The emergence of new technological breakthroughs has changed the way customers behave. Now we don’t have the patience to wait more than 4 seconds for a website to load when we visit it. In today’s fast-paced world of digital transformations, many customers expect businesses to have user-friendly websites for mobile and desktop experiences. However, many businesses fail to implement a digital transformation, losing their clients and harming their reputations. In addition, this slower digital transformation rate among companies generates a digital gap that hurts a company’s competitiveness.
Digital Gap Management: The Ultimate Formula To Boost ROI
Let’s have a closer look at digital gap management and understand how to boost the ROI of your business.
What is Digital Gap Management?
Digital gap management uses advanced analytics, machine learning, and big data to exceed the speed of changing customer behavior and generate tangible business value.
Digital gap management identifies and closes the gap between your organization and your customers. So how to manage the digital gap?
- Identify and close the digital gap — Understand what your customers expect from you now and in the future.
- Understand the company’s culture — Run surveys or one-one interviews to understand your business and culture to be consistent in the future.
- Know your customers — You won’t be able to assess the digital gap without understanding your customers. Understanding your client’s needs and wants can lead to insights that can help you find a problem that no one else in your industry has addressed, opening up a greater potential for your business.
- Have a digital strategy — Your customers get many notifications, and email feeds over the day. Brands find it increasingly difficult to break through the noise and reach new audiences. This is why developing a digital strategy requires thoroughly examining your services, customers, and industry. You’ll need to determine which channels will best assist you in reaching your digital strategy.
- Define KPIs — After defining your business strategy and objectives, define your KPIs.
- Implement AI innovations — To offer large-scale customer support, you must implement current AI and machine learning trends. AI and machine learning can assist in identifying the risks of customer churn and determining which activities can help minimize those risks and boost customer experience.
You need to manage the digital gap between your business and customers whenever you want to boost ROI, increase sales, improve conversions, generate traffic, and build trust. So let’s focus on boosting ROI by managing the digital gap.
What is ROI?
ROI is a prominent financial metric for estimating the possibility of making a profit on a given investment. Each organization can benefit from ROI as it helps determine how well your business is doing and what aspects need improvements to reach your goals.
How to Calculate ROI?
The ROI calculation is very simple: (final value – initial value) / initial value * 100%.
You profit if you get a positive number; if not, you lose money. To boost ROI, you can opt-in for professional digital marketing services.
Sometimes, calculating ROI is not as simple as it seems. For example, you should often consider stress, time, hidden costs, and fees.
Here are some common steps for measuring and improving ROI:
- Determine the project and consider business goals – To better align your business model with market conditions, you need to understand how to use new or existing technology. Determine how your projects will address your business goals. Make a list of the business goals that the project should address. Will it lower costs, improve customer satisfaction, generate revenue, or improve employee productivity? Have one specific digital gap management goal for a particular period. Determining one goal helps companies develop specific strategies and implement relevant measures.
- Understand investment and value metrics – Technology and services, such as applications, network infrastructure, security, customer support, direct sales, digital marketing, etc., should all be included in the investment statistics. Determine the metrics that will be used to demonstrate the return on the budgeted investment.
- Establish a deadline – Stakeholders that support these projects are rarely patient, and projects often take six months to finish. As a result, when calculating metrics, start by recording the baseline statistics so that you can compare them once the project is over.
How to Boost ROI?
Now that we clearly defined and understood digital gap management and ROI, it’s time to dive deep into the actuators for improvement.
Manage The Digital Gap
Managing your company’s digital gap is essential. Companies must react quickly and become more adaptable to changes. In this digital age, attracting and maintaining consumer loyalty is increasingly difficult. You should recognize and close gaps to thrive in today’s ultra-competitive digital market. It’s critical to thoroughly understand your customers, including what they want from you today and in the future. You’ll also need a thorough understanding of your current business model, objectives, strategy, etc.
You are future-proofing your company and gaining a competitive advantage that will undoubtedly result in improved ROI, increased sales, and new revenue streams by taking the necessary steps to close the gap. You should consider having some of the following on your list:
- Conducting a digital audit – Analyzing how your digital channels perform will assist in understanding if your digital strategy works well and meets your customer expectations. The more data you have at your disposal, the better you can understand your current digital shadow or electronic footprint. This is critical information to have when developing your new digital strategy. After completing a digital audit and reviewing the data, you’ll start to uncover patterns you hadn’t noticed. This will enable you to create a clear roadmap for improving your digital performance.
- Re-discovering your customers – Without knowing your customers, you won’t be able to assess your company’s digital gap. As a result, a thorough understanding of your client is required to meet your strategic business goals. First, to attract, engage, and keep customers, you must leverage the data available in your business to gain a deep insight into your audience. Take advantage of the micro-moments methodology, during which users opt for their devices to learn, watch, or buy something. And these are the perfect moments when you, as a brand, should try to grab your customers’ attention and help them, influencing their actions.
Plan Ahead of Time
In every aspect, planning is one of the most effective ways of achieving success. Plan ahead of time to create your ROI model. Use estimated figures to ensure you’re tracking all of the relevant metrics. It would be too disappointing if you realized that you should have been collecting data before the project ended.
Sometimes, owners of IT companies hurry to begin a project and forget to take some time to gather business unit requirements or assess the time it takes to educate employees or test applications. This process leads to the failure of projects. And when they see the ROI figure, they understand that the estimated cost and time exceeded their expectations. That’s why planning ahead of time and setting clear and realistic goals will provide a smooth project completion.
Next, you need to be informed about the new technology advancements and consider your customers’ needs and wants when implementing them. One of the most common reasons projects fail to deliver the expected ROI is that employees or consumers are unaware that a new technology or process can provide benefits. The success or failure of projects is largely determined by culture, as the greater the number of people affected by new technological trends, the greater the expected ROI.
Select Technologies Wisely
The technology you select has a huge impact on ROI. To increase your ROI, don’t just go with the cheapest option. You may get more bang if you spend money on an easy-to-manage application. The initial investment will be more, but the ongoing costs will be reduced, resulting in a higher ROI over time.
Businesses can use ROI to see how effectively their use of capital and investment improves their transformation operations. So, save this blog for you to come back to when you decide to manage the digital gap and boost your ROI.