October 31, 2018
It’s hard to imagine there is an active business today that doesn’t have some level of digital connection and engagement. But the truth is that how business leaders define engagement and the level in which they invest (time, money, staff, etc.) in that engagement is an incredibly wide range.
Deloitte did a study for Connected Small Business US, which was commissioned by Google to explore the levels of digital engagement among small businesses (250 or fewer employees) and the impact of each level.
The study determined that there were general levels:
- Basic (no website/no social media presence)
- Intermediate (simple website/basic digital marketing)
- High (advanced, mobile-ready website/multiple social channels)
- Advanced (use of data analytics/mobile apps)
As the researchers reviewed the activity level and the outcomes that aligned with each of the four levels of engagement, they came to some very interesting conclusions.
Digital engagement increases revenue. Seventy-seven percent of businesses in the advanced category reported expecting revenue growth over the next year—almost double the percentage of businesses in the most basic engagement level. The reason the advanced level businesses were confident in the potential of growth is because forty-five percent of them had already experienced revenue growth over the past year, compared to only twelve percent of businesses identified as having a basic digital engagement. Thirty-two percent of the organizations in the high category reported revenue growth.
Digital engagement increases employment needs. When a business experienced increased revenue, it only makes sense that they’d need a larger workforce. So no surprise, the category of companies that reported larger percentages of revenue growth (high and advanced) also reported an increase in employment growth. The research also pointed out that people employed by a digitally savvy company “tend to be relatively more productive, with the average revenue per employee at digitally advanced businesses being two times as high as small businesses with a basic level of engagement.”
Digital engagement creates new products and services. Over the past twelve months, businesses at the basic level had less than a ten percent chance of introducing a new product or service. On the flip side, almost seventy percent of the most digitally advanced companies reported did. New channels mean new opportunities, and if you’re not there, you can’t take advantage of them.
So what does this mean for your business? It means that maintaining just the “table stakes” level of digital engagement is costing you opportunity, market share, and money. If you are at that level, which was defined as just having a simple website and not really using effective email marketing, social media or exploring the data that these tools can give you, you need to recognize the consequences. This should not come as a surprise to you but perhaps the outcomes that this study points to can serve as the wake-up call to drive you to explore how your business can step further into the digital realm.
This study emphasizes what common sense has told us for some time. The way we do business has changed. The expectations that the marketplace has for us have changed. We may be the only element that hasn’t yet changed.
For every business, whether you only serve a local audience or an international customer base, embracing digital strategies is a business must. Tools like marketing automation, social media, mobile readiness, and letting the data help you determine what your prospects are interested in and what you can offer to encourage trial and conversion is more business survival than anything else.
Today, as the research clearly demonstrates, businesses that ignore that truth are simply behind in revenue, growth, and innovation. But pretty soon, without making some changes, they may just not exist anymore.More