Undergoing digital business transformation is no more a matter of choice for companies but a necessity to thrive. According to a Forrester Research report, executives predict that nearly half of their revenue will be driven by digital by the year 2020. This is not just about digitizing customer experiences but extending it to all business areas, including operations, products, services, people learning and performance support, leading to a more agile, customer-centric, innovative and efficient organization.
Below are 4 key advantages of digital transformation for any enterprise:
Improved Customer Acquisition and Retention
By relying on legacy systems infrastructures, businesses risk losing customers to digitally equipped competitors. To have a chance in this hyper-competitive market, companies should deploy digital technologies that enable personalized, unified and responsive experiences. Digital transformation allows companies to tap larger online markets while delivering additional value to existing customers. For example, utilization of social media platforms and geo location lead to increased customer engagement. According to Rosetta, “engaged customers buy 50% more frequently, spend 200% more each year, and are five times more likely to turn into repeat customers.”
Extended Global Reach
Digital technologies have eliminated the barriers imposed by geographical locations. Mid-market companies can streamline their communication processes across borders with the aid of advanced collaboration tools. Customers and prospects can learn about and engage with you at anytime and anywhere.
By tracking IP addresses, companies can personalize customers’ experience based on their geographical location. Online retailers display personalized product recommendations depending on the local weather conditions of the visitor. For instance, retailers promote jackets and umbrellas if it happens to be raining in the prospect’s location and sunscreen for visitors living in hot, sunny weather conditions.
Increased Sales and Overall Profitability
According to the MIT Center for Digital Business, Companies that have embraced digital transformation are 26 percent more profitable than their average industry competitors and enjoy a 12 percent higher market valuation.
Digital transformation can revolutionize your entire business. It ultimately enables a more sound understanding of customer behavior and subsequently drives more accurate targeting of products and services. With a positive brand reputation, you are more likely to retain existing customers and convert prospects.
Enhanced Customer Experience
The key to win, grow and retain customers in this highly competitive environment is providing exceptional customer experience. Microsoft 2016 State of Global Customer Service Report shows that 61% of consumers now view customer service as “very important” in their choice of and loyalty to a brand.
With customer support ranking at an all-time high, it is vital that companies understand how their digital footprint is connected to this. For example, if you are known for delivering phenomenal in-store customer support, your customers demand the same level of service across digital channels such as chat. This complicates issues because you then must train employees how to deliver A+ customer support using their keyboard. Furthermore, that conversation with the customer must be referenceable to the physical store front so that customers don’t have to go through repeated processes . Companies able to develop harmony between digital and physical channels have the potential to win over more traditional companies that aren't expanding to meet the changing demands of their customers.
Technology certainly has the power to enable us all to live longer and healthier lives. Though digital transformation can be more complex in healthcare
For some, New Year’s resolutions bring to mind promises to exercise more, eat healthier, or learn a new hobby.
It’s really stimulating to look at Gartner’s annual top 10 strategic technology trends for the year ahead. Last month it highlighted the top trends that will impact most organizations in 2018 and organized them in a framework relating to building an "Intelligent Digital Mesh”. “The intelligent digital mesh is a foundation for future digital business and ecosystems," said David Cearley, VP and Gartner Fellow. IT leaders must factor these technology trends into their innovation strategies or risk losing ground to those that do.