PracticePeople In PracticeDot.coms told to value customers

Dot.coms told to value customers

Internet companies were given more bad news today after being told many could go bust as they are ignoring the importance of their customers and traditional business plans.

Most internet start-ups are also unlikely to achieve long-term success because their owners are opportunists looking for short-term profit at the expense of their customers, according to a survey published today.

According to PricewaterhouseCoopers Management Consulting Services, dot.com opportunists sacrifice long-term success at the expense of short-term gain – with a massive 85% of dot.coms not rating the completion of customer orders as important.

The warning follows several high-profile dot.com crashes including boo.com and clickmango.

Bill Bound, European e-business consulting partner at PricewaterhouseCoopers Management Consulting Services, said: ‘Traditional companies’ emphasis on fulfilment is the result of years of experience – whereas the dot.coms believe that strong marketing will persuade customers to log onto a website and order goods that never actually get delivered.

‘The lack of focus on traditional business skills is also holding dot.coms back – their biggest challenge is to achieve financial credibility in the marketplace’, Bound added.

Bound added: ‘The prize will go to those organisations able to apply a different, faster, more flexible and leaner operating style to their internet activities.

‘The challenges facing pure play dot.coms are how to achieve credibility in the market place and match the financial strength of incumbents.’

Links

Dot.coms pay no better, says study

Dot.coms share options fright

Dot.coms facing financial test

UK dot.coms best in Europe – for now

Liquidators pick up dot.com pieces

KPMG finds buyers for boo.com

KPMG gives Boo.com buyers 24 hours to raise £1m

PwC website

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