What is digital transformation?

Companies are being forced to change their business models to adapt to the new market reality.

The interesting thing about this is that it is not the companies that are driving this change.

They are the clients.

Today, customers are looking for content relevant to what they are doing at any time or place, in the format and on the device of their choice.

It is the customer's journey, from when they learn about your offer until they decide to buy

Your strategy.

And to keep up with this new type of "always-on" customer, your company must embrace technology to deliver an ever-better customer experience.

The strategy of every company that understands digital marketing knows that putting the customer first, giving them a pleasant experience is essential to increase sales.

Progress revealed, in its State of Digital Business Report, that 47% of companies have not yet begun their digital transformation, while 59% are concerned that it is already too late for them.

And there is good reason to worry:

The same study found that 55% of companies believe they have less than a year before they begin to suffer financially and lose market share.

That gives them less than 12 months to digitally transform their organization before they start losing business.

The good news is that we can help you get started. How?

• We explain what digital transformation is.
• We introduce you to the new digital consumer. 
• We show you how you can use technology and data to provide a better customer experience.

What is digital transformation?

It is the integration of digital technology into all areas of a company, resulting in fundamental changes in the way that company operates and the value it offers to its customers.

Simply put, it is about changing the way the company interacts with its customers and how it provides them with a consistent experience when and where they need it.

In fact, the companies were asked  Regarding the factors that influence the decision to implement a digital transformation strategy, almost half of all organizations mentioned customer experience and satisfaction as their main influences.

Companies that transform digitally are creating highly engaged customers.

And these clients bring:

• Six times more likely to try a new product or service from your brand.
• Four times more recommendations of your brand to their friends, family and acquaintances.
• Twice as many opportunities to make purchases, even when your competitor has a better product or price.

Customers who are highly engaged and satisfied with the digital experience buy 90% more frequently.

They spend 60% more per purchase and triple the annual value (compared to the average customer).

An MIT study found that companies that have adopted digital transformation are 26% more profitable than their peers.

To offer a better customer experience, you must first understand who this new type of digital customer is.

The new digitally conscious customer

Digital technology has transformed consumer habits.

Mobile devices, apps, machine learning, automation, and more allow customers to get what they want almost exactly when they need it.

New digital technologies have caused a change in customer expectations, resulting in a new type of more “conscious” buyer.

Today's consumers are constantly connected and adopt new updates quickly and enthusiastically; since these are linked to improving the user experience.

For B2B sales teams, digital transformation means replacing cold-door sales with social selling:

Your clients are already active on social networks and that's where you should be. Instead of waiting for the customer to contact your company, you should communicate with them, establish a relationship.

Share relevant content that adds value and show them how you are part of the solution to their problem.

For marketing teams, the goal is to reduce spending on offline activities, such as office supplies, postal mail, large advertising banners and television ads.

Your customers want (and expect) highly targeted, personalized messages, which can only be achieved through a data-driven marketing strategy.

Now, you need to use digital channels to implement search engine marketing (SEO-SEM), affiliate marketing and membership strategies, without forgetting the one that is always in force: e-mail marketing.

The new customer service is about being proactive, helping, assisting and guiding.

Potential clients, before deciding on your brand, seek to clear their doubts in a wide range of channels:

Social networks, review sites, forums and communities are now part of the customer service ecosystem.

To adapt to today's new buyer, your company must think about digital transformation and updating.

Introduction to digital transformation

Digital transformation offers organizations the opportunity to understand today's buyer, engage with them and meet their expectations with a multi-channel customer experience.

However, of the $1.3 trillion invested in digital transformation, more than $900 billion has been wasted.

So why do some digital transformation efforts succeed while others fail?

To help you successfully achieve your goals, here are three ways to get your company started with digital transformation:

1. Define your strategy before executing the digital transformation

The business world is facing an accelerated pace, due to rapidly changing technologies and innovations.

Even established businesses are disrupted every year by the evolution and advancement of technologies.

In 2009,Uber transformed the taxi industry by allowing people to take a ride through a mobile app.

Amazon Go is the latest adaptation to the growing e-commerce business, offering a chain of convenience stores in the US with cashierless self-checkout stations.

 Google and Elon Musk are competing with each other to launch autonomous cars (self-driving)  to the world.

