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Top Reasons Online Businesses Fail

Top Reasons Online Businesses Fail

Most online business owners find selling products or services online convenient as the operating cost are very less. Yet, many business startups close their business abruptly in few months because they are unable to draw attention to customers and stay in the competitive market.

Running an online business has its benefits but it also comes with its own set of challenges. Starting an online business begins with filling a need and building credibility, but the factors that go into making your online business successful don’t stop there.

There are plenty of ways to start an online business and turn your latest masterpiece into a source of revenue.  A study has shown that most online businesses crash halfway due to the following points.

–  Online business owners ignoring customer service

– Not having an outstanding Logo

– Poor planning and lack of Capital/ fund

– Poor online marketing performance

– Giving away too much and having nothing in return.

The majority of online business owners fail largely due to the mistakes that seem obvious in hindsight. Online business owners have to work their way to clear the hurdles. Put in little effort now and you’ll be reaping the rewards for months and years to come.

Here Are 5 Reasons Why Most Online Businesses Fail

Reason #01: Ignoring customer service

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Customers are people who are likely to return to your website and recommend others if they have a good experience. 79 %of customers will listen to the input of other consumers online more than any other source. Some customers check feedback from other customers, and not the business product description before making a purchase.

Offer multiple channels of communication by reaching out or getting in touch with customers. This will make it easier for them to send in their feedback or queries. Prioritize customer services include skills such as patience, empathy and clear communication.

By understanding your customers, you get to strengthen brand loyalty and trigger positive words of recommendation for your products and services. Check your review and reach out to customers who aren’t happy about their experience. A successful online business keeps its eyes on the interest of the consumers.

5 Ways to Make Customers and grow sales online

  • Make them feel uniquely special by addressing their needs and replying to their questions. Don’t leave their questions or comments untended.
  • Offer lots of information. Know the first-hand description of what your product is offering and how it can benefit the consumers. Always be ready to dish out information when necessary. This can boost the customer’s buying zeal and persuade them to make a purchase.
  • Involve them in decision making. Everyone wants to take part in something, particularly something beneficial. For your online business to grow, you must take interest in getting feedback from customers. Reaching out to them will help you know their thoughts on a particular product or service and look for ways to quickly resolve any negative issue.
  • Make realistic promises. It’s not only about telling customers what they want to hear. What you tell them must correspond with what your products or services can provide. Have you ever wondered how disappointed a customer will feel if they find out that what you said about your product isn’t true? They will never return and will also discourage others from making purchases. If there is one thing about customers, once they trust you. They boldly stand up for your product or brand whenever they find themselves.
  • Provide a high level of services. Since the primary goal of your online business is to attract customers and make a high sale. Then offer quality products and stay true to your core values.

Reason #02:  Not having an outstanding Logo

Keep the look of your online business fresh, impressive and relevant.

A logo design can help you build your brand identity. People will only keep what they like in memory. This is also related to your logo design. Getting a logo isn’t about the drawing, make sure it sticks into the memory of those who have seen it.  If people like your Logo, they will keep it in mind and whenever they see it, it will always remind them of your business.

Brand yourself in a way that puts your best foot forward and engages the customers.

Reason #03: Poor planning and Lack of capital

Online business owners often struggle to keep their finances uptight. They didn’t save enough, they didn’t plan enough. As a result, they end up running out of money and ideas in the long run.

Be always prepared when it comes to capital. It’s good to be hopeful, but not always when it comes to money. There’s a chance your online business will run out of money, try to get more before it does. Create a financial plan and always plan. You must be well aware of the strengths and weaknesses of your competition to make well-informed decisions and strategically plan your marketing activities.

Make research and develop a complete business plan.

Reason #04: Poor online marketing performance

Your online business must be visible for it to thrive. An online business needs to be visible and this requires marketing that delivers. According to statistics, 81% of internet users research products online before making a purchase and 80% have used the internet to make a purchase. SEO, social media marketing channels are all crucial channels for your business to thrive. Since the world is going digital, you shouldn’t be left behind.

If people don’t know you exist, there is no way they will know what your business is about or how your product or services can meet their needs. Change tactics if what you are doing at the moment isn’t progressing or yielding results.

SEO or any other marketing channels will strategically place your business in front of people. Including those who don’t know your business existed. With this, you end up making more sales and increasing your customer base.

Reason #05: Giving away too much and getting nothing in return

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Everyone loves free things. Customers won’t reject if you decide to give away some products and some might even suggest that you do give away. But you have to be careful while doing this because they seem to lose nothing.

Giving away too much is gradually sending your online business into the sea and you may not be able to control it or stop it until your business is a shipwreck.

Although, offering giveaways can boost your customer base. So, rather than offering them products every time, you can also think of something useful and tangible such as a recipe, free ebook, instructions, webinar, guide or checklist and so on in exchange for the customer’s email address.

In conclusion

Do the needful. What you don’t want, you avoid. Not just by the words of the mouth but by backing up those words with positive actions. Keeping an online business from failing can be tasking, but your online business will stand in the long run after most businesses you know must have failed.

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