Adding Clicks to Your Bricks: 2000 Registry Makeover Series, Part III

By Michelle Moran

SEPTEMBER 01, 2000 -- Web Affirmation

Online consumer purchases continued to build in 1999 as business-to-consumer e-commerce climbed to $33.1 billion, according to a study conducted by The Boston Consulting Group for Shop.org, a trade association for online retailers.

Based on data from 412 online retailers, the study provides a complete picture of actual online retail revenues for 1999. Total 1999 online business-to-consumer revenues across all categories grew 120 percent, representing 1.4 percent of all retail sales. This year, the market is expected to grow 85 percent and surpass $61 billion in revenues, an obvious indication that specialty retailers will have to become involved in the Internet game. Those multichannel and offline-only retailers who don't get involved may soon have to consider reducing the number or size of their physical outlets to compensate for the loss in sales.

"While financial markets for online stocks are in turmoil, the underlying growth of the online retailing industry continues unabated," said David Pecaut, senior vice president and global co-leader of The Boston Consulting Group's E-Commerce Practice. "Online retailing is here to stay and will continue to gain significant share in 2000."

But how do you get involved in the game? And at what level are you qualified to enter? Are you in the Big Leagues or do you want to start out on a Triple A team? We'll take a look at how to get started with a Web presence in this, our third installment, of our gift registry experiment that is taking the Ames, Iowa-based Cook's Emporium into the 21 century.



Status Report

In February, owner Margaret Junkhan and her Cook's Emporium team signed on as our test case for bringing their gift registry into the computer age. Until early May, Cook's gift registry system consisted of a loose-leaf notebook kept under the register. Backup was kept in binders in the back office.

All that changed this year. MarCole Enterprises Inc., a Walnut Creek, Calif.-based interactive technology provider, got Junkhan wired to a new computer system complete with a scanning gun and Gift RegistryWorks software.

"It is so wonderful," said Junkhan. "I personally have not learned how to do every little bitty thing on the computer. I have to ask some of the more technologically aware people about certain things, but I can find the bridal registries when people come in and ask for them, and I can print them out and show guests the merchandise."

Initially, The Gourmet Retailer timeline estimated that during the months of March through May, Cook's employees would become well versed in using the new registry. Instead, the owner, manager, and employees were just becoming familiar with their new registry in May. The delay in getting the system running pushed back our timeline for Cook's entry into the virtual world. And despite their current comfort with the computer and registry system, Cook's was still not quite ready to jump into creating a Web presence in July. But they were ready to talk about it and research it. And here's what they discovered.



Where To Begin?

When considering what level of presence to establish online, Internet experts suggested Cook's begin slowly to educate themselves and discover the options available.

"You have essentially two options: you can hire a Web development company to create your own Web site, or associate with one or more of the aggregators out there," said Stephen Cunningham, CEO of Internet Gift Registries which owns WeddingNetwork.com. "We would encourage any retailer to have a Web presence any way they can. It's an extremely important method for communicating your message."

WeddingNetwork.com is a full-service gift registry; it includes a catalog of online retailers that allows engaged couples to create a personalized database of gift items. The selection of online retailers includes: Sur La Table, Peppercorn, Murphy's Department Store, Crate & Barrel, and Restoration Hardware.

Establishing a Web presence requires a firm financial commitment that Cunningham would not disclose for competitive reasons, but he did say he believes the minimum first step for Cook's would be to begin with at least three pages designed by a local Web master. After that target is reached, Cunningham suggests considering developing an e-commerce presence through sites such as WeddingNetwork.com.

"Those people who exist because they are the only game in town are now under siege because of the Internet. For those that offer a creative product mix, I think the Internet is a continuing opportunity," Cunningham said. "In some ways, going on the Internet is a bit like opening another store. No matter how enthusiastic you are, there are moments in the planning and preparation process that create knots in your stomach. The Internet probably triggers some of that same reaction. Nevertheless, I don't really see retailers as having a choice. There's just too much competition and too many choices for consumers. Customer satisfaction will dictate that you have an Internet presence. Consumers expect you to have it."

Junkhan perceives the consumer demand and is firmly resolved to get into the virtual landscape, but she was not sure where to begin.

"I am so unknowledgeable about this stuff. I don't know where to begin or who I should talk to. You tell me I need a Web master and I say 'okay,' but I don't know what that is, just that I need one," she said. "Since I don't know about it, I don't even have an idea of where to start with a budget."



Hooking Up

Establishing a presence for Cook's Emporium on the World Wide Web had to in computer terminology be approached byte by byte.

The first byte of the project came in determining whether to dive in all at once or simply test the waters. Junkhan's reaction to a range of prices for services made the path a simple choice. When she discovered that an immediate connection through a portal gift registry service could cost between $5,000 and $10,000, Junkhan opted for first establishing Cook's own Web presence with e-mail capabilities, and a listing of the store's 800 number, the store's history, the cooking school schedule, and gift registry services. No online connection for purchases would be established at the onset.

