Everyone would agree that humankind is living through the digital revolution. Statistics indicate that the worldwide digital transformation market currently caps at $469 billion. It is expected to cross the 1-trillion mark in the next five years. Whether it is a business with strong roots in brick-and-mortar operations or a venture operating from a rural region, every offline enterprise is migrating to the digital world. However, the downside of this extensive digital migration is most businesses are entering it without a well-thought-out plan. In other words, they have started their digital operations without formulating and putting a digital strategy in place.
What is a digital strategy? How it helps a company to grow its business and operations? This post will try to answer these questions.
What Is Digital Strategy?
Digital Strategy is a broad term that covers many areas. You can’t simply call it a synonym of “digital marketing planning” because it is more than that. To sum it up in a one-line definition: Digital strategy is a well-thought-out plan and policy devised to achieve particular business goals through the digital medium.
For sales and marketing professionals, digital strategy is all about planning to improve the online footprint and sales. In contrast, IT and network employees consider the development of cloud-based operations and data analytics as elements of digital strategy. For a state-run organization working in the public sector, a digital strategy will entail improving user experience and guaranteeing more people can be served through the online service.
In short, a digital strategy can mean different things in different niches and sectors. Since we are talking about the role of digital strategy in growing the business, we will discuss its importance from the viewpoint of marketing and sales.
Importance of Digital Strategy for Business Growth
There are many reasons why companies need to focus on digital strategy for achieving the required business growth.
It Gives Your Business the Right Digital Direction
As mentioned earlier, businesses are hastily foraying into the digital medium without needed groundwork. It is important to understand that setting up a digital division, hiring people, and setting a separate budget for it is not all you need to conquer the digital medium. You also need to guide your digital team and department in the right direction to achieve digital success.
To get in that right direction, you will need to have a customized digital strategy for your business. You may need to hire third-party expert consultants who can understand your business and formulate a digital strategy accordingly. A well-thought-out digital strategy provides direction to the business by:
- Establishing the specific goals of the digital activity
- Determining the measurable attributes for assessing the digital performance
- Identifying the actionable measures that can improve the digital performance
- Setting the timeframe to achieve digital goals
When a company works with a digital strategy that covers the areas mentioned above, it can move in the right direction for its digital growth ambition.
It Helps You Understand Your Online Target Market
Many businesses enter the digital market without fully understanding their online target market. As a result, they often under or overspend on the required resources. For example, a pizza chain operating in New Jersey has to maintain its focus on the same target market. It doesn’t need to spend money on targeting online consumers in other cities. On the other hand, a roadside bookstore starting its digital outlet has to target new markets.
A digital strategy will help both the pizza chain and bookstore owners to identify their potential target markets. The identification of new target markets protects the business from exhausting its resources and efforts in targeting the wrong audience. When you reach out to the right target market, the prospects of business growth remain high.
It Integrates Your Marketing Efforts
A digital strategy ties your marketing effort together. First of all, it devises a plan where a business leverages all components of digital marketing (SEO, PPC, content marketing, social media marketing) instead of banking on any single element.
It has been observed that many companies only focus on paid digital marketing (PPC, SMM) and completely ignore the organic means (SEO, content marketing) of improving the online footprint. A good digital strategy outlines for businesses how to integrate all these elements.
Moreover, a strategy will also dictate how the consolidated digital marketing efforts should integrate with traditional means of promotions. This cohesive marketing effort powered by a good strategy guarantees good business growth.
It Lets You Track the Results
A good digital marketing strategy is not just about devising plans and executing them. It also takes into account their results so that a good feedback mechanism can be put into place. For example, a digital strategy protects a company from continuously funnelling money in paid social media marketing without getting any returns. Similarly, it guides the business to try out a new sales-funnel instead of persisting with the one that doesn’t offer any noticeable increment in customer acquisition.
A digital strategy establishes metrics for different digital investments you make so your team can calculate the pertaining ROIs. By having a continuous check on results, you can swiftly adjust your investment target without wasting resources on the least lucrative avenues, which eventually slows down the business growth.
It Helps You Identify Your Strong Suit
A digital strategy also eventually let you pick your strong suit online. In terms of marketing and sales, a company working with a well-thought-out digital strategy will quickly find out that Facebook is the best platform for its business growth, among other social media networks. The quick identification of your social playground helps you accelerate your business growth on the digital medium.
If you need a comprehensive digital strategy to grow your business on the online medium, get in touch with Microsys. The company’s mission is to deliver affordable and high-quality technology solutions that enable SMEs to meet their goals more efficiently.