular search terms and areas of interest for their customers. Their objective is to identify profitable niches, and specific products (for example wedding rings), where there is sufficient demand and where competitive threats are relatively low.
Pricing online.
In the 'early days' of ecommerce there was a perception that prices for products sold online would be substantially lower than through traditional retail outlets. However Sharon has found she can maintain the same prices for her products whether online or in their Brisbane store. "Price is not the main issue for jewellery," claims Sharon.
Part of the de-emphasis of online pricing is the design-it-yourself service offered through the Gilletts site. This effectively provides a custom-made service and avoids direct price comparisons.
Search engine optimisation.
Andrew says he has created "thousands of keyword specific pages" that target every conceivable key word a potential customer might search by. This includes misspellings and alternative descriptions such as wedding 'bands' (for America) versus wedding 'rings' (for Australia).
Content rich information pages for specific products also draws plenty of traffic onto the site. The information addresses problem issues for customers, isn't too "salesy", and helps to add credibility to their brand.
Even with all these highly optimised pages Andrew and Sharon admit there's still more to do. "We're at about 75-80% of our expectation here now that we know what can be done," says Sharon. The Gilletts web site attracts around 85,000 people per month.
Offline marketing.
Gilletts fully integrate their web site with their Brisbane store. They know that customers may visit the store to check out the physical products, only to order at a later date through the web site.
Being experienced retailers, they don't miss a trick when it comes to maximising store traffic. The shop windows house display cards that say "View more jewellery online at www.gilletts.com.au". This is especially effective with after-hours window shoppers in this prime CBD location.
If customers are not making a decision 'today', sales staff will refer the customer to the web site to buy later, or as a reminder so they can't forget what the item looks like. Sharon says the customer response to this approach has been "overwhelming".
Email newsletters.
Previously Gilletts offered their monthly newsletter only to web site customers. They have recently opened up their opt-in subscription to anyone. And because Gilletts repeat sales cycle can be quite long, up to 12 months, Sharon finds the newsletter a great way to keep in touch with customers over this time.
For the JAZconvert currency comparison service...
Andrew makes it clear that "Because this is a more complex business-to-business service, our main growth strategy is to create a network of strategic alliances through which the service will be marketed. We expect partners will include web design firms, ebusiness advisors and related service providers".
This is a scalable approach that enables Andrew to focus on running the business and further
development of JAZconvert.
Favourable media coverage adds authority to this young business, and Andrew says that "Winning industry and business awards certainly gives us the credibility to attract interest from potential partners".
In closing I asked Sharon and Andrew a few questions on the future.
Stuart:
What do you think are the most important marketing challenges facing businesses using the internet?
Sharon & Andrew:
Finding ways to drive new traffic to your web site. About 80% of people use search engines to find the products or services they are looking for on the internet. However, top search engine rankings are becoming increasing difficult to achieve. (eBIG offer seminars on this topic called the "7 steps to achieving top search engine rankings" - see link below). Pay-per-click advertising that allows a business to pay for top search engine positions is also becoming increasingly expensive.
Stuart:
And for somebody seeking to expand their business, or for someone just starting out, what would you recommend?
Sharon & Andrew:
Really it's the same answer for both situations.
1) Don't try to re-invent the wheel. Research what your competitors are doing and work out a way to differentiate your products and marketing strategies.
2) Learn from the experiences of others by talking to other business people. You need to hear the good and the bad experiences so you get a general understanding of what has worked and what hasn't. You can then tie that back to your business.
That is how we have grown our companies quickly. We are constantly networking and talking to people about their experiences. When you meet people simply ask them questions about their business and marketing. People like talking about themselves so you will generally find that they can be very open and helpful.
3) Attend seminars and workshops about marketing and e-business. eBIG (Electronic Business Interest Group) run a range of seminars and workshops on e-business internet issues including internet marketing.
Stuart:
Thanks Andrew and Sharon, it's been a pleasure speaking with you both.
Return to Article Library
|
