You Talk. We Listen.

Summary of Results from the 2006 ValueWeb eCommerce Survey

In 2005, the first annual ValueWeb eCommerce survey was conducted. Over 1,000 ValueWeb customers responded, and we gathered some really valuable information and insights.

This year, we took it a step further. We first surveyed non ValueWeb customers fitting a similar profile, then we posed the same questions to our ValueWeb community. We got a great response from both groups—about 1,000 from each—and saw some interesting trends. Perhaps just as intriguing to observe was a surprising lack of awareness regarding a few key issues that could affect eCommerce users in a big way.

Some conclusions and observations follow. For the most part, last year’s ValueWeb customer responses bear a striking similarity to this year’s, so we won’t talk much about that. But wherever it offered some interesting contrast, we will compare your answers this year with those of non-ValueWeb users.

Keeping it Small but Making Big Money
The ValueWeb community is comprised of mostly small (or micro) businesses. The vast majority (79%) of responders operate businesses with 10 or fewer employees. But you’re not messing around when it comes to revenues. You’re making real money. A full 45% generate between $100,000 and $5 million, and 2% generate over $100 million!

Not Just a Hobby
With those numbers, it’s no surprise that we’re not talking about casual pastimes, but rather Real Grown-Up Businesses. Within the ValueWeb community, 67% are full-time enterprises (spending at least 31 hours per week to the business.) Conversely, a majority (83%) devote 10 or fewer hours per week to their websites, indicating that most business owners don’t want to or don’t have time to devote to online marketing. Hopefully that’s where you turn to us for help.

At Your Service
At 41%, the largest proportion of responders is in Service Businesses. This includes, but is not limited to, Consulting, Legal Services, Architecture, Marketing, Training, Real Estate, Accounting and Financial Services. Only 3% identified themselves a pure play "eCommerce," but another 12% fall into Retail and Sales, which may also involve some degree of online transactions. Nonetheless, roughly a third of respondents generate at least some sales entirely online, mostly through their own Webstores. Comparatively, non-ValueWeb customers were comprised of 54% Service Businesses, with only 1% defining themselves as eCommerce.

A Sunny Forecast
We were encouraged to see that ValueWeb customers demonstrate a high degree of industry optimism. A full 89% estimated their holiday season sales would be the same or better than last year. Non-ValueWeb customers were marginally less optimistic, with fewer responders selecting "Better than…" and more opting for "About the same…"

Industry Regulations Awareness (or lack thereof!)
We asked you if you were aware of the recent regulations and requirements imposed by credit card processing services, such as the VISA/MasterCard PCI (Payment Card Industry) Data Security Standards. What we discovered surprised us. A full 67% were unaware of the new PCI Standards. With such a high percentage of eCommerce adopters among our ValueWeb community, this presents a true imperative for us. We must provide our customer base with even more information, and give you even more solutions that are easier than ever to implement. Maybe the typical Value Web customer really wants a turnkey solution for their eCommerce operations and doesn’t want to worry about following new regulations, implementing new standards, etc. This is where we know we can help, so we’ll be looking at that in the coming quarter.

Putting Your Money Where Your Mouth Is
Most ValueWeb customers are quite conservative in their commitment to online marketing. Most spend $1,000 or less per year on online marketing. But then almost 29% spend up to $10,000. As you might expect, non-ValueWeb customers definitely spend even less, with the majority spending under $1,000, and only 13% spending $1,000 to $10,000 annually.

The adoption rate of various online advertising media is correspondingly low among the ValueWeb community. Nearly 80% of responders stated they are not likely to use Podcasting or Video Ads. On the positive side, 50% of responders said they are likely to utilize some sort of Online Public Relations, and 61% are inclined toward Search Engine Marketing (SEO.) Pay per Click (PPC) advertising is surprisingly underrated, with 83% not likely to employ. Only 14% of ValueWeb customers currently use PPC advertising, with another 4% expecting to do so in the future. But among non-ValueWeb users, only 5% use PPC. Not surprisingly, non-ValueWeb customers skew even lower on the adoption and predisposition toward all online advertising media vehicles.

Roadblocks
When it comes to overall knowledge of online marketing technologies and effectiveness, most ValueWeb customers see themselves as moderately competent, but they show much more confidence than the average small business owner. Still, lack of knowledge and skill is a big factor in deterring ValueWeb customers from implementing online marketing programs. They also cited cost and time investment as barriers. Interestingly, 11% said they thought it will be difficult to track results. While this is a small percentage, it tells us where we have been falling short of educating our client base.

What Keeps You Up at Night?
Is it true that the more you know, the more you have to fear? Well, everyone agrees that “Ignorance is Bliss”… and ValueWeb customers know more than the average bear. When queried about various concerns relating to eCommerce—Click Fraud, Fraudulent Online Orders, Credit Card Security, Hacking, Intellectual Property Violation—we saw fairly predictable responses. You express concern, but not alarm. But we observed a higher degree of concern among ValueWeb customers than among non-ValueWeb customers, across the board. So you clearly know enough to know what you should be worried about.

Recap
We confirmed much of what we already knew about you. We knew the ValueWeb community was a force to be reckoned with. You’re optimistic, entrepreneurial, independent, knowledgeable, adventurous and productive. You’re willing to try something new, but you know to be cautious. You show up on time, you pay attention and you give it your all. But you know when to call in the pinch hitter, and you need to have a team of resources you can trust.

And we gained some insight into some of the things you need from us as a resource. We need to continue to educate you, be your guide and counselor, and make new solutions available as we discover the challenges you’re up against.

Okay. So we have a good idea about what we need to do. We’re ready for 2007 and excited about the opportunities to help your business grow.