(English) 5 Advantages of a Digital Business

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Technology is changing the consumption habits of people and therefore the way companies interact with their customers. Whatever the business, the client has got used to obtaining immediate, simple and effective answers.

As such, these 5 characteristics frame a «new shopping experiences» that several brands strive to design for their customers. And to achieve this goal, companies are migrating towards a digital business model.


ADVANTAGES OF A DIGITAL BUSINESS

This migration to digital is no longer a choice, it has became a need for survival. The closure of shopping malls around the world, the phenomenal increase in online sales in e-commerce channels (such as Amazon, Ebay, Alibaba or Mercado Libre) compared to a significant reduction in sales in physical locations, are global trends that confirm that the digital model provides significant competitive differences for companies that adopt it.

Digital commerce  allows businesses to connect with the consumer in a personalized way, increasing loyalty in addition to increasing sales in both channels: physical and online. There is a strong trend to make an online experience  resemble the physical store and to create a more “real” shopping experience, in which the customer feels safe.

The online store is the single most important sales channel for most businesses nowadays. Physical channels and the traditional model are more expensive and less effective, because businesses must be where their client is, and that is, ON THE WEB.

Why invest in your online presence? 5 advantages.

The main reason for digitization of a business is that it allows:

• Massive increase in sales: Traditionally bricks and mortar zone, such as Latin America, are also seeing the shift. The Argentine Chamber of Electronic Commerce registered in 2017 a 52% increase in online sales. The possibility of offering products online allows businesses to increase the brand awareness, reach many more potential clients and expand into new markets at a lower cost.

• Reduction of costs and operating times. Changing to a digital business model facilitates  integral management.. From the receipt of the order, to the shipment to the customer and even managing the relationship with the client after the purchase. Digital systems integrate departments, from sales, production, logistics, etc.

• Sell ​​more intelligently: The main difference between the traditional business model and the digital one is the amount of information that we can obtain from the customer;  quickly and efficiently. By just visiting an online store, you can know the interests, schedules, ages and geographical areas of the customers, as well as the sales trend of an item. A personalized offer increases the probability of making the purchase by 60%, according to The Economist.

• Brand development: digital presence has an important impact on branding, not only because it allows us to expand its influence, but we can use customer information to personalize our offer, develop new products or create a new service.

• Combining information and data from both channels: Use the information provided by our digital channel to also optimize our services in the physical store. From the product range to personalising the customer experience, we can use the data obtained from all sources to improve efficiencies, save resources, and create new business opportunities.

Results?

The digitization of a business can provide  a strategic competitive edge. Although competition is already high in the online channel, there are different ways to apply it

Several companies in the retail sector, such as Amazon, Zara, Apple, Carrefour, Massimo Dutti, McDonalds, etc., are at the forefront of this digital race.

How to implement it in your company?

A digital business transformation can be designed and implemented progressively and efficiently.

In some cases the priority may be  to develop a digital channel, an E-Commerce, and for others it might be  implementing an ERP or  starting to collect information using  IoT or Big Data,. There are many solutions available from developing personalised systems or using SaaS type software.

(Find out more about  IoT and ERP Systems or SaaS here)

At Viveo we offer consulting and management for a digital transformation of your business. We have helped numerous businesses reach new levels of performance. Ask us how we can help!

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