Co-Founder, Everlast Media GmbH.
Digitalization is on everyone’s lips, but how do you truly harness its potential for your business? As the owner of a fully digitized consulting firm boasting over 20 remote employees and nearly 1,000 online clients, I understand what it takes to achieve successful digitalization.
The term “digitalization” has evolved from being a neutral technical process to a positive and forward-looking umbrella term for modernization in various aspects of life. Nevertheless, the original meaning of these processes remains intact.
Enhanced comfort, personalization and speed are crucial for competitive success. In my experience, a flexible and adaptable corporate policy often holds greater importance than long-term thinking. The ability to respond quickly and satisfactorily to individual customer needs is crucial for long-term customer retention. According to a German-language bitkom study, “87 percent [of companies surveyed] are convinced that the use of digital technologies plays a crucial role in the competitiveness of the German economy.”
This article underscores the significance of digitalization and why it may be prudent to reevaluate and evolve your current business model.
The Importance Of Flexibility And Adaptivity
Companies are adept at adapting to various market situations and adjusting operations accordingly. However, market changes have become so comprehensive and multifaceted that small adjustments are often no longer sufficient. Customer needs have fundamentally changed, and the digital shift presents entirely new requirements for companies.
Digitalization Versus Digital Transformation
Digital transformation is a direct consequence of digitalization and is evident in changes in various industries brought about by the internet. The advertising industry is a prime example. In the past, the industry often used a broad approach to reaching customers, while today, precise statistics demonstrate user interaction with content and the impact of advertisements. This also applies to emails, where the sender can track open rates and reading behavior. The internet has fundamentally altered how people interact, offering new opportunities.
How Companies Can Begin Their Digital Transformation
Companies aiming to actively drive digital transformation should develop a clear structure and a concrete implementation plan. Here are some crucial steps.
1. Process digitalization: Consider which processes within the company would benefit from digitalization, such as communication, procurement, production and logistics. Utilize tools for internal communication and maintain control over your data. To determine which processes would benefit most from digitalization, you have to think about where you and your employees waste the most time and money. Perhaps you still send contracts to your clients via postal mail. The client waits for two weeks before returning the signed documents. An employee must then scan and review them. This process could incur costs amounting to several thousand euros each year. Why not consider digitizing this entire workflow?
2. Cloud technologies: Streamline operations in the company by leveraging cloud providers that allow access to files from anywhere, eliminating the need for time-consuming file exchanges.
3. CRM systems: Implement customer relationship management (CRM) systems to manage and enhance customer relationships by storing all relevant information in a database. A good CRM system should have a user-friendly interface, offer customization and scalability, integrate seamlessly with other tools and provide robust contact and lead management. It should also support automation, offer comprehensive reporting and analytics, be accessible on mobile devices, prioritize security and come with strong customer support. Additionally, user feedback and cost-effectiveness are crucial factors to consider when choosing the right CRM system for your business.
4. Customer service: Enhance customer service with the help of chatbots and digital solutions to automatically address frequently asked questions and relieve staff for other tasks.
5. Data-driven decision making: Use data analysis to better understand customer behavior and needs, continuously optimizing your offerings. Businesses should analyze customer behavior by evaluating data like purchase history, engagement with marketing campaigns, website browsing patterns, feedback and social media interactions. Understanding demographic information, customer service interactions and referral sources is also crucial. By examining these factors, businesses can tailor their products and services to meet customer needs more effectively and improve overall customer satisfaction and retention.
6. Social media presence: Showcase your company on social media platforms to present it as modern and contemporary and boost awareness. To build a strong social media presence, businesses should first identify the platforms where their target audience is most active. Maintaining a consistent posting schedule with a variety of engaging content types is essential. Focus on the value for your customer. Additionally, engaging with the audience, using relevant hashtags and analyzing performance metrics are crucial for sustained success on social media.
7. Engage experts: Seek input from external experts to guide your company’s transformation and benefit from external perspectives.
Conclusion
Digital transformation has gained momentum in companies and is of paramount importance. Company digitalization should be defined as the top priority to endure in the market long term and avoid being surpassed by the competition. Digital strategies offer flexibility, process automation and the ability to adapt to evolving customer needs. Future-proof companies are digital, and leaders should lay the foundation for the digital future today.
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