Capital Business Finance

There is an epidemic in the United States. An epidemic that is so overlooked, if gone unchecked any longer, could cripple the economic strata of the U.S. An epidemic that could be responsible for the genocide of millions of businesses.  Curious what it is? I am referring to the gross mismanagement of e-commerce businesses. Okay, perhaps the phrases “cripple the economic strata” and “genocide of millions of businesses” was stretching a bit too far, however, it is a fact that the bulk of e-commerce businesses are not built on an infrastructure that embodies stability. I am referring to a lack of customer service support in the umbrella of businesses designating themselves “e-commerce” or “virtual businesses”.

It is true that the lure of starting the e-commerce business is powerful. An endeavor as such usually requires little or no capital investment, a credit card processing account, and rudimentary knowledge of HTML coding. These three elements compose the basic formula for starting an e-commerce business.

There is a marked difference in the formula for starting a business and the formula for maintaining a business. To expound on the latter, what truly makes a business thrive is proper customer relationship management and immediate telephone / live voice account support. This is the key component that is missing from most on-line or “virtual” businesses.

Take, for instance, the internet based company Netflix. If you are unfamiliar with the company, they are a relatively young e-commerce business specializing in mail order DVD rental. The minds behind the ingenious idea that is the basis of Netflix failed to create telephone support for their product. There is no doubt this decision was a calculated one as they most likely weighed the cost of maintaining an in-house call center vs. integrating purely e-mail based support.  Without looking at the numbers side of the argument, imagine the frustrated consumer having problems with their order and having to rely on a 24 hour lagged e-mail response system to rectify their account issues.

Based on this plausible conjecture, I believe lack of live operator support will be the ruin of the Netflix organization and the downfall of all e-commerce businesses that follow the same train of thought. What these businesses do not realize is that it is possible and extremely cost effective to outsource your call center needs to an established advanced call center facility. This solution has a two fold benefit. It serves to establish a solid foundation of customer relationship management and opens businesses up to benefit from word of mouth advertising.

Believe even a small internet business can greatly benefit from utilizing a call center to manage their customer service or sales calls. The initial investment is usually zero (excluding research time to find the appropriate facility) and most call centers charge on a per call basis (meaning you only get charged for the calls they actually receive).

If looking at business from the customer’s perspective as opposed to looking at it from an initial profit standpoint, it behooves all e-commerce businesses to initially setup a live call center to manage all of their calls. If the infrastructure is not initially setup correctly, your business may fail before it has even begun.

Capital Business Finance Labels:

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In the past few years, the anti-corporate movement (including those opposed to globalization) has gained a bit of steam.

What many people in the movement promote now is called Corporate Social Responsibility (CSR), the idea that corporations should be responsible to all of society and the environment, as well as to shareholders.

It’s a shame they’ve gained momentum. After all, without modern corporations we would all be poorer, and in particular, few of us could expect to retire comfortably. More than anything else, modern corporations exist to provide pension income.

Sure, corporations used to be owned by a few, extremely rich people. But, with the widespread adoption of pension funds and mutual funds, corporations now belong mostly to working people.

While it’s true the average working person has far, far less wealth than the average billionaire, there are many, many times more working people. That means company and government pension plans can invest vast sums of money into capital stock, making working class people the largest shareholders of many corporations.

From a communication perspective, I’m interested in knowing why Corporate Social Responsibility gets such good media coverage and so much attention. I’m also interested in knowing what we, as communicators, can learn from them.

For starters, the anti-corporate movement has a simple message: “Corporations have too much money and power; working people don’t have enough,” or some variation on that theme. On the other hand, my defence of corporations above is anything but simple, even though I’m pretty good at capturing ideas in words. Did your eyes glaze over as you read my description?

The ‘anti’ movement also enjoys the luxury of making a good (poor working people) versus bad (rich corporations) argument. That’s a moral argument, one that adds spice to any news story. On the other hand, the ‘pro’ side works largely with rational discourse and the ideas of economists.

Third, the protestors bring passion to the anti-corporate message. After all, this is a battle of good against evil, isn’t it? Again, the defenders of modern corporations and globalization have to rely on the prosaic science of economists.

Fourth, the label ‘Corporate Social Responsibility’ also helps the anti-corporate movement. Not only does the name act as a unifying point for its advocates, but it also implies that CSR is a good thing. After all, who could be against ‘social’ and ‘responsibility’?

Now, despite their high media profile and ubiquitous presence, the advocates of CSR have a problem. They may be able to win the attention of reporters and editors, but they haven’t had much clout with the real decision makers, the people who run companies, pension plans, and mutual funds.

And, the decision makers aren’t likely to be swayed. They understand the role of corporations, and they know where their responsibilities lie. Even widespread public sympathy for CSR isn’t likely to have much effect, since they report to shareholders, not to society as a whole.

So, perhaps the final lesson we’ll take from the anti-corporate movement today is that, sometimes, great communication can only take you so far by itself.

Capital Business Finance Labels:

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