Junkhan was comfortable with a $500 budget for Web design, but said she wasn't ready at this point to earmark thousands of dollars on her new virtual store.

After contacting local businesses and the Ames Chamber of Commerce, two Internet Service Providers were recommended: netINS and Dodgenet. Junkhan took initial steps toward a connection when she installed the computer system in April.

"I installed a second phone line," she said. "That's about all I knew."

With recommendations in hand, Junkhan and store manager Vicky Flaws began to review costs and options. They also began to look at other local businesses that maintain Web sites and e-mailed them to ask who designed their sites and who hosted them.

"We need to do this. We need to get in the modern world," Junkhan said. "We can't sit here and wait for people to come to us. The Internet is like taking your brick-and-mortar store and putting it out there to reach people you never would otherwise. Your ability to expand your customer base is almost unlimited. I'm really excited."

Since the cost of hosting Web sites varies quite a bit, one of the most important factors to consider is customer satisfaction. So Junkhan was determined to ask around town. Web site storage is usually provided by the megabyte; one place might charge $25 a month for 5 megabytes and $10 for each additional one. Another might charge $50 for the same amount of space.

Another important cost element is hidden fees for setup or technical adjustments. Flaws found out that netINS, which hosts the local Chamber of Commerce site, offered an enhanced showcase package which comfortably fit the first step in their project. The package price started at $25 a month and included e-mail forwarding, the ability to use forms, CGI programs and Java, domain name aliasing, and a choice of access options on a 25-megabyte space.

The Master

After deciding that the first phase of their project would be to connect to the Internet and design their own Web site with a designer's assistance, Junkhan and Flaws began shopping again.

Next in the process was to select a Web master to create their site. Flaws and Junkhan went back to the same resource for recommendations. After interviewing a few finalists, they selected a designer who spoke to them in plain English.

Their Web designer, John Holst of Fort Dodge, Iowa-based Page Weavers, said, "I like working with people I know and who I am comfortable with, so I always suggest to people that if their neighbor or another business has a site they like, ask them who did it."

Good Web site design begins with a good plan. It doesn't have to be complicated. In fact, Holst believes simple is better. Holst said he'll begin his work with Cook's by asking them to think of creating a printed brochure.

The first step Flaws and Junkhan had to take was making a list of the information they wanted included on the site. Then an outline was made of the list to organize the information. This outline then became the basic structure of the site and generally speaking, each main item in the outline will eventually become a different page on the Web site.

"What we want to project on our Web site is what we actually have here in our brick-and-mortar store," Junkhan said. "After talking with John, I feel more confident. First of all, he's from this area and, while he's not in Ames, he's easily accessible and knows our market."

Junkhan learned lots of Web-speak after only one conversation with Holst. She explained, "There are so many acronyms, it's almost like a foreign language. I now know that ISP stands for Internet Service Provider. I also learned what virtual domain means."

Junkhan determined after her first meeting with Holst that she wanted to create her own virtual domain (Web address) and create a site with at least three pages that included product photography.

"The virtual domain will give us a more definite presence on the Web rather than being tagged on to a server's address. For the difference in price, I decided that's the way to go," she said. "John is also going to provide us with an order form. Customers can print this form out on their own and fax, mail, or e-mail it to us and then we can call them. I still have concerns about security issues when sending credit card information on the Internet, so I prefer to do it this way."

Once Flaws and Junkhan completed their assignment, Holst said he could begin designing the site. He estimated the design cost to be approximately $500. The cost for maintaining the site would be completed on an as-needed basis. Holst does not charge a monthly maintenance fee; instead, he bills maintenance out at the time of service.

Online Registry

While Cook's continues to pursue its Web site development, thoughts of e-commerce and online gift registry services are dancing in the store. Services such as WeddingNetwork.com or MarCole's Web RegistryWorks program will be able to take Cook's Emporium to the next level of online registry, but Junkhan's focus remains centered on the Web page design first.

Once Junkhan is ready to expand her virtual store, we will review a myriad registry options that are available. For example, specialty gift/gift gourmet retailer Sur La Table uses WeddingNetwork.com's synchronized registry system that utilizes Palm Pilots as scanning devices, touch-screen kiosks for in-store registry dispensing, and synchronization with WeddingNetwork.com for widespread registry availability.

Engaged couples can now use Palm Pilots to scan items in selected Sur La Table stores to build their wedding gift registry simultaneously in the stores at the touch-screen kiosk and at WeddingNetwork.com. When guests purchase Sur La Table gifts from a store or WeddingNetwork.com, the registry is automatically synchronized to reduce the chance of gift purchase duplication.

"The registry process is a pleasure when you use the modern technology we have installed and all borders are erased because the registry is available in our stores, on the Web, and by phone," said Carol Couture, Sur La Table executive vice president. "We are very excited to introduce a new level of convenience to our customers."

