Digitalization is important for businesses of all sizes. Digitalization of your business should be the central point of discussion throughout the year as new technologies evolve day by day. The impacts of digitalization can turn businesses upside down and offer amazing benefits.
If you think that you can escape from the competitors who use the latest technologies to conquer new customers including yours, you should remember the fall of Nokia which was the industrial leader before Android phones came to existence. Nokia was reluctant to adopt Android by Google and they had to pay heavy price for sticking on to their Symbian operating system. If you want to grow your business, at least, you should be available online with little information about your business and contact details in a local online directory.
Slow Growth of Your Customer Base and High Advertising Cost
If you stick on paper notices, brochures, boards, TV or Newspaper advertisements, you can inform about your business to a small portion of the population only and most of the potential customers are out of your reach. Your advertisement cost per person will be very high considering a competitor who uses a social media platform like Facebook to reach customers and build brand awareness.
Digital advertisements have far better impacts and efficiency compared to old models of advertisements. If you create good content and images for online advertising, it can be used as many times as you want. Digital contents are non-destructive and available for all times. You can edit the digital contents over time. So managing digital ads is far more economical than conventional advertisements.
More than 6 billion people have access to smartphones in 2022 and almost 55% of the global population use the internet. Your business has unlimited potential to grow across the continents with digital advertisements. Most of the social media platforms, business directories and video platforms are available free to use. A businessman who transforms his business advertisements to digital platforms will have a higher chance of success than a conventional businessman who advertises locally with few available resources.
Grow your customer base and lower your advertisement cost incredibly using digital marketing.
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Difficulty in Retention of Customers
Retention of customers is the ability of a business to turn a customer into a repetitive buyer and thus establishes a long term relationship with the customer. Using conventional techniques it is difficult to engage with a customer.
Which are the techniques used for holding a customer without digitalization?
1. Sending a postcard on special occasions to the existing customers.
2. Call and wish over the phone.
3. Call over phone to tell about new products, services and offers.
4. Send customer care executives to visit customers at their destinations!
All the above techniques are costly, time consuming and involve a lot of human effort. There are scarcely any passive methods for customer retention in conventional methods.
Consider a company having a digital marketing department. What will they do when a first time customer arrives?
1. They will ask for the customer’s WhatsApp number.
2. They will collect the customer’s email address.
3. They will ask for the customer’s social media pages.
4. Ask for customer feedback on the website or business listing.
Done. Now the company can connect easily with the customer through automated software or a digital marketing person. If the company uses automated software, all the necessary communication will go on passively with customers. The Company can send details about new products, offers and new ventures. The budget for customer retention will be smaller compared to conventional methods. Cost for attracting a new customer will be much higher than the cost for the retention of an existing customer.
If you want to engage with your existing customers at low cost, we will help you with online tools. Contact us now.
Ecommerce Outperforms Conventional Product Sales
Ecommerce is now a common practice for most businesses. The buying and selling of products or services online refers to ecommerce. For many businesses, ecommerce is another distribution channel to sell their products apart from conventional sales practices.
How does a company sell their products in conventional sales?
1. Company manufactures a product.
2. Informs about the product to dealers.
3. Advertises about the product in media like newspapers, TV and radio.
4. Dealers distribute the product to wholesalers and wholesalers to retailers.
5. Most of the dealers return money to the company only after the sales or at a future time.
We can discuss the disadvantages of the above sales system.
1. Company has already spent money for research and manufacturing of the product. So they need to get the money back which has been spent on the product as soon as possible. Here, payment is delayed even after selling the product. Payment delayed means the company has to find new capital to continue the production.
2. Company is relied upon the dealers and retailers entirely for the success of their product.
3. The company has to spend a considerable amount of money for advertising in the media in advance.
4. The company has little data about the sales of their products and it is difficult to get insights from the data as it is in papers. So the market team has to work overtime to drive the sales in the correct direction.
