Planning your New Year’s resolution for digital strategy investment

Many organizations struggle to get the right focus for investments in digital experience, and we often get questions on how to prioritize different initiatives. In my view, these decisions need to be based on your business model and the type of digital strategy that implies.

Analyst SiriusDecisions has developed a method that is really helpful to understand and assess your digital business type. Using this method, you can develop a digital strategy grounded in data and analysis, and you can make the call on where to begin testing new ideas based on things you probably know off the top of your head.

 

According to SiriusDecisions, there are three main factors that determine where you should focus your efforts. These factors are:

  1. Level of differentiation – is your product or service highly commoditized, highly differentiated, or somewhere in between?
  2. Average sales price – are you a low-cost or high-cost offering?
  3. Sales strategy – do sales rely mostly on digital self-service, a high level of human interaction, or is it a hybrid?

In the above graph, companies that fall in the center are those that are commoditized, have a low selling price, and are primarily self-service. These companies will likely want to invest more in promoting their offering and optimizing a fully self-service storefront. In addition, these "Digital First" organizations should optimize their commerce workflow by reducing steps in that experience.

Companies that fall in the opposite end of the spectrum are the "Digital Support" group. They have highly differentiated offerings, a higher selling price and a more customized sales experience. These companies should focus on optimizing the content and tools used by the sales team. This includes more quickly and accurately identifying qualified leads, then working through the entire cycle to accelerate the time to close. This process may involve, for example, developing digital tools that help the consumer learn more about the product during the sales process, as is done in the automotive industry.

Finally, the companies that fall somewhere in between the above Digital First or Digital Support groups, the "Digital Hybrids", will likely need a more tailored approach depending on the unique objectives of the business. These companies are typically high in one or two of the above areas but low in the others. Depending on the combination of traits, a Digital Hybrid may benefit from an investment in both the people and technology to support personalization, customized ordering tools, or retargeting.

For a more in-depth look at this approach of identifying your company’s digital type and best strategy, watch Episerver’s webinar recording, hosted with SiriusDecisions, on January 27.

Watch the recording and get a copy of SiriusDecisions' business type assessment model!

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