Put simply, it increases revenue.
It broadens the customer base. This we already know.
It can lead to a new sales funnel. Traditionally marketing develops would-be
customers. Today, it can be
customer-led.
‘OnePlus, which sells about 70 per cent of its phones outside China,
has become a must-have phone for techies who appreciate its clean build and
fast performance, according to analysts. Like Xiaomi, the company has built up
a dedicated following through user engagement forums and events and it uses
that feedback to develop new products.’
– How popular phone brands Oppo and Vivo win without
celebrity executives, South China Morning Post, 30 Sep, 2019
celebrity executives, South China Morning Post, 30 Sep, 2019
Even more impactful are comments left on
products and services online. Good remarks lead to sales, conversely for
adverse customer experiences. Today,
comments left by happy customers are as impactful, if not more, than brands. New products or services of quality from
smaller firms now can, if attention is diligently paid to customer service
online, build their brand.
In the digital era, word-of-mouth has gone
mainstream.
Digitisation, however, is not only about
sales and marketing, a common misconception.
It also reduces costs, say, of goods
design, marketing or R&D and in general of frontend operations. [IT reduces costs of backend operations,
improves productivity and efficiencies.]
Frontend
operations Backend
operations
Marketing/branding/PR Processing; sales, transactions,
financials, etc
Business
development Inventory
Sales Logistics
Customer
service IT
It improves effectiveness of
customer-facing activities such as consumer engagement (sales development) or
customer service. It makes things convenient for customers. This leads to more
sales.
It reduces guessing, helping managers
execute better, for example by identifying products that customers like or the
features they want. It does so more
effectively than through traditional market surveys and is less costly.
‘John Fluevog, a
designer of high-end shoes created open source footwear by allowing customers
to submit designs. They get to put their names on the shoes. The best ones get put into production’
…an example of
co-creation, co-design with customers.
John Fluevog gets new ideas, knows what customer wants (instead of best
guess), get plugged in to the latest trends, save a designer or tow.
These are examples of the use of
digitisation for conducting business. It
covers a gamut of business.
Digitisation is simply how business is carried out over the
internet. Or to be more complete,
business operations; ranging from the sell-side (marketing, sales, product
design) to R&D, business development, customer services ..….and to tasks
like keeping track of trends, gauging customers’ wants; many of these in situ.
It is about growth, about revenue, about improving margins.
To be clear, it realigns existing processes while also introducing
new techniques to operate in the digital space. Online marketing, for example, is
more effective for some campaigns.
Digitisation uses the internet or rather its machinery - business
models, rules, methods, tools, engagement platforms – and technology (tech), to
do that. It is a new way to carry out
business operations.
Think of digital as another channel to carry out your business,
alongside conventional means and digitisation as the mechanism.
This is a ‘quickie’ on digitisation. An in depth post is here – what
is digitisation and how does it affect businesses.
Digitisation,
digitalisation, digitization, digitalization, digital economy
#Digitisation,
#digitalisation, #digitization, #digitalization, #digital economy
@Digitisation,
@digitalisation, @digitization, @digitalization, @digital economy
