Feeds

Corporate websites are ‘financial black holes’

Little more than cash-eating billboards

  • alert
  • submit to reddit

Designing a Defense for Mobile Applications

Too many company websites are "financial black holes" that gobble up stacks of cash, but deliver few benefits.

More than half of UK and European companies have no idea what return on investment (ROI) they make from their websites, according to a survey commissioned by Comrange and carried out by the European Centre for Customer Strategies (ECCS).

The problem is so bad that some companies are ploughing more than £1m a year on Web running costs yet haven't a clue whether they're getting value for money.

Some 465 companies from across Europe - including those in IT, telecoms, finance, manufacturing and construction - were quizzed as part of the research.

While two-thirds said they generated sales through their websites, a similar number said they failed to cash in on this and use their websites to increase customer sales.

Those companies that were able to calculate the payback from investing in the Web gained more business benefits than those that were unaware of their return of investment (ROI).

The more Web savvy firms are more than twice as successful in generating sales and creating a better "customer experience", said the report.

"The [survey]…shows that over half the websites are little better than financial black holes into which money is poured never to return," says David Harvey, director of ECCS and author of the survey.

"They generate scant revenue for their owners and little value for their customers. The clear winners are the ISPs, telcos and other web-enabling service providers."

He said that most companies treat their websites as "little more than billboards".

"The opportunity to improve business results by making better use of Web technology is largely untapped," he said.

This week a report slammed the UK's top businesses for running poor websites. The Customer Respect Index (CRI) found that a fifth of UK companies failed to respond to online queries, while two in ten took more than three days to respond. ®

Related story

Dixons bottom of 'customer respect' index

Using blade systems to cut costs and sharpen efficiencies

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.