What will make your digital Business profitable?
We've identified 7 key criteria that can make or break a digital business success.
Understanding what it takes to create a sustainable and profitable digital business requires a consideration of its high ownership potential and path to profitability.
Here at Joyjet, we've had countless chats, brainstorming sessions, and deep dives with business founders just like you. Through all that collaboration and discussion, we’ve nailed down 7 key criteria that can make or break your digital business success. Whether you're just starting out or looking to level up, these insights are gold. Let’s dive in!
- Ability to rise as a brand
There are several key abilities businesses and marketers can focus on to create a brand. These include Brand Identity, Awareness, Loyalty, Positioning, and Reputation.
- High Customer Engagement Potential
High customer engagement potential is about fostering a strong sense of investment and loyalty with customers by creating emotional connections, unique and customizable products, and a seamless and delightful customer experience.
- Path to profit
Achieving a balance between revenue growth and profitability is the key to a Digital Business. Strategies to do this include testing the business model, optimizing pricing, reducing costs, improving operational efficiency, and focusing on customer retention. One of the key performance indicators to measure this is your Customer Lifetime Value / Customer Acquisition Cost.
Investors are looking for those who are closed from 10.
- High Organic Growth rate
A high organic growth rate is important because it is a cost-effective, sustainable, and competitive way to grow the business, attract new customers, and ultimately increase valuation. It also shows that your brand is connecting with its intended audience and can keep up with larger, well-known brands.
This is a sign that your brand is successful in terms of recognition, sales, and overall success. It shows that your brand is reliable and able to stand out in a competitive market, which can help you gain more customers, increase brand loyalty, and have a successful presence in the industry.
- Return on Community
This is a metric that measures the value that an online business derives from its community of customers, fans, and followers. This approach considers both financial and non-financial metrics. It recognizes that a strong community is essential for the growth and success of an online business. The benefits of a good ROC are more repeating customers and fewer churning ones.
- Omnichannel Market Fit
An omnichannel approach is a way to interact with customers and sell products or services. It uses multiple channels, for example, physical stores, e-commerce platforms, social media, and mobile apps, which all support the customer journey.
- Leverage customer data
By using customer data effectively, Online businesses can drive sustainable growth and gain a competitive advantage in their market. Customer data are essential to understanding customers, personalizing experiences, optimizing marketing campaigns, identifying new opportunities, and building brand loyalty.
For example, an emailing strategy that heavily relies on your customer data can contribute to over 40% of your revenue.
We've come to these conclusions after working closely with many brilliant business founders. Their insights, combined with our expertise, have shaped these key criteria.
Got your own tips or experiences to share? We’d love to hear them! Let’s keep the conversation going and help each other succeed.
