We like to think of strategy as the allocation of resources to change the profit model. Digital strategy should be looked at through the same lens. Becoming digital is not just about having a great website, setting up an e-business, or deploying next generation software. It is about harnessing digital technologies to create and capture profits in new ways.
Simple things like process automation are the low hanging fruit, optimizing repetitive tasks to improve efficiency and accuracy, while freeing up valuable human resources to perform more creative tasks. Attacking some of these simpler tasks can help you get into the groove of Agile development, with MVPs, and rapid fire iteration.
Advanced reporting is an often overlooked concept of digital strategy, but it should come first since this reporting is what is going to provide the insight on where the opportunities lie.
With the proper infrastucture in place and a proven development methodology, we can begin to attack larger opportunities, carefully measuring to ensure results.
In looking the order history, we noticed we were not getting a significant repeat purchase rate. Understanding the economics behind the customer acquisition cost, we settled in on increasing this rate. Carefully studying and optimizing the post sale experience, we implemented features to improve the post sale experience.
The results were astonishing. In a period of 60 days, sales had increased by 50%, of which most of that growth was coming from repeat business.
Frequently, the most profitable actions are not complicated, just targeted, but it was the setup of the reporting that enabled us to see what needed to be done.