Digital now really the most important sales factor
This year, more than 50% of global sales will be digitally influenced. Digital media, and the mobile phone in particular, have become an integral part of our society. The impact on total sales of businesses cannot be underestimated. Yet many directors and companies are still struggling with this. How do you deal with this in the right way and how do you create an optimal digital business? What steps can you take now to make a difference tomorrow?
Five years ago (end 2015), Forrester asked nearly 500 executives of organizations with more than 250 or more employees to estimate the total revenue generated by their business through digital products/services or products sold online (e.g. eCommerce, advertising, sales of apps, data). Based on their responses, analysts at Forrester predicted how much of total sales will be affected digitally. Of the total sales of services and products, both sales to consumers and sales to businesses, 47% would be affected by digital media by 2020. For various industries, these percentages are respectively slightly higher or lower: FMCG around 45%, Business Services around 49%, and Retail around 58%. In short, almost 1 in 2 sales made are influenced digitally. This seems a very conservative estimate, especially now we know that in 2018 already more than half (55%) of all retail sales in Europe are digitally influenced. With the further acceleration of digitisation in business, and in particular mobile digitisation, as well as among consumers or customers, this percentage will probably already be much higher than earlier predictions.
Are we ready?
We are now in the year 2020, but it seems that companies are still struggling with digital disruption and that drivers are not ready for it.
Only one in four CEOs have a clear digital vision. Only 20% of companies are sufficiently equipped and prepared for the continuous digital disruption. And, in addition, almost 80% are not yet ready when it comes to setting up the necessary, organisation, culture, employees, processes and technology. Let’s take a closer look at the various topics.
For many organizations there is still a lot of work to be done, but fortunately it is not (yet) too late to change this! However, it is necessary to implement the right measures quickly or more quickly.
The most important factors that determine the success of a digital business, according to Forrester, are (1) delivering exceptional customer experiences, (2) creating new sources of value for customers and (3) securing understanding and leadership among the leaders and managers within the organization of digital business.
What can you start tomorrow?
- Make the customer number 1 again
- Hold up a mirror to yourself as if you were the customer yourself and experience how your customer experiences your business
- Dedicate time to it, so roll up your sleeves and put on your boots and start
- Do a search for your own company, or dive into your website.
- Take the lead and set up a task force with internal and external specialists and experts
- Focus on the most valuable business activities and make them small when you start a digital transition
- Review your current value chain – starting and ending with your customer
- Go into the depths with your team and your desks and challenge them and put things on edge
- Dare & make choices – not both or all at once
- Translate digitally to everyone’s personal goals in the organization.
- Also steer on digital KPIs in your management meetings
Of course, these types of activities are not always immediately practicable due to busy schedules and other issues that need to be followed up first. But realise that potential customers nowadays also have busy schedules and other things that need to be followed up on. So if a potential customer knocks on your door with an interest or purchase intention, you open the door, right? We understand that this is sometimes difficult. Especially when it comes to digital business operations, where experience and expertise are still lacking. Our business guides at TheNewTomorrow will be happy to help you open the doors and let your business grow or flourish and not leave any money lying around.
 Source: Forrester The State Of Digital Business, 2015 To 2020 – 2 November 2015, https://www.forrester.com/report/The+State+Of+Digital+Business+2015+To+2020/-/E-RES119838#,
 Source: Forrester Digital Influences Over Half of In-Store Sales in Europe – 27 Februari 2018, https://go.forrester.com/blogs/digital-influences-over-half-of-in-store-sales-in-europe/