Several factors prevent various online businesses from making a profit and can lead to their eventual downfall. Some of these factors range from certain phenomena such as market competition to more complex factors like lack of knowledge required for effective online marketing.
Several studies have revealed that 90% of all online businesses fail within their first four months of operation. This makes it necessary for businesses that wish to launch online to ask questions concerning what can be done to achieve long-term success. This write-up is, therefore, meant to outline the three factors which lead to the failure of most online businesses. This would help startups and businesses at various stages of growth to keep afloat and ensure a steady path to success.
Lack of defined business identity
Before going ahead with starting an online business, certain basic questions should be answered:
- What are the long-term goals of the business?
- Who would make up the customer base?
- What products would the business offer?
- How would the products benefit the market?
Businesses that fail to answer the above questions do not go very far.
Failure to implement SEO strategies
Search engine optimization is the crucial component of any modern website. It ensures that a website ranks highly in search engine results. Businesses that are new to online marketing need to spend time learning as much as possible about SEO or should consider consulting an SEO firm. It would be unwise to ignore SEO with the idea that simply having a beautiful website with really great products is enough to help you rank highly in searches.
Lack of social media presence
In modern times, a common and effective marketing method is the use of social media. Businesses are able to attract new customers and entice them to make a purchase through keying into social media sites like Twitter, LinkedIn, Facebook, and Pinterest.
However, online businesses should conduct surveys to help them determine how their customers actually go about seeking out information. Social media should be used only as a small part of a broader marketing plan, rather than being relied on as the only avenue for customer attraction