Black Hole eats Web Resources, claims Survey

The Web Benefits Survey, undertaken by the European Centre for Customer Strategies, claims that over half websites are little better than financial black holes into which money is poured, never to return. They generate scant revenue for their owners, and little value for their customers.

The majority of websites are an under performing drain on corporate resources. Over half of 465 companies surveyed have not analysed the cost/benefit equation. If they did do the sums, these companies would almost certainly be unimpressed with the bottom line. According to the findings, nearly 40% of the ROI-ignorant generate zero sales through the web while a further 36% report that web sales account for less than ten% of total turnover.

A small minority have interactive websites that enable companies to engage customers through content customisation, discussion forums or online surveys. Yet according to The Web Benefits Survey, almost 60% of respondents expect to generate more sales over two years through their websites, despite the fact that few are planning to introduce the web features and functionality that would make this seem feasible.

Findings include:
* Only 45% achieve a break even or better return on ROI: 55% do not make the calculation
* Two thirds generate sales through their websites - but only 11% drive half or more of their total revenue through this channel
* 55% are unable to capture and prospect customer details
* 40% do not track visitor traffic
* Less than 20% have a discussion forum, are able to conduct online surveys or allow visitors to customise content
* Most companies fail to take advantage of the web to get closer to their customers - under 15% of respondents make use of the web as part of a CRM programme.

Despite this generally bleak picture of achievement, the survey also has some encouraging news: you do not have to be a big spender to make money from the Web. Small budgets are just as capable as big budgets of generating good returns, even though this is a rare phenomenon across the sample as a whole.

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