This has come as an opportunity for early adopters to drive growth through the untapped channel. You must have experienced the rich & useful communication-style of corporates, medium or large businesses. Remember how your Credit Card Company communicates with you, how you get that wish & 20% discount on your anniversary from a 5-Star Hotel, how you get the ATM-Pin on your Mobile or every transactional detail through SMS or when you call a corporate company, a recorded sweet and friendly voice greets you and guides you to right person with a music & message till the person picks the phone. Now, these are all modern personalized ways to communicate with your clients or anybody who interacts with your company. What appears as a friendly company's personalized service is actually a smartly planned marketing tool which is based on the modern amalgamation of Software, Hardware and Communication-channels, intelligently placed in business with the System Integration Process.
What is Digitalization?
Gartner explains "Digitalization is the use of digital technologies to change a business-model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business." The aim of being digital is to adopt technology for the benefit of the business and stay ahead & competitive in the market.
Benefits of Digitalization
SMB-adopters of digital technologies are gaining a competitive advantage by obtaining quality-customer-insights, which drive their marketing strategy, allowing them to effectively engage with new and existing customers for additional sales. This not only gives the feeling of the modern company but also helps in ingraining a brand-image among clients. The use of digital technology could be a major differentiator or your USP in your field.
The latest Deloitte research suggests SMBs currently making use of modern personalized automation enjoy a substantial dividend in the form of reduced customer-acquisition-cost and increase in revenue-growth, especially if they make use of it in a number of different ways. The chart below shows that SMBs with more marketing automation-capabilities generally experience more favourable revenue-growth. The report finds that after controlling other characteristics, an average 0.8 percentage point-increase in annual revenue-growth and 0.13% reduction in customer-acquisition-cost can be achieved for each additional marketing automation-capability take-up.
This research-report from Deloitte Access Economics provides new evidence that digital is not just for those with online-sales.
How much extra revenue could you create?
A 1%-increase in online service-spending, for example, could increase revenue by as much as $100,000*. Adding just 2 customer-communication-channels could increase revenue by an average of $160,000 per year*
How can data help you build customer-loyalty?
Nearly 50% of SMBs in Australia and New Zealand rank customer-retention as the number one factor for their future success. Yet less than 20% of SMBs are currently using tools such as Social Media to engage with customers.
*Based on average revenue reported by SMBs in our survey
Why Digitalization is now required more than ever?
While the above number represents the foreign market but the fact remains that Digitalization of Business in India is far lagging behind. It is good to understand at this stage how digital you are today. Most Indian SMBs & even small corporates are working in the old style which brings in higher cost on companies due to the excessive use of human resource, less profitability due to the increased cost and not to forget the missed business-opportunities due to the lack of data & intelligence. Recall the case of Kotak Photo Film & even Nokia for that matter! They do refuse or neglect the modern day's customer-requirement & continue serving in the old fashion. The companies have suffered & lost their relevance significantly among modern-age customers. Social Media, Apps, Smartphones etc. have carved a definite place in your target-customers' lives & by each day, numbers of these customers are increasing as new generation starts using these technologies right from childhood.