During 2000, about 10 percent of Omaha Steaks's annual revenues came from Internet sales, up from about 3 percent in 1999. The growth of the company's online business created opportunities, but also problems. Although it cost less to take an order over the Internet than it did through its call center, Omaha Steaks found it couldn't provide the same level of service to its Internet customers. Take delivery dates, for example. Much of Omaha Steaks's revenue comes from its gift business.
Customers purchase meats to give as gifts, especially business gifts.
Business peaks around the holidays and delivery times are critical. The Website, which was run by an ISP in another city, wasn't integrated into the business information system the way the call center was. On the Website, they couldn't guarantee anything. That was particularly important because shifting customers to the Website from the call center would result in significant savings. The obvious solution was to integrate business information into the Website so customers could get information on delivery dates and track orders, and do other important jobs, online.