{"id":25215,"date":"2019-02-28T12:38:43","date_gmt":"2019-02-28T12:38:43","guid":{"rendered":"https:\/\/digileaders.com\/?p=25215"},"modified":"2019-12-23T16:39:35","modified_gmt":"2019-12-23T16:39:35","slug":"how-digital-can-power-businesses-to-punch-above-their-weight","status":"publish","type":"post","link":"https:\/\/digileaders.com\/how-digital-can-power-businesses-to-punch-above-their-weight\/","title":{"rendered":"How digital can power businesses to punch above their weight"},"content":{"rendered":"
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In today\u2019s digital world, some of the smallest, leanest businesses can achieve widespread exposure and appear much larger than they actually are, competing alongside long-established, high-volume and high-staffed operations.<\/p>\n

Instagram famously had just\u00a013<\/strong>\u00a0employees when it was bought by Facebook for\u00a0$1bn<\/strong>. WhatsApp had\u00a055<\/strong>\u00a0employees when it was sold for\u00a0$20bn<\/strong>.<\/p>\n

InsurTech Lemonade uses an \u2018Automation Index<\/a>\u2019 to demonstrate how its use of technology and automation supports scale and efficiencies. Lemonade claims that it sells\u00a02,500<\/strong>\u00a0policies per employee, more than\u00a05x<\/strong>\u00a0its larger competitors when you include agents alongside staff.<\/p>\n

Larger businesses can continue to grow and become more effective too, even when the category they\u2019re in is contracting, with more to gain from the smallest of changes.<\/p>\n

Digital is at the heart of accelerating growth in such businesses. It\u2019s no wonder when you consider the amount of time we spend online as consumers. Ofcom\u00a0reports<\/a>\u00a0that UK Internet users spend a total of one day a week online (24<\/strong>\u00a0hours), more than twice as much as in 2011. And\u00a062%<\/strong>\u00a0of that time was on mobile devices.<\/p>\n<\/div>\n<\/div>\n

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Retail bellwether Next reported\u00a0net growth<\/a>\u00a0in Q4 2018 despite a struggling retail sector. However, this was due to a\u00a015%<\/strong>\u00a0surge in online sales against an in-store sales decline of\u00a09%<\/strong>.<\/p>\n

Lloyds Banking Group\u00a0reports<\/a>\u00a0that UK SMEs with low digital capability could unlock up to an additional\u00a0\u00a384.5bn<\/strong>\u00a0turnover if they were to develop high digital capability.<\/p>\n

Accenture Research and Oxford Economics said that the\u00a0digital economy represented\u00a022.5%<\/strong>\u00a0of global GDP<\/a>\u00a0in 2015 and projected this rising to over\u00a025%<\/strong>\u00a0in 2020, with smarter use of digital generating\u00a0$2tn<\/strong>\u00a0of additional economic output over this period.<\/p>\n

Another\u00a0report by IDC<\/a>\u00a0forecasts that the digital economy in the Asia-Pacific region will represent a whopping\u00a060%<\/strong>\u00a0of its GDP in 2021. IDC also\u00a0forecasts<\/a>\u00a0that by 2022,\u00a080%<\/strong>\u00a0of enterprise revenue growth will depend directly on digital offerings and operations.<\/p>\n

By better harnessing digital you can grow your reach, revenue, reputation and profitability whatever size of business, sector or level of digital maturity.<\/p>\n

Digital presence and prominence<\/h4>\n<\/div>\n<\/div>\n
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Digital presence isn\u2019t just about having a website, it\u2019s about being visible and standing out in all the digital places people go – when searching on maps, browsing social media, reading news and blogs, looking at reviews and tapping on apps.<\/p>\n

In a purely physical world, you\u2019re limited to your own stores or business premises. If you can afford it you might pay for presence elsewhere too or broker partnerships with other businesses and organisations to extend your reach.<\/p>\n

In digital, you can be much more omnipresent without the cost of setting up and maintaining physical exposure.<\/p>\n

