Refocusing Web Services

MARTIN WRIGHT, EMERALD SOLUTIONS_
It's a much different environment, much more difficult. Obviously, the dot-com work is gone. We were never very much focused in that area but, having said that, that was kind of some of the gravy that was fueling a lot of the growth [in Web services]. And that business is absolutely dried up and vanished. So there's definitely a different business climate, and it's one where long-term relationships and repeat business are key for us. The cost of winning new clients is very, very high in this marketplace.

'Long-term relationships and re3peat business are key for us. The cost of winning new clients is very, very high in this marketplace.' -- Martin Wright, Emerald Solutions

KELLY RODRIQUES, NOVO_
One of the things going on in the market right now is that everyone is running for cover around measurable results,at least in our client base. We've won business through our commitment to delivering on certain business goals and connecting that to our [employee] compensation model. As a private company, we weren't a big stock option draw a year or two years ago. Frankly, we didn't see that as a sustainable comp model for the talent that we had. I think this is a key point. Part of our comp model connects [the employee's] comp into the success of the business goals. And that's helped us grow our business.

So our growth rate hasn't slowed. We had a flat Q4, but we'll see 150 percent growth year over year in 2001. We saw 270 percent growth year over year in 2000. So we're feeling pretty good about it. I think there's a lot more focus on the customer metrics right now than on big projects. What we're doing is going to every single client and saying, 'How can we walk in and put in front of them a significant cost savings?'

DAVID FRY, FRY MULTIMEDIA_
Our company experienced growth last year, and this year is certainly a challenge,but not a disaster. Interestingly, we're actually seeing many opportunities for potential new business, maybe more than we've ever had. But closing that [business] is very hard. People are very hesitant about making commitments.

So we probably are talking with more serious brand-name companies about major projects now than we have for a long time. But that discussion goes on and on, and it's very hard to get the [deal] closed because of the economic situation. I think potential clients are much more concerned about results and the experience and investment background of the company that they're going to work with and less attracted to the sort of 'gee whiz' marketing.

CRN's 2001 I-Builder Roundtable in New York City.

But going forward, it doesn't take very many of those opportunities to present themselves to achieve that level of growth. What we're doing differently now is not getting out in front of ourselves [in the number of customer projects] like we did last year. The only thing we needed to worry about [then] was hiring people. Well, now, hiring people is not the issue. It's making sure that you have the sustainable relationships with your customers.

KEVIN ROWE, AGENCY.COM_
One of the things that the dot-com companies did that I think was positive was apply some pressure to the [brick-and-mortar] companies that didn't have the majority of their revenue driven off the Web. So they felt a need to get moving and to do something [on the Internet]. Right now, I think we're caught in a world where a lot of [companies] were forced to do something [on the Web] and did it without a plan. And so a lot of these CEOs and their companies are saying, 'OK, I launched a Web site. Now what the heck am I getting out of it?'

Today, we're doing a lot more strategy work as a front end to any major production work. We have a lot of offerings now that are much more focused on maximizing [the customer's] return, everything from the relationship side,whether your Web presence creates an experience and is easy to use,to whether it's something that consumers, your business partners or your employees will embrace and use.

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