Why You Need a Digital Business in 2021 and Beyond

Why You Need a Digital Business in 2022 and Beyond 

In a world where a phone can control everything from toys to microwaves, the idea of going digital seems almost antiquated. It might seem like an inevitable future. But many businesses are still lagging, and they'll need to scramble to catch up in 2022 and beyond.

How can we be so sure?

For one thing, COVID and the events of 2020 ensured this change. With lockdowns and quarantines becoming the norm, customers had no choice but to adapt to digital trends in all aspects of their lives. 

Second, research predicted this digital transformation. For example, Tech Pro Research surveyed a group of businesses in 2019. They found out that 70% of companies were already investing resources into digital transformation.

These reasons should be enough to consider going digital seriously.

But there's more. 

In this article, you'll find out what a digital business is, the benefits of going digital, some digital business examples, and facts and figures. So you can make an informed decision. 

What Is A Digital Business?

You could describe today's world as a "work-from-home" world. And you would be right. For this reason, it might seem like everyone runs a digital business. But the truth is, senior-level executives define the term differently and in various ways.

For the sake of simplicity, think of digital businesses as a reliance on tech to run and grow your business.

This reliance on tech varies from industry to industry: 

• A business might employ task management systems to improve productivity. They might also automate their business with artificial intelligence (AI) and build apps to streamline the way they work. 

• An online business -- a business that operates entirely online -- could handle all operations via the internet. There's a reason why so many SaaS companies do well; they allow companies to work in the cloud. 

These scenarios, although different, fit into the concept of digital business. 

But of course, just because you use an app or two in your business does not mean you run a digital business.

And there's a catch: this reliance on tech is no longer optional. It's no longer a luxury; it's a necessity. Let's look at the data.

 

What Does The Data Show?

According to Salesforce, more than 50% of the SMBs they surveyed last year stated that technology was a massive part of their customer interactions. Also, over 60% invested more in tech during the pandemic. This data reveals two key points:

1. A large percentage of SMBs understand the growing digital trends

2. Businesses who do not adapt will find it very difficult to compete in the coming years

The truth is, companies had already begun to transition to the cloud even before 2020 hit.

However, when COVID and the events of that year hit, this transition sped up dramatically. It was no longer enough to take your time to adapt to the times; adapting became a necessity. 

There's more.

According to Plume, over 8 billion digital voice assistants will become available by 2024. The question is, if you run a brick-and-mortar business -- with no intention of adapting to the digital times -- how will you be able to respond to a market whose principal means of buying and research is digital voice assistants?

Then there's COVID. It's easy to see the businesses that suffered the most at the hands of the pandemic. Companies in various industries indeed got hit. However, companies that could not reach their customers got hit the most. When the pandemic hit, many governments forced customers to stay at home. And even when some governments allowed the populace to roam free, many people were too scared to leave their homes. 

With panic in the air, only businesses that could meet customers at their homes could get their attention. 

It's easy to see why Bloomberg reports that e-commerce will be worth more than $15 billion by 2027.

With all this data out there, does that mean things will never return to normal?

No, the world is still slowly returning to normal. However, you would be unwise to assume traditional businesses will make a return anytime soon. 

 

The Benefits of Going Digital for Businesses Today

Despite the data, you could still make the argument that digital business is not for everyone.

Some people consider it a waste of time and money. But the reality is, those who do enter the digital business world today will potentially make a substantial amount of money and save time and money in the long run. Here are some benefits: 

#1- A Better ROI 

If you choose to go digital, you can expect to see much higher sales. And if your sales skyrocket, your ROI will increase as well. But there's more. 

With so many businesses going digital, you'll find that even if you don't have a sales force or customer service department today, you'll be able to hire skilled people across the globe. And because your business can run 24/7, your effort will be worth something in the long run. 

#2- Increased Customer Satisfaction 

Customers are sure to be content with your business when they interact with digital technology. We've already seen this trend occurring with cashless transactions. Technology allows for faster work and better communication -- two critical ingredients to customer happiness.

#3- Lower Costs

If you plan your digital business well, you'll see your costs rapidly decrease. This analysis is accurate because the cloud allows for much more automation at a lower price point.

The takeaway? All these factors mean that the benefits of becoming digital outweigh the costs over time.

 

Conclusion: What Kind Of Digital Businesses Should You Consider? 

With all the data explored in this post, you can tell that digital is the present and future. Maybe you're convinced. But the truth is, not all digital businesses are created equal. Research is necessary. 

Let's consider a popular digital business trend; selling on Etsy.

According to Etsy, over 95% of business owners on their platform run their businesses from home. The same report stated that more than 70% operated a one-person business. Apart from the freedom to successfully run your business from home -- a dream for many -- you can work by yourself.

As if that's not enough, Etsy states that many business owners were successful enough to keep their business as their only source of income. Talk about benefit after benefit. 

Of course, selling on Etsy is not the only way to run a digital business. Other famous examples include:

• Freelancing

• Content marketing

• E-commerce

• Social media marketing

• Web and graphic design 

The list goes on and on. 

However, the fact remains; if you want to be successful in 2022 and beyond, you're going to need a digital business. If this article is any proof, there are many ways to win in the digital world. 

And there are so many digital business ideas -- it's up to you to research each one and settle on one that fits your needs.