Digitization 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. (By Gartner).
It is the Integration of digital technologies into everyday life. Mostly referred as Digital Marketing. It is a broad term that refers to various and different promotional techniques deployed to reach customers via digital technologies. Digital marketing is embodied by an extensive selection of service, product and brand marketing tactics, which mainly use the Internet as a core promotional medium, in addition to mobile and traditional TV and radio.
“Digital marketing activities are search engine optimization (SEO), search engine marketing (SEM) , content marketing, influencer marketing, automation, campaign, and e-commerce marketing. It also extends to non-Internet channels that provide digital media, such as mobile phones (SMS and MMS), callback and on-hold mobile ring tones, social media marketing, e-mail direct marketing, display advertising, e–books, optical disks and games, and any other form of digital media.” (Wikipedia)
The impact of Digitization in today’s competitive business world can be seen through following factors:
1. Easy Access To Customers Through Digital Means Of Marketing:
We can easily access our customers through digital marketing. The increasing nunber of tech users and their high engagement in digital means like smart phones, iPods/ iPads, laptops, note books, mobile phones and smart TV’s has been creating a good opportunity for business professionals to use digital media for promoting their products. Reaching the target market and get connected with the current and prospect customers becomes easy. In the meantime customers have a greater choice through web surfing to reach and dig info about different brands and companies with in no time about what they are searching for. Websites are now considered like an open office of a business organization; working for 24 hours a day, that means 365 days open by giving access to current and new customer base.
2. Referrals And Massive Client-age Reach With Low Budget:
All social media lovers and users are a good source of referral creation its demanding brands. Here a quality product is also playing its role to spread the word and creating brand awareness through referral marketing. Word of mouth is multiplied with several social media users. In another case, digital marketing is bringing up with vast communication coverage while conveying the company’s message to a mass market in a low cost budget including some free of cost online marketing and promotional tools like websites. The digital marketing budget has been considered comparatively less while comparing with the budget of conventional means of marketing. Bulk e-mail and SMS campaign in a small budget can access a large number of customers. E-mail marketing has been in practice not only by SMEs but also adapted by mega organizations.
3. Quick Customer Feedback:
Digital marketing creates direct interaction with your current and prospective clients. This direct interaction and engagement gives businesses the quick customer feedback as compared in the form of using conventional marketing tools. Now customers can express their point of view and feedback about their experiences, how they feel about the product and what features they need in upcoming launch/versions of the product. Customers can get an immediate advice from the online customer service agent. New product ideas can be emerged from an instant chat with an existing customer.
4. Greater Customer Satisfaction:
Customer delight and satisfaction has been in a great focus for businesses in the challenging global business economy. Digital marketing can create greater customer satisfaction as they get all updates and latest info about the brands they use and like via e-mails, sms, e-Newsletters, and telemarketing/contact centers interactions. All these activities play long lasting impact in creating customer satisfaction. We can see the customers and visitors’ rating of websites, products, communication and interaction with online agents etc. that is a key source of customer satisfaction
5. Future Insight With Analytics:
Digital marketing has been paving a great way for future insights with the analytical platforms available on digital marketing channels. Like Facebook, LinkedIn, websites and SEO analytics, E-mail marketing metrics and Bing/ Google digital marketing campaigns by the analytic experts for future predictions about the marketing activities and future brand building plans. The data has been a wonderful tool to work better and create good business while exploring new markets in the same time. Encompassing the future business challenges has been paved its way for the digital marketing professionals and business stakeholders.
6. Short Term Planning:
In the emerging challenging and competitive economies and business environment short term planning is a good choice that prevents taking uncalculated risks. It also provides the businesses with great and optimal use of available resources with a short term planning approach. Dealing with problems step by step bringing good marketing and strategic business results also gives a smart professional competitive advantage also.
7. Digital Branding More Effective:
Digital marketing is creating more effective branding through the frequent digital marketing campaigns. Customers have more visibility of brands in digital media as compared with the conventional marketing tools. Seeing various brands on digital media on day to day and frequent basis creates good associations with current and future customers. It gives a great push up impression and create strong brand building through digital marketing. It covers various buyer personas from brand awareness, purchasing to brand loyalty.
8. Productivity Enhancement Through E-Learning:
The e-learning platform has become a great source of productivity and creating great value for business stake holders. In the busy schedule of business professionals and competitive environment businesses need highly developed and creative professionals to compete in the global business. Self-paced and boundary less learning can be considered as a tactical and strategic business advantage for small and medium enterprises.
9. Efficiency in Business Activities:
Digitization is bridging the gap in the efficiency of business activities. Financial transactions and ERP implementation from production to shipment tracking is not making a business smart but enriching efficiency as whole in business. Reduction of cost, less utilization of resources and better outputs are the key advantages for a business having great strength in digitization. This also enhances the BPI i.e Business Processes Improvement a key indicator of business competitiveness and value creation.
10. Impact on Business Intelligence:
Business Intelligence has a great importance in the global economies. Business with better and strong Business Intelligence are more competitive and long-lasting as compared to those which are weak in Business Intelligence. Digitization has been playing its role in transforming simple business into highly intelligent businesses which take over their competitors and give them strategic leadership in the industry.
This article is written by Farhan Majeed, Regional Consultant for Pakistan & Middle East at the Global Institute for IT Management (GIIM)
So now I ask you a question: Are you ready to make an impact of digitization in the competitive business world? If so, learn more about Informa’s upcoming Marketing Courses; they will enable you to create effective and powerful marketing strategies and enable you to climb your career ladder.