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Online business or the e-commerce is the growing market replacing the huge fixed cost associated with shop and establishments. Online marketing has also replaced the fixed cost related to employees and other amenities. This is a fatal concept being carried in the mind of the readers or new entrepreneurs. Human capital cannot be eliminated but only can be reduced. Cost is not the prime factor while designing the strategy for business development. Neither it’s the battle of fixed cost or Variable cost. It’s a strategy of cost linked with multiple benefits. We cost accountants have to innovative strategies where cost needs to be designed where multiple benefits breeds like bacteria for the development of the business. The days of cost cutting are over particularly after the debacle of 2008.Cost needs to be aligned with long term business development where the society and business both develops over the years.

While digging facts I came across some research findings where I find that cost of employees has a substantial contribution even after the business platform is being converted into online marketing. Training and Education of employees plays a vital role for getting success in any online marketing business.

Online marketing needs more investments in human capital to keep the system active. Supply chain management is the biggest place where human capital interference is highly required. In order to achieve success in online marketing supply of good and in-depth understanding about the process of supply chain management is required which can only be achieved when the employees are well educated and sufficient new training and education is being provided to them.

It’s the employees who take cares about maintaining the supply of goods from the order being placed by a distant client. If the employees are of poor quality then substantial loss will when an client places an order and the same is being lagged while execution. In online marketing business one cannot afford to be delayed while supplying goods. Well over here I would like to give my personal experience which I find to be applicable for everyone. We do online recharge of our mobile phones. Often we get delayed response for a recharge which we have done. Now if the delay is more either the client will move away and will avoid such purchase form the online marketing company. I often find while doing shopping an various shopping malls that the existing manpower is incapable of making clear interaction or even replying about the product features to the consumer. This is blessed due to the theory of mass selling concept. Where only sales numbers are being taken for granted and employees are taken as dogs and cats.

Employees need to be well educated for this type of business where rigorous training and modern sized approach of dealing with huge flow work needs to be given. Retail outlets have started their operation into online marketing just to cut down on the fixed cost component and they derive the principle that online marketing is a cheap business. Well it is cheap but cheaper leads to loss should also be taken into account.

I found in my research that if online marketing is being influenced with human labour then interaction with client over the voice can be of great revolution for the online marketing business. If new products or any new process comes into the system, informing the client and helping him to decide for which product to go for based upon clear understanding of the consumer requirements can be of great help.  Fast life has left less amount of time to gaze around the advertisement hoarding around the various places. Hence we can conclude that once a new consumer becomes a client it’s the responsibility of the retailer or online marketing business to nourish the client for making a long term client. At the same time we can conclude that brand can be built over the phone rather than sending a junk mail about new products.

In India we have already misused this concept which has lead to give birth to DND facility. But still I find that using this model can be of great help provide once the retailer gets an clear instruction form the consumer about informing them about building long term relationship. At the same time one should make a note that only informing about new products cannot be the best way to build a long term client. All we need is to stretch beyond products to make a long term client. For an example if a retailer collects date of birth of every consumer and sends a greeting card preferably not an e-greeting to the consumer then this can create a great impact on the consumer mind. Involving business with consumer family should be the prime motive behind building business for the long term.

For example if you do an online recharging form an website about your mobile phones and the company find that if you are an regular or often user of the same then to promote business they might give you an birthday gift on your birthday either in the form of coupons or anything else. Now imagine that the company is based in Gujarat and the consumer is sitting in West Bengal.  Now if the consumer gets a gift then he automatically jumps with joy and shares the same among his network. Looking at him automatically others will follow the same company for recharging their mobiles which creates more business and more growth for the company. Well sending the gift can be a big step since that will also cost to the company but that cost will get you dozen clients and also expands your market where you had negligible share. Imagine if the same theory is being implemented in various products in rural India calculate the networking of new consumers one will create from such a step.

Well to get these of ideas and strategies all you need is to deploy education and improve quality for the employees so that new strategies can be implemented without much fuss. Online marketing should not be looked with a one eye open. Despite of DND and other facilities one grows its business. It’s not the battle of fixed cost or Variable cost. It’s a strategy of cost linked with multiple benefits.

Indraneel Sen Gupta

Master in Economics/MBA in International Business/ICAI Final)

Global Macro Economic Researcher and Business Strategist

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Published by

Indraneel Sen Gupta
(Vice President-Business Development,Research & Product IFAN Finserv Private Ltd.(SPA Group Company) )
Category Others   Report

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