Paypal is so ubiquitous now, integrated into virtually every ecommerce experience, yet it\u2019s barely visible offline.<\/p>\n

Visibility isn\u2019t enough though – impressions without clicks are just like a high street presence without footfall. You need to stand out and reflect what people want.<\/p>\n

Every business can grow their presence, prominence and engagement in digital. What share of attention does your business attract?<\/p>\n

Located everywhere<\/h4>\n<\/div>\n<\/div>\n
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If you\u2019re limiting your business to your physical surroundings you\u2019re missing out on a vast national and international market.<\/p>\n

Small businesses often start out being local but it doesn\u2019t have to be that way.<\/p>\n

For example, UK sales of Scotch whisky account for just\u00a06%<\/strong>\u00a0of\u00a0global sales<\/a>.<\/p>\n

The Premier League is now considered\u00a0Britain\u2019s biggest export<\/a>\u00a0according to Populus, with global audiences far exceeding domestic ones.<\/p>\n

Ecommerce gives you a shop front wherever your customers are. Work with partners if you need to for distribution, fulfilment and localisation.<\/p>\n

Every business can be a global business. How can your customers buy from you wherever they are?<\/p>\n

Customer experiences to rave about<\/h4>\n

There is no direct correlation between business size and customer satisfaction. In fact, the largest businesses are rarely rated highest by customers.<\/p>\n

YouGov\u2019s UK Buzz Rankings 2018, measuring the public\u2019s perception of brands, puts Aldi and Lidl\u00a0far above<\/a>\u00a0any other supermarket, despite being the 5th and 7th largest respectively.<\/p>\n<\/div>\n<\/div>\n

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Market share data from Kantar based on 12 weeks ending 30th December 2018; Buzz Ranking data from YouGov for top 5 ranked supermarkets only<\/em><\/p>\n

The \u2018Big 6\u2019 energy firms in the UK, with\u00a075%<\/strong>\u00a0of the market, have shockingly poor customer service ratings, averaging a Trustpilot score of just\u00a01.8<\/strong>\u00a0out of 10. Many of the smaller, newer firms have much higher ratings.<\/p>\n<\/div>\n<\/div>\n

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Trustpilot scores for selected UK energy companies as of February 2019<\/em><\/p>\n

McKinsey\u00a0reports<\/a>\u00a0that brands improving customer journeys see revenues increase by as much as\u00a010-15%<\/strong>\u00a0while also lowering the cost to serve by\u00a015-20%<\/strong>\u00a0(McKinsey)<\/p>\n

Technology can enable an enhanced customer experience but simply investing in tech doesn\u2019t mean you\u2019ve cracked the experience. As Steve Jobs famously said:<\/p>\n

\u201cYou have to start with the customer experience and work backwards to the technology\u201d<\/p><\/blockquote>\n

The influence of peers on customer attitudes and behaviour is enormous. Despite reports of gaming the system, including\u00a0The Shed at Dulwich<\/a>\u00a0making it to top restaurant in London on TripAdvisor, genuine reviews have a significant impact.<\/p>\n

With reviews being openly accessible to everyone, it pays to actively encourage customers to share their experience and for you to engage with reviews – both good and bad.<\/p>\n

Digital can elevate the experience you provide and amplify the word-of-mouth sharing of that experience to support both retention and acquisition.<\/p>\n

Are you delivering an experience that people rave about?<\/p>\n

Data-driven operations<\/h4>\n

Data is the lifeblood of a sustainably successful business.<\/p>\n

If you\u2019re blind to data, you don\u2019t know who your customers are, how to reach them, what engages them, how to keep them coming back and how to evolve what you do.<\/p>\n

Netflix uses consumption data to create personalised experiences and also develop content that works.<\/p>\n

Tesla collects billions of miles of human driving data to improve automated driving intelligence. Waze has\u00a0reportedly logged<\/a>\u00a022.5bn<\/strong>\u00a0kilometres from\u00a0100m<\/strong>\u00a0active monthly users to provide the most reliable real-time driving maps.<\/p>\n

