Digital transformation has evolved – starting from digitization, digitalization and now digital transformation.
Digitization can be described as the technical process of converting analog information into a digital format. While digitalization is the business process of technologically-induced change in industries. Digital transformation is described as “the absolute and comprehensive societal effect of digitalization”. Digitization has enabled the process of digitalization, which resulted in opportunities to alter existing business models, patterns of consumption, socio-economic structures, legal and policy measures, organizational patterns, culture barriers, and therefore the digitality of the society itself.
Digital transformation in this context – is simply “forcing” organizations to embrace technology by ensuring that digital technology is integrated into the operations of a business. The result; fundamental changes in how a business operates and the value they deliver to their customers.
For an organization to be completely aligned to digital transformation, the customer must drive this change. This is because customers ask for literally “anything” today and as a business you must embrace technology to deliver an unparalleled customer experience.
A research from IDC , is saying that two-thirds of the CEO’s of multinationals will shift their focus from traditional, offline strategies to more modern digital strategies to improve customer experience before year 2020 comes to an end – with 34% of companies believing they’ll fully adopt digital transformation within 12 months or less. This explains the increase in digital spending.
In 2018, the net global spending on digital transformation was estimated at $1 trillion.
By 2022, this number is expected to exponentially increase to more than $2 trillion.
(In fact, 79% of companies said that COVID-19 increased the budget for digital transformation).
However, despite this forecast, we are not quite close to complete digital adoption.
Digital transformation can be categorized into four types: business process, business model, domain, and cultural/organizational. The inability to address all four types leaves significant value on the table. These are explained in detail by Andrew Annacone here.
Today, with the use of mobile devices, apps, machine learning, and automation, customers can get what they want the moment they need it. This transformation in consumer habits happened as a result of digital technology.
What’s more, these new digital technologies have caused a shift in customer expectations, resulting in a brand-new kind of present-day buyer. She’s constantly connected, app-native, and aware of what can be done with technology. Because of the opportunities that come from using modern technology, consumers are quick to rate organizations on their digital customer experience first.
Today, digital first requires you to rethink how you relate with your customers.
Super office has listed three ways to help your business get started with digital transformation.
1. An agile environment
In today’s business world, having the right technology to power up digital strategies is extremely important. Are you aware that 45% of executives believe their companies lack the required technology to conduct a digital transformation strategy?
Fortunately, organizations recognize the need for implementing agile systems and 86% of businesses believe that cloud technology is critical to digital transformation.
Cloud enables companies to be agile – giving your organization the ability to test new projects that are cost-effective and low-risk – allowing you to use technology to meet customer demands quicker.
By easily connecting different applications like web and mobile apps, customer databases and data analytics, you can digitally record and view all your customers record in one place – usually a CRM system. By using this data, you will determine how, when and why your customers do business with you and from it, you will be able to provide a better, more improved customer experience.
Subsequently, the next thing to think about in digital transformation is – personalization.
2. A personalized customer experience
Consumer’s today want to be treated as special individuals, and they want organizations to understand their buy history and personal preferences.
According to Accenture , 75% of customers admit being more likely to buy from a company that:
• Recognizes them by their name,
• Knows their purchase history, and
• Recommends products based on their past purchases.
The interesting part is that they’re happy for organizations to use their data.
The good news is that customers are okay with organizations using their data to improve their experience.
But, to take advantage of this opportunity, you need to invest in CRM.
In fact, without CRM, getting personal preferences of your customers may be quite difficult. And without storing the history of how your business interacts with them, it’s impossible to provide a unique experience.
With a CRM system in place, you can analyze and study customer-related data based on a customers’ previous interactions with your company. A good understanding of your customers can be gotten by evaluating their purchase history, Internet search activities, general enquiries and feedbacks or complaints. This data can then be used to create highly targeted messages to match customers’ individual preferences, which results in a more personalized experience.
Delivering the right message to the right person at the right time is critical. This brings us to the next success factor for digital transformation – a seamless multi-channel experience.
3. A seamless multi-channel experience
Technology today has empowered customers to get what they want, whenever they want, and how they want it.
Majority of consumers today expect a customer service response within one hour. It also does not matter to these customers if it is a weekend or a weekday. This need for instant gratification has forced organizations to remain accessible and on-demand, 24 hours every day, 7 days per week.
Everything is now happening in real time, so companies that can offer immediacy, personalization and accessibility to their customers are winning.
Modern day consumers are not restricted to a single channel. They shop online, share reviews and ask questions via social media networks. Bringing all of these interactions together enables you to create a single digital profile every time a customer interacts with your business.
Finally,
Today, companies are forced to seriously consider implementing a digital transformation strategy, that is if they haven’t started already. This is because of the speed and pace at which technology is evolving.
Digital transformation offers organizations an opportunity to engage modern buyers, and deliver on their expectations of a seamless customer experience regardless of channel or place.
The truth is, digitally transforming your business can be quite a multifarious project.
So, to begin:
1. Do not be in a hurry to purchase on-site solutions, think cloud solutions first. Cloud solutions enable you to be agile and meet customer demands quickly. You’re also automatically updated to the latest features, so you are never behind.
2. Your customers Personalized experiences are what your customers have come to expect. Use the information in your CRM software to gauge previous correspondence, purchase history and their behavior to give them what they want.
3. Customers want seamless experiences regardless of channel. So, to deliver a single, user-friendly customer experience, think of the best way to integrate all the digital channels you have in your company together.
If you focus on these three factors, you will help your organization embrace the new digital terrain, exceed customer expectations and improve the overall customer experience.
Can you tell where you are on your digital transformation journey?
If you enjoyed reading this, feel free to repost or share.
