On-line... But Missing the Mark for Building Corporate Image.
Most Fortune 500 Web Sites Are Falling Short of Their Potential,
Finds Lippincott & Margulies Study
New York, Sept. 8, 1998
Thousands of leading companies are boasting a Web address these days, but few are leveraging their Web presence to communicate a consistent and effective corporate identity. According to a recent study of nearly 250 Fortune 500 Web sites, most fail to create value for the user or to convey a consistent corporate message. Those that succeed do so by allowing customers to interact directly with the company through transactions or the exchange of information. Successful sites also use corporate branding elements consistently and regularly throughout their on-line outposts.
Corporate Web sites provide an enormous amount of information, but not all communicate a cohesive message about company image, notes Peter Geismar, partner and manager of Lippincott & Margulies' Interactive Media Group, which conducted the study. Of the sites surveyed, almost 100 percent provide in-depth corporate information, detailed descriptions of products and services, company news and press releases. Career opportunities are posted by 71 percent of the companies. Yet only 24 percent of the sites provided the ability for audiences to conduct any business directly with the company. In most cases, interactivity begins and ends with E-mail.
"Many of the corporate Web sites went up when it was suddenly imperative to test the waters of a new medium," says Geismar. "There was little understanding of how to utilize the medium effectively to communicate a company's brand image. Some second and third generation sites show more sophistication in using the Web as a direct conduit for communicating with various audiences—and especially for conveying a commitment to customer service."
Web Savvy Varies By Industry
Among the 238 companies surveyed, the industries that were using the Web most effectively were financial services, retail, telecommunications, airlines, banks, and mail/package/freight. Companies in these industries have begun to develop well-organized transactional sites that communicate a cohesive, strategic message to customers. They are offering traditional products and services directly to the on-line consumer, building a digital relationship that complements, and sometimes replaces, classic customer service. Companies selling intangible or semi-intangible goods and services—information, financial services, travel—have developed informative, transactional sites that are easy to navigate. Customers can get in, find the desired information, conduct their business and get out quickly.
"The value of a site's information and its ease-of-use communicate a real commitment to the needs of the customer—a critical message in these businesses," says Geismar. "Simple, logical sites that help the customer make a decision easily are the ones that do the best job of building their brands." "The airline industry provides some excellent examples of how the Web can be used to enhance a customer-oriented image," notes Geismar. "Airlines recognized that consumers want to be actively involved in researching cost and performance. Putting travel planning and ticketing systems at the consumer's direct disposal, and offering discounts for using these systems, enhance an airline's customer-focused image."
While retailers are rapidly developing sophisticated sites, companies selling classic consumer brands—soaps, cereals, canned goods—have generally been less successful at maximizing the potential of the Web to build corporate image. These companies are adept at using different tactics—recipes, nutritional information, handy cleaning tips—to engage audience interest and build awareness of a specific brand. But they fail to underscore key corporate messages like customer service orientation. "They can enhance corporate image—and customer relationships—by focusing more on one-to-one service issues," comments Geismar.
Computer companies are less savvy in designing Web sites that reinforce corporate image than might be expected. "We were surprised to find that most of these technology-focused companies devote their sites to providing huge quantities of product information and software updates," Geismar says. "The sites tended to be disorganized with very little corporate brand building going on—curious in industries like these where brand image can be an important competitive advantage."
The industries that have been the least successful at using the Web are classic "heavy" industries—chemicals, engineering and construction, metals, forest and papers, waste management—which are firmly rooted in using the Web for corporate information, mostly directed towards shareholders. "These industries have a hard time translating their core businesses to the Web environment," says Geismar. "There is a tremendous opportunity here to leverage their information on-line, especially on a business-to-business basis. Anecdotally, we believe this is starting to happen." Unexpectedly, petroleum companies often have the most sophisticated industrial sites, if not necessarily the most visually consistent. "Though considered a 'heavy' industry," says Geismar, "oil companies have developed a strong consumer understanding and some, such as Mobil, have even begun to offer bill payment through their sites. This starts to take the relationship with the customer beyond the gas pump." Other industries that have the least effective Web sites are wholesalers and tobacco and alcohol companies.
Transactions on the Rise
Companies builds stronger sites and a stronger relationship with the customer, according to Geismar. Serious users of the Web view it as a tool to conduct business, and we're noticing a slow but steady increase in the willingness of Fortune 500 companies to build a more engaging relationship with customers," he says. "Surfers are a large audience right now, but in the long-term, added value lies in transactions." Of the 24 percent of Web sites that had sales or information exchange capabilities, 59 percent provided the ability to purchase products on-line, 41 percent were directly selling services, 20 percent were providing credit card applications and six percent were selling information. Geismar anticipates that transactions will increasingly become the central focus of the on-line experience.
Building A Corporate Web Image
Projecting a customer-focused image is critical to a company's brand building strategy on the Web. Geismar offers several tactical tips to support this focus:
- Emphasize clear, direct information and simple graphics; marketing language and large graphic files impede the customers' ability to find what they need.
- Make sure both your corporate identity system and site navigation are consistent across all pages.
- Include different means of navigation at the top level of the site. People look for information in different ways and become frustrated when they cannot access the appropriate search tool.
- Make sure that all links work and that E-mail is answered in a timely manner. Slow response—or no response—is a sure turn-off for customers.
- Don't promise what can't be delivered. If an on-line service has been promoted, don't simply provide a fax form or phone number.
According to Geismar, Lippincott & Margulies will update the study on an ongoing basis to keep pace with the growing number of companies competing for the Web audience. "As companies realize the immediate, global opportunities for reaching people directly via the Internet, they are going to increasingly focus on how their identity and image are being conveyed in cyberspace."
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