How Paper-Based Processes Are Hurting Your Business

How Paper-Based Processes Are Hurting Your Business

Digitally illiterate businesses still exist

With 2025 looming, and the proliferation of AI that has dominated this year, it may be hard to imagine that some businesses are still struggling with paper-based processes. Or perhaps not, one survey showed that 45% of SMBs still use paper records. In fact, only 18% of businesses can be considered truly paperless.

However, one thing is clear, the perception or even the expectation – especially from clients or customers – is that paper is out, digital is in.

But what is the impact of digital illiteracy to a business? Here is a real-life example of how paper-based processes impacted the customer experience at a carpet store and the missed opportunities for their business.

The Challenges of Relying on Paper-Based Processes

Lack of Real-Time Access to Customer and Product Data

As a previous customer to that store, this patron could have been welcomed into the store with the staff having access to their previous purchases, and potential preferences for this purchase. With none of that information stored, or readily at hand, this patron was treated as a first-time customer. In fact, this patron visited the store three times before making their eventual purchase, each time having to explain their requirements, this could have been a smoother process with even a simple CRM in place. A more effective digital workflow would have enabled easy access to customer data, improving service efficiency.

Errors and Inaccuracies in Record-Keeping

The ordering process at this store was farcical. A paper order form covered in scribbles of almost illegible writing of various calculations the store staff had been over with the patron. If the patron hadn’t made a note of the price quoted, they could have been easily overcharged. This manual approach not only led to confusion but also risked damaging customer trust. Digitizing records would have allowed for greater accuracy, clearer communication, and a more professional presentation.

Time-Consuming Inventory Management

Inventory management on paper is cumbersome and error prone. Employees at this carpet store had to manually check stock, which resulted in delays and left customers waiting for updates. When products weren’t immediately available, estimating restock times became a guessing game. Real-time digital inventory tracking would have streamlined the process, ensuring that both staff and customers had accurate information. This inefficiency is common among paper-based operations and leads to wasted hours that could be better spent serving customers or improving business performance.

How Paper-Based Processes Impact Customer Experience

Scheduling and Customer Communication

Not only did this store rely on paper order forms, but their scheduling system was just an A4 week-to-view diary. Staff relied upon handwritten notes to verify their carpet fitters availability; this led to a phone call a few days before the original scheduled fitting date to rearrange due to the fitter being unavailable. An electronic system would have been quicker and more reliable way to check the availability of the fitter and ensure that appointments were scheduled right the first time.

Moreover, with delivery texts and emails becoming the norm, customers are increasingly expecting more communication from the brands they buy from. However, with no digitised processes in place, this customer was left without a clear indication of what they were to pay the fitter on the day and with no reminders of when the carpet was due.

By transitioning to digital scheduling systems that send automatic confirmations and reminders, stores can ensure better communication, a more organized approach to customer appointments, and enhance overall customer satisfaction.

Missed Opportunities for Personalization

Personalized service can be a key differentiator in retail, yet paper processes make personalization near impossible to deliver. The staff at the carpet store had no way of remembering previous customer visits, preferences, or enquiries. This lack of data meant every interaction started from scratch, even with repeat customers. A digital CRM system could track customer history, making it easy to offer tailored recommendations and improve customer loyalty.

Data Security and Compliance

Handling sensitive customer information, like addresses and payment details, through paper-based systems poses serious security risks. Physical records can be easily lost, damaged, or accesses by unauthorized individuals, leaving businesses vulnerable to data breaches or compliance violations. In today’s age, customers expect their personal information to be safeguarded, and regulations like GDPR require strict data protection practices.

Using a digital system ensures that customer data is encrypted, securely stores and only accessible to authorized personnel. Automated security features, like audit trails and access controls, help businesses stay compliant with data protection laws. Moreover, digital solutions can simplify the process of maintaining and organizing records, making it easier to adhere to compliance standards. By embracing operational efficiency through secure digital platforms, businesses can protect customer trust and avoid costly legal repercussions.

Benefits of Going Digital for Retail Stores

Improved Inventory Accuracy and Availability

Switching to a digital inventory management system can drastically improve accuracy. Staff would no longer need to manually count items or guess about stock levels. Digital tools update inventory in real time, providing up-to-date information at a moment’s notice. This not only makes operations more efficient but also reduces the risk of stockouts or overordering. Embracing operational efficiency through digital systems allows businesses to operate more smoothly and effectively.

Faster Response Times and Enhanced Customer Service

Digital tools streamline workflows, allowing employees to respond to customer inquiries quickly. Whether it’s confirming product availability or processing an order, every task becomes faster and more efficient. For a carpet store, this means customers spend less time waiting and more time making informed decisions, leading to higher satisfaction and greater chances of repeat business.

Greater Efficiency with Automation and Real-Time Data

Automation can transform time-consuming manual tasks, such as data entry and inventory updates, into instant processes. For the carpet store, this means fewer errors and more time to focus on providing exceptional customer service. Additionally, access to real-time data helps managers make better decisions, such as restocking popular items before they run out or adjusting marketing strategies based on sales trends. Operational efficiency and digital workflow provide the foundation for these capabilities, driving smarter business practices.

Feedback for Upsells and Future Purchases

Without digital processes in place, this purchase isn’t the only one impacted—future sales may be affected as well. Without the ability to contact customers via email or text, stores miss valuable opportunities to gather feedback and request reviews that can boost their reputation. Additionally, they lack a way to share marketing or promotional messages with past customers, limiting their ability to drive repeat purchases and increase customer loyalty.

Embracing a Digital Future for Better Business Performance

The world is moving forward, and businesses must adapt to stay competitive. Paper-based processes are holding companies back, creating inefficiencies and frustrating customers. By embracing digital tools, businesses can improve accuracy, increase efficiency, and provide a level of service that today’s customers expect.

For carpet stores and other businesses still reliant on paper, the time to digitize is now. The benefits are undeniable: faster service, fewer errors, and a more personalized experience for every customer. It’s not just about staying current; it’s about preparing for a future where digital solutions drive business success. Don’t let digital illiteracy limit your potential—embrace digital transformation and unlock new opportunities for your business.