• by Jack Loechner , Staff Writer @mp_research, May 24, 2005

The Interland Spring 2005 Business Barometer revealed that two out of three business leaders clearly believe that business Web sites influence overall sales, both on- and off-line. In addition, 94 percent say their businesses have Internet access, and seven out of 10 cite email as very or somewhat critical to their business.

Naming their their top three 2005 business priorities:

• 79 percent of business leaders name revenue growth
• 70 percent customer retention
• 46 percent expense reduction

The top three immediate threats to the success of small and medium-sized U.S. businesses were reported as:

• rising inflation (44 percent),
• the current trade deficit and the collapse of the dollar's value (40 percent)
• energy and other supply shortages (40 percent)

The group identified the top three greatest strengths of U.S. businesses as:

• technological lead and strong productivity (49 percent)
• democratic government (46 percent)
• flexible economy and labor force (39 percent)

Joel Kocher, CEO and Chairman of Interland, says "This study shows that small and medium-sized businesses that are using the Internet to market their services and offerings are getting a clear return in top-line revenues for their investment."

70 percent said e-mail is critical to their business, with 72 percent communicating with existing customers, 56 percent with partners and business associates, 53 percent with potential buyers, 36 percent with employees, 33 percent to get and request bids, and only 14 percent said they don't use e-mail in their business.

Other important business tools include:

• community relations (55 percent),
• Web sites (47 percent),
• public relations/media coverage (31 percent)
• direct mail (26 percent)
• Yellow Pages (23 percent)
• email marketing and newspaper advertising (both at 21 percent)
• Search engine keywords (18 percent)
• telephone marketing (10 percent)
• outdoor advertising (10 percent)
• magazine advertising, print coupons and radio advertising (all three at 6 percent each)
• Web banner advertising (5 percent)

Download the complete report here.