With all these new ideas being introduced to the market, companies need a long-term strategy to adapt, compete and survive in this new digital landscape.

A digital transformation strategy begins with 3 fundamental questions:

Where are you today?

Where do you want to be tomorrow?

What are you going to do to get there?

Businesses need a plan that not only outlines what technologies should be adopted, but also protection against digital disruption.

That is why understanding your core systems and processes to identify opportunities is essential before realizing the potential of digital transformation.

2. Reimagine the customer journey

Now that customers gain control over how companies deliver experiences, it's time to create new experiences that meet their demands.

In an HBR survey, 40% of respondents say customer experience is their top priority for digital transformation.

Each customer experience affects the overall perception of the brand, so adopting an approach that focuses on customer relationships is a wise move.

In the same survey, 72% say they are excited about the shift to digital, as they look to new opportunities to create better relationships with customers.

So, if you are looking to improve your customers' overall experience, invest your time and resources in technology that improves business relationships.

3. Create an I.T.C. environment. agile and flexible

Having the right technology to drive digital strategies is essential in today's business world. But did you know that 45% of executives believe that their companies lack all the technology necessary to carry out a digital transformation strategy?

Fortunately, organizations recognize the need to implement agile systems and 86% of companies believe that cloud technology is essential for digital transformation.

The cloud allows businesses to be fast, dynamic and flexible, giving your organization the ability to test new projects that are profitable and low risk.

It allows you to use technology to meet customer demands more quickly and effectively. 

By easily connecting SaaS applications such as customer databases, Big Data analytics, web and mobile applications, you can digitally record all touchpoints, to create a 360-degree view of your customer.

Using this data, you will learn how, when, and why your customers do business with your company, and from this data you can provide an improved customer experience.

This brings us to the next factor in digital transformation: personalization.

 4. Personalize the customer experience

Today's buyers want organizations to treat them as unique individuals and know their personal preferences and purchasing history.

According to Accenture, 75% of customers admit that they are more likely to buy from a company that:

He recognizes them by name,

Know your purchase history and…

Recommends products based on your previous purchases.

The good news is that customers are happy for organizations to use their data to improve their experience.

But, to take advantage of this opportunity, you must invest in CRM (Customer Relationship Management).

Without CRM, you can't treat your customers as individuals. And without storing the history of how your company interacts with them, it is impossible to provide a unique experience.

With a CRM system, you can analyze and study customer-related data based on interactions with your company. 

For example, you can understand your customers well by evaluating general requests, product quotes, and support queries. This data can then be used to create highly targeted messages that match individual customer preferences, resulting in a more personalized experience.

Sending the right message to the right person at the right time leads us to our third and final success factor for digital transformation: a seamless multichannel experience.

5. Enable a seamless multichannel experience

Technology has allowed customers to get what they want, when they want it and how they want it.

More than half of all consumers now expect a customer service response within an hour.

This need for instant gratification has forced organizations to remain accessible and on-demand, 24/7.

Everything now happens in real time, so those companies that can offer immediacy, personalization and accessibility to their customers will win in the long term.

Today's consumers are not tied to a single channel. They browse the store, shop online, share reviews through mobile apps, and ask your support team questions on social media.

Uniting all these interactions allows you to create a unique digital profile every time a customer interacts with your company.

Conclusions:

• Today's society moves quickly and is always connected. Companies are forced to seriously consider implementing a digital transformation strategy, if they have not already done so.
• Digital transformation offers your business the opportunity to engage modern buyers and meet their expectations, creating the perfect experience for your customer.

That said, digitally transforming your business can be quite a complex project.

So, here's how to get started:

Instead of purchasing on-premises solutions, think about cloud solutions first.

• Cloud solutions allow you to be agile and meet customer demands quickly. Plus, it automatically updates to the latest features, so you're never left behind.

Personalized experiences are what your customers expect.

• Uses data from your CRM software to evaluate previous correspondence, purchase history, and behavior to give them what they are looking for or may need.

Customers want seamless experiences regardless of the channel.

• Consider how to unite all the digital channels you have in your company, to provide a unique and easy-to-use customer experience.

By focusing on these factors, you will help your organization embrace the new digital landscape, exceed customer expectations, and improve their overall experience.

Have you started the journey to digital transformation?

Discover how at Lab9 we can help you on your digital transformation journey, providing free personalized advice.