Sea Hero Quest is a mobile game that\u2019s generated the equivalent of more than\u00a012,000<\/strong>\u00a0years of lab-based research into dementia.<\/p>\n

Are you harnessing data sufficiently to fuel your business? Collect, interpret and feed it back to improve your products, experiences and effectiveness.<\/p>\n

Digital products and services<\/h4>\n

With physical products and services your ability to scale and grow your margins are limited. Traditional innovation or product development is also costly and time consuming.<\/p>\n

With digital products and services you can add new customers and extend revenues from existing customers for a fraction of the costs.<\/p>\n

BrewDog developed a\u00a0video-on-demand subscription service<\/a>\u00a0to extend the interactions (and revenues) the brand has with its customers.<\/p>\n

Peloton provides a\u00a0digital service<\/a>\u00a0for its members to stream live and on-demand indoor cycling classes to their home.<\/p>\n

What kind of digital products and services and new revenue streams you can create that go above and beyond your physical ones?<\/p>\n

Beyond your category<\/h4>\n

Punching above your weight isn\u2019t simply about growing share of voice or attention within your market or category. Boundaries are blurring as brands compete in new ways.<\/p>\n

Adidas considers\u00a0Netflix as competition<\/a>.<\/p>\n

Netflix says its competition is anything but TV (most recently Fortnite<\/a>), but ultimately it\u2019s\u00a0sleep<\/a>.<\/p>\n

Your category doesn\u2019t define your business. It\u2019s always hard to grow market share and if you\u2019re in a declining market, you\u2019ll be fighting against the tide.<\/p>\n

Be bold, be different, create your own space. Join other categories or forge new ones. Digital opens up innovative ways to establish your brand outside of traditional boundaries.<\/p>\n

Remaining relevant<\/h4>\n

It\u2019s easy to punch above your weight for a short amount of time.<\/p>\n

Making this sustainable is less straightforward, especially if you feel like you put everything into the last effort. Innovation is a constant demand, it can\u2019t be something you dip in and out of.<\/p>\n

Digital and a culture of innovation should be embedded throughout your business. Even with this, change can be slower than you\u2019d like or the market demands. Automation is the ultimate trick in doing more with less. Businesses of all sizes are now finding ways to automate what they do and introduce machine learning to remain relevant and grow.<\/p>\n

Get punchy and grow<\/h4>\n

Digital can provide all businesses with the power to punch above their weight.<\/p>\n

Rewrite Digital<\/a>\u00a0equips you to punch above by identifying your greatest opportunities for growth and profitability and putting them into action.<\/p>\n

Get started with your\u00a0<\/strong>free assessment<\/strong><\/a>, giving you a score for your digital maturity and effectiveness across 5 key areas: Business model, Business performance, Customer satisfaction, Digital experiences and Customer data.<\/p>\n

This article first appeared on\u00a0LinkedIn<\/a>.<\/i><\/p>\n

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More thought leadership <\/i><\/a><\/span><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

In today\u2019s digital world, some of the smallest, leanest businesses can achieve widespread exposure and appear much larger than they actually are, competing alongside long-established, high-volume and high-staffed operations. Instagram famously had just\u00a013\u00a0employees when it was bought by Facebook for\u00a0$1bn. WhatsApp had\u00a055\u00a0employees when it was […]<\/p>\n","protected":false},"author":11,"featured_media":25218,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"class_list":["post-25215","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","region-london","topic-ai","topic-data-analytics","topic-smes"],"acf":[],"yoast_head":"\nHow digital can power businesses to punch above their weight | Digital Leaders<\/title>\n<meta name=\"description\" content=\"In today\u2019s digital world, some of the smallest, leanest businesses can achieve widespread exposure and appear much larger than they actually are\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/digileaders.com\/how-digital-can-power-businesses-to-punch-above-their-weight\/\" \/>\n<meta property=\"og:locale\" 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