5. The company needs to connect buyers using another mechanism to get correct feedback from them.
6. Little sales from reference.
If a competitor with the same product portfolio uses ecommerce as another distribution channel for selling their products, what additional advantages does the competitor get?
1. Products are available online. So there is a greater chance that the products appear automatically when a potential customer searches online.
2. Ecommerce helps to get the money instantly or at the time of delivery when a customer buys the product online.
3. Company directly interacts with the customer. So the company gets feedback form the customer directly which in turn helps to improve the products over time.
4. Company has all the data to identify the behaviour of the customer and possible retention of the customer.
5. It is possible to give customer specific offers.
6. Ecommerce offers a parallel, self-sufficient distribution system for the company.
7. Product sales are carried out 24 x 7.
8. Company has full control over the sales. In the conventional sales system, companies have to rely upon others.
9. No reach limitations for the company. Companies can sell the products to customers out of their geographic reach.
10. Since most people are using smartphones and the internet, companies can cut a considerable percentage of their budget for advertising in media.
11. Customers can help to sell more with reference and testimonials.
Given the growth of mobile commerce, it’s become increasingly important for ecommerce business owners to focus their efforts on mobile marketing too.
If you want to increase your sales online, contact us . We can help you with digital marketing and Ecommerce.
Low Efficiency of Your Business Compared to a Business Runs with Enterprise Software
Which are the departments most common to businesses?
Finance, Production, Marketing, Sales, Human Resource and Purchase. All these departments should be managed well for the sustainability and growth of the company.
Consider that all the data in these departments are managed using papers and prints. Every day new files with a considerable number of papers pop up. It needs many employees to check the papers and correct it. This will add more papers to the file and you will need enough space to store all these files in order. Tedious paper works and lacking insights into the previous data lead to delay in decision making and inaccurate analysis at times. You will need more employees, paper and files, and shelves to store the files. It is evident that the system is inefficient.
What is ERP software?
An ERP software gathers data from various departments and analyses them to make decisions. ERP solutions have many modules which are used to guarantee the ultimate performance of various departments. It streamlines the operations of Finance Management, Human Resource Management, Production Management, Supply Chain Management, Sales Management (including Ecommerce) and Customer Relationship Management. ERP solutions are customizable according to businesses and replace or add new modules which best suit your business.
Consider a competitor who uses an ERP solution to fully or partially automate the departments, office works and human resource management. All the data is entered to the ERP software rather than files. ERP software gives access to relevant persons to check the data for making the decisions. It provides enough analysis, graphical representations, results and insights so fast that the managing persons need a little time to take important decisions. Definitely, the competitor has an edge over your model of business.
Is ERP Software Compulsory for the Success of Your Business?
No! If your business is large, ERP solutions will help you to reduce the difficulties which you face while dealing with large volumes of data and processes. If your business is medium or small, you need to use automation tools or a custom software where you face the difficulty in managing your business. For example, if you want to get more customers outside of your reach, you can start an Ecommerce portal for selling products. Another example, if you cannot manage your employees for maximum production with minimum cost, you can use a custom Employee Management Software..
Advantages of Using a Software to Manage Your Business
Software managed businesses work more systematically, professionally and efficiently. Controlling the processes carried out in a business using software are less prone to human errors.
1. Increased Productivity
2. Easy Data Management
3. Replace Paper Processes
4. Lower Operational Costs
5. Better Customer Management
6. Accurate Stock Management
7. Efficient Supply Chain Management
8. Software Saves Time
9. Real Time Visibility
10. Automated Sales Reporting
11. Effective Internal Communication
Poor Resource Management without Digitalization
You can’t utilize your resources including employees, raw materials, vehicles, land, buildings, warehouses and even machines without a streamlined and constantly monitored digital processes. A resource management software helps to optimise the way managers and supervisors prioritize tasks, manage resources, and implement technology. A company which manages resources very well becomes efficient and manages to cut the production cost. Without digital assistance, the company’s managing efficiency will decrease.