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Digital Strategy: What is it? Why it is important?

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28th Mar, 2023
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Digital Strategy: What is it? Why it is important?

Devising Digital Strategy for Businesses: What is it and Why is it Important?

In today’s fast-paced digital world, businesses and organisations must have a well-defined digital strategy to remain competitive and relevant. With a CAGR of 16.5% during the forecast period, the worldwide market for digital transformation is predicted to increase from $469.8 billion in 2020 to $1,009.8 billion in 2025. 

As more and more people are turning to the internet to research products and services, make purchases, and connect with others, it’s clear that the digital landscape has become a crucial part of our daily lives. 

According to Statista, the global inventment in digitalisation is anticipated to nearly double between 2022 and 2025, rising from 1.8 trillion to 2.8 trillion dollars. Following the ascending trends, devising a digital business strategy is crucial for organisational success.

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Let’s explore the importance of digital strategies and check out some actionable tips for creating and implementing a successful digital strategy.

What is a Digital Strategy?

An organisation’s digital strategy determines how to use digital technologies and channels to accomplish its goals. It involves a systematic approach to identify digital opportunities, allocate resources, and develop tactics to execute the plan effectively. 

A digital business strategy can include various elements, such as –

  • Website design and development,
  • Social media marketing,
  • Search engine optimisation (SEO),
  • Email marketing,
  • Mobile marketing, and more. 

The ultimate goal of a digital business strategy is to enable organisations to use digital technologies to – 

  • Connect with the target audience,
  • Build brand awareness,
  • Generate leads,
  • Increase conversions, 
  • Grow their business.

What does it include?

The specifics of a company’s digital strategy may vary depending on its industry, size, and growth objectives. However, many of these strategies often include the following elements:

Source

Advertising

Advertising is a crucial part of digital strategy, using paid channels to reach the target audience. Tactics such as pay-per-click (PPC), display, social media, and video advertising are commonly used. It enables organisations to promote their products and services, increase brand awareness, and generate leads to drive business growth.

Digital Marketing

Digital marketing is an essential component of digital strategy encompassing various tactics like SEO, content marketing, email marketing, social media marketing, and more. It helps organisations establish brand awareness, generate leads, and drive conversions by engaging with their target audience through digital channels.

Customer Interaction

Customer service teams may deliver a pleasant user experience by having open channels for client feedback and involvement. Customers’ interactions might also provide crucial information for targeting particular demographics or improving products. According to a study, 67% of customer interaction will be done digitally by 2030; hence implementing an optimised digital strategy predicts a fruitful future for organisations. 

SEO

SEO, or Search Engine Optimisation, is a crucial component of any digital strategy as it helps improve a website’s ranking on search engines. This increases organic traffic, visibility, and credibility, resulting in better engagement and conversions.

E-Commerce

E-commerce is an essential component of a digital strategy that enables businesses to sell products or services online. E-commerce platforms provide an efficient and convenient way for customers to shop, while businesses benefit from increased reach, reduced overhead costs, and improved customer engagement and retention.

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Reasons Why Having a Digital Strategy is Important

According to Foundry, organisations are going to spend approximately $16.5 million on digital transformations over the coming years. To understand why companies all over the world are adopting this strategy, let’s understand the benefits of digital strategy:

Increased reach and visibility

A well-designed digital strategy can help businesses reach a wider audience and increase their visibility. This can be achieved by optimising digital channels such as search engines, social media, email marketing, and mobile apps. 

Improved customer engagement

Digital technologies can help businesses engage with customers more effectively by providing personalised and relevant content, 24/7 customer support, and easy access to products and services.

Greater efficiency and cost savings

Digital technologies automate processes, streamline workflows and reduce the need for manual intervention, resulting in increased efficiency and cost savings. 

Enhanced data collection and analysis

Digital technologies can provide businesses with access to vast amounts of data that can be analysed to gain insights into customer behaviour, market trends, and performance metrics. This information can be used to make informed decisions and optimise business processes.

Increased agility and responsiveness

Digital technologies can help businesses respond quickly to changing market conditions, customer needs, and competitive pressures. Businesses can leverage social media to monitor and respond to customer feedback in real-time, allowing them to adapt quickly to customer preferences and expectations.

Improved innovation and competitiveness

Efficient digital strategies can provide businesses with new opportunities to innovate and differentiate themselves from competitors. They can use emerging technologies such as artificial intelligence and virtual reality to create new products and services that meet evolving customer needs and preferences.

