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Don’t fall into the trap of measuring everything when transforming your business to digital: there are certain numbers that will tell more about your journey than others. Finding these keys will open the road to success.
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Administrative expenses
Cost saving is the ultimate argument to support a digital transformation strategy. Which executive doesn’t like to see the shrinking numbers in the budget for expenses?
One major category that is soon to provide spectacular results is that of the administrative expenses. As businesses start to digitize their operations, they necessarily automate many of the tasks and cut down on paper use, even totally eliminating them from certain workflows.
The savings on customer communication (invoices sent in emails instead of per post, announcements pushed to smartphones in notifications instead of flyers, etc.), reporting (mobile application instead of paper-based solutions) or assistance (a virtual PA instead of a human one) are tremendous.
Operating expenses
The other type of expenses that will be affected by the transformation to digital processes is that of the operating expenses.
For the makers of tangible goods, digitally controlled production, monitoring, maintenance, and distribution result in simpler, more streamlined workflows. After all, cutting on inefficiencies and down times can earn hard cash for the business. Digital processes also allow the companies to create new, innovative services that cater more to the digital customers’ needs.
For service companies, the savings come mainly from payroll: the same workforce being more productive, the same hours better distributed, the less hiring necessary. When the lines of human resources costs are in decline alongside the same or improved profitability, the business is right on track with its digitization efforts.
Sales of goods or services
There is one thing more appealing than cost savings: and that is sales figures going up. The implementation of a digital strategy, when successful, will surely steer the numbers in that direction.
The reasons? For one, the customers are more satisfied. For them, your digital strategy translates to promptly available product information, easier purchases, more payment and returning options, quicker answers to their questions through online customer service. And what do satisfied customer do? Yes, they spend more on your products.
The other reason is more technical. When the operational processes are streamlined and simplified, sales agents become more effective in their day-to-day activities. Supported by real-time data coming from the company database and instantly available on digital devices, they can have more client meetings, give better quotes, and close deals more quickly.
Employee satisfaction
At first, it might seem like the hardest to measure but, in fact, this soft metric can be translated to actual numbers if we take a closer look.
Technically, access statistics of digital corporate systems and enterprise applications will show if the employees are satisfied with the new tools and processes: if they are, they will use them without any further prompts or incentives. Just because it makes their job easier or more enjoyable. Don’t underestimate the power of satisfaction: it is a huge part of success and a proof on the return of the strategic investments. The opposite (dissatisfaction), on the other hand, cause more pain than gain for everyone.
Employee satisfaction can also be measured by looking at the retention figures. Introducing digital tools and processes, ideally, come with the advantage of people wanting to stay in their jobs. So to speak, two birds are hit with one stone, as your business becomes innovative and the employer brand stronger at no additional costs. Moreover, a lower employee turnover means lower hiring costs – a real game-changer these days.
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