Why Digital Optimization Should Be at the Forefront of Your Data Strategy
Every team in a digitally optimized company is empowered to explore product data, gather technological insights, and make informed decisions to work towards business goals. Oftentimes, these goals are focused on increasing long-term customer loyalty and value.
Teams that are digitally optimized tend to be collaborative, data-driven, and iterative. It is the responsibility of company leaders to ensure that employees in different teams have access to the same data so that these teams can develop a shared understanding of customer behavior from multiple perspectives.
In this article, I will talk about digital optimization and why it is important for your business.
What is Digital Optimization?
The practice of integrating digital technology to enhance current business models and operational procedures is referred to as digital optimization. Digital optimization is essentially a blend of technology with existing systems, platforms, and human experience, making it ideal for data-centric businesses.
That said, digital optimization is about more than just gaining critical business insights.
A company culture in which teams have democratized access to data and the support of leadership to take quick action based on insights fuels product-led growth. In practice, digital optimization works like a series of feedback loops. With the right technology, processes, and metrics, teams can maximize the efficiency of their processes, reduce overheads, and focus on strategies that will be fruitful for the organization.
How Can Digital Optimization Change Your Business?
The last few years have seen unprecedented digital adoption—and this is only the beginning. According to IDC, “Global spending on digital transformation (DX) of business practices, products, and organizations is expected to reach $2.8 trillion in 2025, more than tripling the amount allocated in 2020.”
Rethinking processes, systems, and technology is not easy. But the reality is that your competitors will be doing so even if you don’t. While it may take years for the effects of change to catch up with your company, maintaining the status quo now means becoming the next Blockbuster tomorrow.
Here are some advantages of digital optimization:
- Helps you obtain consumer trust
- Improves workforce efficiency
- Enhances the customer experience
- Increases profitability
What Problems Does Digital Optimization Solve?
Digital optimization increases an organization’s visibility, velocity, and growth. It is a method of removing or minimizing the numerous factors that contribute to slow, ill-informed decision-making.
Here are some of the problems digital optimization can solve:
- An imperfect view of the consumer journey
Optimization of the customer journey entails analyzing the various interactions that customers have with a brand. Once you examine the user’s experience to understand what drives their choices and actions, you’ll be better able to make improvements to the process. Whether a customer contacts your company via your website or a social media app, the ultimate objective is to ensure that their experience is seamless. In this way, you can use digital optimization to enhance your customer experience.
- Siloed data
You create a “single source of truth” for your entire business when you invest in digital optimization. Everyone can get access to the data they need at any time, from any location, and using any device. By leveraging interdepartmental insights, teams can strategize based on the full picture as opposed to their limited points of view.
- High costs
One of the major advantages of investing in digital optimization is the almost immediate reduction in overhead costs. By automating and streamlining tedious, time-consuming tasks, teams can not only focus on other tasks but also save costs.
How Digital Optimization Helps You Close the Loop between Data, Insight and Action
Closing the loop in networking refers to collecting and analyzing data to determine how the network can be optimized and then implementing those changes. Digital optimization can do just that by helping you close the loop between data, insight and action.
Digitally optimized teams are constantly working with data from various touchpoints. With access to the right data and technology for analytics, these teams are able to extract actionable insights that will help them implement changes and optimize strategies more quickly to increase the value being offered to customers and, ultimately, grow the business.
Here’s how that works:
Threats and opportunities can appear at breakneck speed in today’s business environment, and a company’s survival may depend on how quickly it responds. The key is to have timely access to useful information.
However, even with automated tools, bringing data from disparate sources and formats together can be a time-consuming and error-prone task.
Data optimization addresses this issue by reorganizing datasets and filtering out inaccuracies and noise. As a result, the speed with which actionable information can be extracted, analyzed, and made available to decision-makers is usually significantly increased.
What’s a Real-world Example of Digital Optimization?
Consider the Kahoot! example. The quiz and trivia platform, which focuses on the classroom, was founded in 2012. Kahoot! had more than 5 billion players by 2021, expanding beyond the classroom and into the business world. Kahoot! is now used by 97 per cent of Fortune 500 companies for training, presentations, events, and other purposes.
How did Kahoot! end up there? By ensuring that all teams have access to product data in order to make decisions.
This method of digital optimization has been essential for helping Kahoot! teams figure out how they add value to clients and where to concentrate their efforts. Providing shared data and improving visibility for all teams is a critical business requirement for digital optimization. With the help of tools like HockeyStack, you can also embrace digital optimization and grow your business like Kahoot! HockeyStack is a SaaS analytics tool that enables you to determine what drives revenue. To learn which features increase revenue, which sales sequences bring in the most engaged users, and other information, you can connect product metrics with marketing, revenue, and sales.
In addition to the goals, funnels, segments, and crucial metrics for optimization, you may create whatever dashboard you require without writing any code. In an environment of increased competition, increased digital complexity, and higher customer expectations, your company cannot afford to wait weeks or months to collect data, run tests, and finally make a decision. It’s all about putting product data at the center of decision-making and breaking down collaboration barriers. Once you’ve broken down the obstacles to collaboration, you must meet your clients’ expectations.
Customer expectations are constantly rising, creating a requirement for your business to increase its knowledge of digital optimization. But it all begins with a firm knowledge base and a data-driven culture. Check out our live demo if you’re interested in learning more about how HockeyStack can help you build a future-proof culture of digital optimization.
Digital optimization is the key to driving online conversions in any industry. Optimization, from A/B testing to personalization, enables you to create an exceptional user experience and delight your customers. As a result, it should be the top priority in your marketing budget.
Experts claim that most businesses today fail due to a lack of a data strategy to support accurate decision-making. Data strategies support enable long-term business goals by enabling innovation and value creation in response to current and future market trends.