4 Key Advantages of Digital Transformation for Any Enterprise
2 Minutes Read
Undergoing digital transformation is no more a matter of choice for companies but a necessity to thrive. According to a Forrester Research report, executives predict that digital will drive nearly half of their revenue by the year 20201. This is not just about digitizing customer experiences but extending it to all business areas, including operations, products, services, people learning, and performance support. This results in a more agile, customer-centric, innovative, and efficient organization.
Key Advantages of Digital Transformation
1. Improves 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 solutions allow companies to tap larger online markets while delivering additional value to existing customers. For example, utilization of social media platforms and geolocation lead to increased customer engagement. According to Rosetta Consulting Study2, “engaged customers buy 50% more frequently, spend 200% more each year, and are five times more likely to turn into repeat customers.”
2. Extends Global Reach
Digital technologies have eliminated the barriers imposed by geographical locations. Mid-market companies can streamline their communication processes across borders through advanced collaboration tools. Customers and prospects can even learn about and engage with you anytime, anywhere.
By tracking IP addresses, companies can personalize customers’ experiences based on their geographical location. Talking about a B2C scenario, 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.
3. Increases Sales and Overall Profitability
According to the MIT Center for Digital Business, “Companies that have embraced digital transformation are 26% more profitable than their average industry competitors and enjoy a 12% higher market valuation.”
Digital transformation can revolutionize your entire business. It ultimately enables a sounder understanding of customer behaviour and subsequently drives more accurate targeting of products and services. By building a positive brand reputation, you are more likely to retain existing customers and convert prospects.
4. Enhances Customer Experience
The key to win, grow and retain customers in this highly competitive environment is providing an exceptional digital customer experience. According to the 2016 Microsoft State of Global Customer Service Report, 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, companies must 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. You should, hence, train employees on how to deliver A+ customer support using their keyboard. Besides, conversation with the customer must be referenceable to the physical storefront 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.
1. The State Of Digital Business 2016 To 2020, Forrester Research 2. https://www.prnewswire.com/news-releases/rosetta-consulting-study-shows-that-customer-engagement-increases-market-share-and-drives-revenue-growth-267184761.html
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