Junkhan and Flaws are also striving for that level of convenience, but are creating their own goals designed around their one-store budget. One option under consideration is MarCole's Web RegistryWorks, which will link consumers directly to Cook's Emporium gift registry service through MarCole's server.

"I think it will be great to have the registry on- line," Junkhan said. "I am really excited. We have to get ourselves up to speed with the world."



Cross-Marketing

Once Cook's site is established, the marketing process will begin. On the World Wide Web, distribution is not the problem that previously besieged those who had printed brochures. Cook's site will be as accessible as Target's, Macy's, or even Disneyland's. Junkhan's challenge is to make her Web address known to the greatest number of people as possible.

Cross-marketing through traditional media is the first step. Junkhan and Flaws will begin using their Web address on Cook's Emporium letterhead and in brochures, as well as including it in any printed, radio, or television advertising. They will also investigate links with the local Chamber of Commerce, as well as other sites that have some connection to Cook's Emporium or that have an overlapping customer base.

Receiving media coverage in magazines and other local publications is always beneficial. Other goals for the new virtual team will be to send out clever press releases and notes to the media announcing their new virtual domain. Flaws will be checking out announcement lists that lead to resources for promoting the site on the Internet. One place she'll start is The Megalist (2020tech.com) which lists sites that distribute your URL to other sites, reciprocal link services, regional directories, sites that list your URL for free, and other similar pages.

Flaws will also take advantage of two popular automatic submission services: www.submit-it.com and www.register-it.com that will assist you by entering your Web address in many search engines and directories at once.

While all these options are great, Cook's first has to have an address to promote, so we'll stop our update at this point and reaffirm our goals.

Today's goals for Cook's are the development of their site with Holst. Once the site is up and running, we'll address marketing needs and additional Internet services. The Gourmet Retailer and MarCole Enterprises will assist Junkhan and Flaws in developing a noncommerce gift registry presence on the Internet. These goals and adventures will be chronicled in The Gourmet Retailer's December issue. What we discover may help you decide how to approach your own leap of faith into the virtual landscape.

Getting Started . . .

• If you want your own domain name, register it now.

• Start organizing: create a folder to store all hard copies of materials. Begin an outline, a visual map of your site, and put it in your folder.

• Surf the Web to discover sites you like and don't like. Keep notes on why you made these decisions and keep them in your folder.

• Contact local businesses and the Chamber of Commerce to ask about their Internet Service Provider and Web designer.

• Establish a relationship with a provider who will host your site when you are finished. Ask them to recommend a Web designer.

• Interview several Web masters. Ask them questions about Web development and issues for your site in particular. Select one who communicates with you clearly about structure and prices.



Translation please . . .

Server

A computer that is connected to the Internet 24 hours a day with special software that allows Web pages to be "served" to the Internet whenever anyone types in a Web address.

Domain Name

Your name on the World Wide Web. The Web master at your ISP can check to see if the domain name you want is already taken. Or you can contact InterNIC at http://rs.internic.net/cgi-bin/whois. or Network Solutions at http:/www.networksolutions.com to check and see if the name is taken and register it yourself to create your own domain.

ISP

Internet Service Provider. This is the company that will "host" or store your site. You can post your site to an ISP in your city or anywhere around the world. Ask around and see what other people in your area are doing and where the best service and deal can be found.

Web Master

The person who will design your Web site, upload it to a service provider (host), and maintain the site.

.com

Part of the domain name which gives you a clue as to the nature of the Web site, in this case, commercial organizations.

Browser

To see the pages on the World Wide Web, you must have software called a browser. The browser lets you view the graphics, color, links, etc. It reads the information on a Web page and displays it on your screen.

URL

Uniform Resource Locator is the address for every page on the World Wide Web, just like addresses for our homes and businesses.

Interface Design

How the page looks when it interacts with the browser.

Navigation Design

The way people get around your site and understand where to go.

FTP

File Transfer Protocol is a way of transferring files from one place to another.

Bits & Bytes

The smallest unit of information on a computer is a bit. One bit is one electronic on-or-off pulse. Eight bits strung together make a byte. One byte of information can tell your computer to put an "A" on the screen. Put 1,024 bytes together and you have a kilobyte and 1,024 of those together makes a megabyte and then you move to a gigabyte.

JPEG

A graphic file format whose acronym means Joint Photographic Experts Group. Photographs, as well as other images that are similar to photographs, should be saved in this file format. JPEGs can be displayed as 24-bit images.

PPI

Pixels Per Inch refers to the resolution of graphics onscreen. DPI — Dots Per Inch — is a reference used when discussing printed graphics. Printer resolution is expressed as DPI, monitor resolution, PPI. The default number of pixels on a Mac monitor is around 72; the default on a PC is usually 96.

GIF

Developed by CompuServe specifically for online use, it is a file format best used for illustrations, type, and images with flat color. GIFs are 8-bit and cross-platform, meaning any kind of computer can view them.

PNG

Portable Network Graphics. A new file format that is cross-platform and compressed, meaning no data is removed or lost from the image.