Businesses have more and more resources available to reinvent their business models. But how can you add value to your customers using digital assets?
In a study* we assessed how digital assets may impact existing business models, and build new products and services. We concluded that navigating in this fast-paced and complex ecosystem is a challenge for most organizations. But, with these tips you might be able to see digital assets as an opportunity to drive revenue growth.
What are Digital assets?
Within Capgemini Consulting, digital assets are defined as assets that add value through electronic interfaces. This is not limited to hardware and software. But it’s the way they’re applied, that makes it an asset. The image below illustrates some examples of digital assets.
How digital assets create value for your business
In our study we mapped the mechanism of how digital assets drive revenue growth and we found that there are roughly three ways of doing this.
Tip #1 Increase number of revenue streams
Digital assets entail new business models and a new way of working that leads to new sources of revenue. Moreover, digital assets themselves contain troves of data: numbers, text, audio, video etc. By applying advanced data analytics to those datasets, businesses can gain comprehensive insights in costumers and their behavior,. Probably even revealing unkown customer demands. Businesses can make better and faster decisions when it comes to developing new products and services thanks to data insights.
Tip #2 Increase number of customers and Customer Lifetime Value (CLV)
Applying artificial intelligence techniques, businesses can offer better and more personalized products and services to a customer. And they can do it faster too. These technologies empower customers in such a way that making purchase decisions becomes effortless. A higher customer satisfaction rate, leads potentially to gaining new customers and increasing the retention rates of existing customers. Furthermore, digital assets could be a competitive advantage for businesses thus help businesses to sell a higher total volume, if customers return more often. Monitoring Customer Lifetime Value provides the substantiation.
Tip #3 Optimize price offerings
Digital assets can also help creating more personalized products and services, which enable a better overall user experience. On top of that, online and offline marketing campaigns help creating better brand images. Higher valuation of brands may lead potentially to an increase of prices. Thanks to advanced data analytics tools, businesses have the technical capabilities to optimize price offerings to each customer at specific time, maximizing revenue to the greatest extent.
Our advise: Optimize your conversion funnel
In our study we found that digital assets typically add value in multiple steps of the conversion funnel. For example, in-store sensors and applications for online and offline experience integration can be used to help costumers explore options, but also enable bonding with brands. We identify both positive and negative reactions from costumers in our modified conversion funnel model. Positive reactions strengthen the loyalty loop, creating potential future value. And negative reactions provide valuable sources of feedback to use to improve products and services.
The model can be used to identify the potential of a digital asset in each step of the sales process. By using a value-based approach, it’s possible to identify the right digital asset to grow sales.
Good luck, and don’t forget to monitor the performance to ensure the asset delivers and meets the revenue growth expectations.
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*Study performed as an internship by Chao Bao and Kevin Tatetdagat under supervision of Moniek Nelissen. This article is a subtract of their final thesis for graduation in MBA, Nyenrode Business University and was published on LinkedIn.
Special thanks to Eva Lo – van Steenbergen for editing and advise.