The value of a digital due diligence audit
Digital due diligence processes are increasingly popular yet filled with opaque claims and structure. Beis has decades of experience of working inside manufacturing companies building digital functions, so we can focus on where to look for value creation and fundamental risk. In essence, the digital due diligence is split into two parts: the external online presence that existing and potential clients can see, and the internal systems infrastructure that employees use to keep the business moving. Both areas will be reviewed to show where a business is strong, and where there are value creation opportunities. The company will also be benchmarked against their competitors and a best-in-class option to judge how they sit amongst their peers and how far away they are from the strongest organisation in their sector.
Digital due diligence will discover things that are not picked up in traditional due diligence processes. The deep dive into external and internal digital areas will present numerous opportunities for value creation, many of which can be executed quickly. These can range from integration of infrastructure to generate automation efficiencies to generating a leading customer experience. Digital is not only a marketing function, but increasingly important for the performance of the wider organisation, down to departmental level.
Proper use of digital tools has the ability to future proof the company against other exogenous shocks, maintaining their ability to supply product and increase sales. There will be interesting insights from how a business responded to the digital opportunity presented by the pandemic. Successful companies were able to adeptly use technology to service their customers, increase customer engagement, and maintain employee effectiveness.
When reviewing standard trading conditions, digital presents substantial opportunities to vast numbers of new clients via social media channels and a strong website. Within some sectors, social media and the website are underserved assets, particularly relevant for industrials and manufacturing B2B focussed companies. These markets present a fantastic opportunity to gain a sustainable digital lead, and we can help to develop a digital roadmap for long term success.
Digital due diligence audits start by reviewing the digital strategy in place or comparing the use of digital to the achievement of an overall business plan. This will serve to show how engaged the organisation is with the subject and where they see it taking them over time. Social media is often seen as a gimmick, something to do because everyone else seems to do it. However, we will review how successful the company is at using social media to engage customers and reach new ones. This will be achieved through analysing follower engagement, the size and development of the community, frequency and suitability of posts, channel analysis and clarity on overall purpose.
The website is central to the process. An in-depth study will show traffic quantity and quality, the split between branded and non-branded traffic, the channel mix, user experience, site performance, SEO, and security protocols. If the website has an e-commerce platform, then we will explore its effectiveness and headroom to deliver greater sales. We will also be able to judge how integrated it is with the wider business infrastructure, so that automation savings are maximised.
Lead generation activities are clear indicators of success for business that do not use e-commerce. Websites, social media, and email marketing can all be geared to maximise the quantity and quality of inbound leads. Email marketing is another powerful tool at the company’s disposal, which is where a review of contact database numbers and organic growth is important, to show the available audience now, and forecast into the future. Value comes from maximising engagement and conversion from email marketing, open rates and click rates are measures to focus on.
The potential that digital can play in a company is astounding. Brand awareness growth, customer engagement, product promotion, automation of process, and leading customer service are only a handful of areas where businesses can create and sustain a lead in the market. The digital due diligence audit seeks to find the opportunities available. A clear stream of value creation can be developed and executed from the first day post investment.