Better alignment of business goals and digital initiatives

A well-designed digital strategy can help businesses align their online initiatives with their overall business goals, ensuring that investments in digital technologies and channels focus on achieving specific outcomes that drive business growth and success.

Step-by-Step Guide to Creating a Digital Strategy

If you’re looking for a detailed study on how to create a digital strategy, here are some steps that will help you – 

Define your business objectives

The first step is to define your business objectives to analyse how digital channels can help you achieve them. These objectives can include increasing sales, generating leads, improving brand awareness, or entering new markets. With your objectives in place, you can revisit the digital strategy and understand if your goals were met. 

Identify your customer

Next, identify your target audience and understand their behaviours, preferences, and needs. This information can be used to develop content that resonates with them. Exploring different channels to reach and appeal to your customers is important. 

Conduct a digital audit

Run a digital audit of your existing digital assets, including your website, social media profiles, email marketing campaigns, and paid advertising campaigns. This will help you identify strengths, weaknesses, and opportunities.

Develop a content strategy

Developing a content strategy that aligns with your business objectives and target audience can include creating insightful blog posts, videos, infographics, and other types of content.

Choose digital channels

Choose the digital channels that will be most effective for reaching your target audience and achieving your business objectives. This can include social media, search engine optimisation, email marketing, and paid advertising.

Allocate budget

Allot budget and resources to implement your digital strategy effectively. This can include staff, technology, and advertising spending.

Measure and refine

Utilise key performance indicators (KPIs) to measure the effectiveness of your digital strategy and refine your approach based on the data. This will help you optimise your digital marketing efforts over time.

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How to Implement a Digital Strategy?

  • Set clear goals: Define specific and measurable goals aligning with your business objectives.
  • Conduct research – Understand your target audience’s needs, preferences, and behaviour.
  • Develop a comprehensive plan: Develop a plan that outlines the tactics and channels you will use to achieve your goals.
  • Create engaging content: Develop high-quality and relevant content that resonates with your target audience and supports your overall objectives.
  • Optimise your website: Optimise your website for search engines, mobile devices, and user experience.
  • Leverage social media: Use social media to engage with your audience, build brand awareness, and drive traffic to your website.
  • Measure and analyse results: Use analytics tools to track and analyse the performance of your digital strategy and use insights to refine and optimise your approach.
  • Stay updated: Stay up-to-date with the latest digital trends and technologies, and be prepared to adapt your strategy to meet evolving customer needs. 

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Key Takeaway

Whether you are a business owner or a marketing professional, a digital strategy is one thing you need the most to catalyse your business’s growth. Businesses can effectively leverage digital technologies to reach their ultimate objectives by following a step-by-step guide to creating a digital strategy. We hope this article will help you make the right choice and effectively transform your business digitally. 

The best way to establish winning digital strategies is to stay up-to-date with evolving market trends, and upGrad’s Doctor of Business Administration in Digital Strategy program can help learners to achieve the same!

This 36-month-long program fuels working professionals with in-demand digital strategies to smoothly transition into C-suite roles. Candidates opting for this globally-recognised course are open to exploring research opportunities across diverse verticals, creating studies with valuable impact on the real world.  Strive beyond the boundary of your corporate job and achieve growth with upGrad!

You can also check out our free courses offered by upGrad in Management, Data Science, Machine Learning, Digital Marketing, and Technology. All of these courses have top-notch learning resources, weekly live lectures, industry assignments, and a certificate of course completion – all free of cost!

 

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Frequently Asked Questions (FAQs)

1What is an example of digital strategy?

Some examples of technologies used under digital strategies to strengthen business processes include robotics, data analytics, machine learning (ML), artificial intelligence (AI), and the Internet of Things (IoT). Several businesses are implementing extensive transformation initiatives as new technologies significantly alter sectors in an effort to benefit from these trends.

2What are the rules of digital strategy?

Here are some of the digital strategy rules - Assess the impact of your strategy, set high ambitions, take big risks, keep building new strategies to stay trendy, and be involved in the digital transformation.

3What are the stages of digital strategy?

The stages of the digital strategy include - Plan, Reach, Act, Convert, and Engage. Navigating a digital strategy following these stages enables you to deliver a well-framed and effective strategy which is prone to reap effective results.

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