The future of business is digital, so when business leaders start to formulate a business strategy they need to understand that customers, products, business operations and competitors are now digital. Is business strategy being replaced with digital strategy? And do companies have the sales and marketing skills to compete in a digital marketing world?
A business strategy of viewing digital channels or methods as tactics is no longer valid. Instead businesses should see their company as an online ecosystem that connects digital resources both internally and externally to customers in order to compete. To stay competitive a business must harness digital technologies and channels, not just to deliver sales or superior customer experience but to drive operational efficiencies across all aspects of the business.
One big question facing business leaders today is “Is our business constructed to thrive in the digital marketplace?
Digital disruption may be the only possibility for future business success as the barriers to market entry are being blown wide open. Competitors both large and small are rushing in grab a share of the market, so every business has to have a strategy in the digital marketing landscape. Bye now, most businesses know that digital is changing the way we do business. Every business must evolve and have a digital strategy that can take advantage of new sales and marketing platforms, data tools, and digital technologies that can get a business closer to customers.
The adoption of digital channels by the markets means a business must change and ensure that agile adaptation can be delivered in all levels of the company, both strategic and tactical. A business strategy for a digital marketing world may be the only option for some companies to survive and move towards a profitable future.
The market is pulling these business changes as the markets or countries with knowledgeable populations, high standards of living and education are demanding companies face up to the challenges in the digital landscape for communication and commerce. The reality is that digital advancement and the associated challenges will accelerate rapidly in the few years. Business leaders must grasp the straw and realise that innovation, flexibility, and speed of execution will be core to thriving in a digital marketing powered world.
Regardless of B2B or B2C, buyers are now highly knowledgeable, tech savvy, and the Internet and social media is their go to source for information. Today, people communicate differently, buy through different channels and expect a different flavour of products and customer support. The result is digital is not an add-on but is a mind-set, a lifestyle, a way of doing business.
Here are some suggested digital strategy priorities.
Integrated digital strategy across the business
While business leaders see that digital is having a strong impact in the area of sales and marketing they should also review customer service, finance, supply chain and human resources. While most companies start the digital journey by adding-on social media (LinkedIn, Facebook, Twitter, Pinterest) they do not integrate these social tools into an integrated business strategy. While the focus on near term activities such as lead generation are positive, to fully maximise the customer experience and operational efficiencies that can contribute to a competitive advantage companies need to expand out the digital strategy to all departments.
Business model evolution
The digital channels have changed customer interactions and expectations, impacted on channels of communication and delivery has resulted in business reviewing their business models. Forward thinking companies see digital transformation as integral to their evolution. Business model evolution is used to innovate and respond to changing consumer preferences including introducing new business models, services and product offerings to drive profits
IP, technology lead and more traditional companies can benefit from developing partnerships with outsourced sales, channel partners etc.in order to compete with companies that have grown up in the digital landscape. For the companies that do not have the skill-sets in sales, marketing or social selling, nor the capacity to adopt a digital strategy, it could be more efficient and cost-effective to partner with a digital enabler in their market space or outsource it internationally. Outsourcing a requirement such as sales via partnerships could speed up the digital strategy while a business is able to harness a partner’s strength while addressing the market challenges.
Focus on the customer experience
The digital channels have seen the rise of faster communication, social news and user generated feedback content. The ability of one to many communication platforms has meant the customer experience is now a critical element for a company to gain a competitive advantage. Relevant in both B2B and B2C companies, the focus in the marketing strategy to a customer approach for content marketing, information dispersal and updates is critical. Companies should strive to deliver excellence across all its customer touch points. A digital marketing strategy should consider what new and innovative services would enhance the customer experience.
Social media engagement
Social media or social selling driven customer engagement can be the disruption agent to drive a business forward. Digital marketing is not just a series of social media tools. While social media tools are a great vehicle to drive brand engagement, companies need to accept “business as usual” is over. The future buyers for products and services live in the digital space, and so will their suppliers. Social media engagement is part of the digital marketing strategy involving content, access channels, audience interaction and ability to influence remotely.
Digital distribution channel
Digital distribution channels need to be explored, defined and redefined as the “4P’s” of marketing are being rewritten. Can a business’s product be delivered or accessed in another way or format? Digital distribution and ease of customer use may be directly related back to the digital acceptance of the company’s senior team and the company’s ability to execute the digital landscape as a strategic business priority to give it some competitive advantage. Across all regions and market segments of the world, digital disruption to distribution channels is here now. The growing influence of the “Internet Always” population and the impact of digital technologies on the way we conduct business requires business to rethink strategy.
Every business whether start-up or large corporate needs to have a business strategy for a digital marketing world which means to start with acknowledging the changes and then respond accordingly. Remember this phrase “When technology and society change faster than businesses are able to adapt, then the result is extinction” – Karl-Heinz Land.
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