Navigating Digital Transformation for Your Small Business

Transforming Small Businesses in the Digital Era

You’ve probably come across phrases like “going digital,” “digital transformation,” or “digitalization.” In practice, the way an organization digitizes varies from one business to another. Essentially, it involves the transition from a traditional offline setup to one that excels in the digital realm.

When it comes to digital transformation, we can’t overlook data. In fact, it’s become a catalyst for companies looking to get a leg up on their competition. With modern technology, we’re able to collect more data than ever before, which allows us to better understand our customers and properly align everything from our offers to our messaging with their needs and desires.

We even have the ability to “see” into the future thanks to predictive analytics. With this cutting-edge technology, businesses can anticipate data trends and stay ahead of the curve when it comes to data evolution.

So, how can small businesses tap into the power of digital transformation to remain relevant and future-proof their businesses?

How Digital Transformation Affects Small Businesses

Small businesses no longer have the luxury of choosing whether or not they want to embrace digital technology. It’s become a necessity.

But with artificial intelligence (AI) at the forefront of technology, many small businesses feel overwhelmed by the idea of a digital transformation, despite the undeniable benefits.

One of the best ways for small businesses to utilize technology is through data analysis — the process of studying large and diverse data sets to gain helpful insights. This practice allows businesses to know where they’re currently getting customers from, how and when these customers shop, what they’re purchasing, and even what type of device they’re shopping on.

Once you’ve analyzed the data, you can have a more informed approach to how you market to potential customers and even what you offer them. This type of information can completely reshape your business and improve your bottom line.

Applying Data Alchemy to Your Business Plan

It’s far too easy for organizations, especially small businesses that may be spread thin already, to collect data and never do anything with it. Here’s how you should approach data alchemy — the practice of transforming raw data into valuable insights.

Data Strategy

Before you even begin analyzing your data, you need to define your strategy. A well-defined strategy can help you move your marketing and customer engagement forward while identifying any fragments in your current processes.

Your strategy should include data (of course), technology, analytics, and delivery, and have the ability to work both on and offline. You should include input from your entire team to make sure you’re considering all objectives and needs.

Analyzing Data

You’ve collected your data. Now what? It’s time to roll up your sleeves and dig in.

When you analyze data, it’s important to examine significant and diverse data sets from various sources. Whether it’s data from your website, social media ads, your digital cart, or your email campaigns, piecing together the information you can from your platforms can help you when it comes time to make your next big decision.

Data Fragmentation

When a customer interacts with your business, they expect a cohesive experience. For instance, they want to find you on social media, click on your website, then visit your store and feel like everything is consistent.

One of the best ways to create a modern customer experience is by addressing data fragmentation — aka utilizing technology to consolidate, organize, and curate your data so your customers feel seen and recognized across any touchpoint.

Utilizing the Data

Data that isn’t being used serves no purpose. Any large (and most small) decisions within your business should be made using insights gleaned from your data.

You have to know how to enable, activate, and implement the data that truly matters in a way that’s effective and will make an impact on your business. Whether you opt to partner with a digital data transformation partner who can advise you on how to optimize your data or dive in yourself, it’s crucial you put your data to use.

What your digital transformation will look like depends on your business. The journey is unique for every organization. But the result should look the same: tapping into digital tools to benefit and improve your customer experience from the very first click to purchase — and beyond.

Digital transformation is an ongoing process. You have to remain flexible and learn how to embrace new technologies. Don’t be afraid of diving into innovation or embracing data; it’s what will keep you ahead of the competition.

Content created and provided by Extu.