Will going totally digital affect my business?

Dear Caroline,

Because of the pandemic, I was forced to embrace technology just like other retailers. I let some of my staff go but retained those that were technology savvy. Consequently, the business joined various digital platforms that have created new channels to reach customers and introduced a seemingly endless flow of new shoppers that we service remotely. My worry is should I trust the trend and let my staff go? Or should I hold onto them because some clients still prefer being handled by the team?

Harry

Hello Harry,

I think you need to decide what is best for your business. Many companies went down the digital route because, at the time, that was the demand, and many have maintained the digital way of doing business because the customer/ consumer has also changed their preference in the way they want to engage/transact with suppliers. The decision to hold onto staff who are supporting those clients that prefer to have the physical interaction must be informed by the numbers. Does it make business sense?

You will need to look at your numbers carefully, go through a cost-benefit analysis, and ask whether the revenue earned from this cluster of customers covers the costs of doing business. Remember, the costs of doing business for the physical clients may be different from your online client, so make sure you factor in all the costs to have an accurate assessment. An alternative approach is to think through how you can influence your “physical client” to join the online platform/ digital way of work. You may have to invest some time working with them and bringing them around to your way of thinking.

The business/consumer landscape has changed, and technology will continue to play an essential part in everyone’s life. This trend will not go back to what it was “pre-pandemic”. We need to appreciate that businesses, clients, and consumers have now enjoyed the added value technology has on their experiences. They are not willing to go back. 

As a vendor who is likely to go full digital, your priority is to make sure that your technology infrastructure can hold up your business as it is now and be robust enough to withstand any expansion you may have. While many of us appreciate the value of technology in the new normal, the most frustrating aspect is the consistency in the technology, the efficiency of coactivity, Apps availability and functionality, and quality of service delivery.

Caroline Mboijana,

Managing Director, The Leadership Team (U) [email protected]