Many people must be thinking about starting a new business, but there are two different kinds of businesses that they have to choose from. One type is the traditional business, and the other is the modern online business. Depending on the type of business that person is looking to start, will help him decide about the type, either the new modern one or the old traditional one.
Before making the final selection, one must know the differences between these two types as it will help them make a rational decision.
Online Vs. Traditional Business
Face-To-Face Interaction with Customers
The traditional offline businesses allow the customers or clients to see what products and services you are providing them. Also, it is easy for the business owner to interact with the clients in person, and if the customer develops good interaction, then they become permanent customers.
However, in case of online businesses, the customers do not get a chance to meet you, and thus they only rely on the specifications of products and services mentioned on your website. Thus, there are very bleak chances that a strong interaction develops between the customer and the business owner. For instance, Ancestry VS 23andMe can be compared for their level of interaction and growth of the business to see the difference more clearly.
Targeted Customer Localities
The offline businesses are only limited to one place, and only the people of that area have the privilege to buy from them. These companies would need to open their franchises and chains in every city or country to get the targeted customers and also to improve their visibility in the market.
However, in case of modern online business, the business website has the potential to target the far away localities. All around the world they can target their potential customers and thus without any investment in outlets, the online business can carry out their business on a massive scale. Their business becomes visible to all around the globe without any franchise or chain.
The reputation management in traditional online businesses is quite easy as the customer is directly linked to the business owner and his salesmen or customer service representatives. In this way, any dispute can be resolved immediately.
However, in case of modern online businesses, the customer and business representative’s interaction or link is minimal that may sometime become frustrating for the client when they get into trouble or need the help of any kind.
Marketing and Advertisement
The marketing and advertisement of traditional offline businesses are easy as they can access the client’s r customers through television and the print media as well. In this way, they can access their customers to announce their new products or services, their discount offers, their special festival offers, etc.
However, in case of the offline businesses, they can only advertise their products and services through internet medium. This is method is also effective, but the online business has more opportunities to access the masses.
These are the main difference between these two type of businesses, keeping them in mind one can easily choose what type should be chosen to start a new business.