Defining your digital value
In the second article in the series titled 'A Value-First Approach', Dom Graveson, Netcel's Director of Strategy & Experience explores how we define digital value across the fundamentals of revenue growth, cost savings and organisational capability.
How do we define Digital Value?
Perhaps its best to start by defining what we actually mean by ‘Digital Value’. Digital Value is actually dependent on what you are trying to achieve for your organisation - whether a customer facing or B2B business or a third sector organisation, these are principles that are relevant to all. Here are four key elements to consider:
In some cases Digital Value represents primarily income or sales revenue. This can either come direct revenue from bookings, e-commerce sales, donations and subscriptions, for example, or indirect revenue from product information, relationship building through developing trust, credibility or inspiring customers through great content experiences.
For other organisations, the emphasis might be on cost savings. This could be through encouraging self serve and online assistance for users of a product or service, an ambition to make savings across other customer touchpoints, or redeploy teams from low value customer service activities such as resetting customers’ lost passwords, to higher value interactions such as upselling services or addressing more complex concerns that are differentiating in terms of customer experience.
A third area of Digital Value is around customer satisfaction, reputation and service experience provision. This is more particularly important for organsations that either deliver services primarily through digital channels, or are providing an online component to blended services.
Another category to consider is the impact of digital on your orgnaisation internally. If you are investing in digital as part of a wider transformation towards market growth, higher service quality, greater efficiency, and better performing teams, you are probably delivering a significant portion of that through digital means both customer and colleague facing. From CMS, to MarTech, to HR and innovation platforms, doing digital well not only delivers income, growth and savings, but also it builds a fitter, leaner organisation with faster flow of ideas, better insight-led decision making, and a happier more effective workforce.
Digital value for your organisation will almost certainly combine elements of a number of these four categories in a unique way that reflects your ambitions, opportunity and capabilities. The key is to define and develop a Value Framework that is most relevant to demonstrating the progress and challenges for you on your individual digital journey.
If you want to explore how to measure the impact and value of your digital initiatives - get in touch, we'd love to hear from you. To receive the rest of the series direct to your inbox, join our Community here.
Read the next article in this series, Creating your own Digital Value Framework