Why Is Digital Transformation More Important Now Than Ever?

Last year we saw the most unpredictable digital transformation. More specifically, I should say that it was just a first step towards the complete transformation. If we consider completely changing the way we work or the tools we use, I think there is still a long way to go.    

According to a survey conducted by BCG,

“Almost 90% of recent digital transformations have included customer-facing initiatives such as digital marketing, personalization, and streamlining the customer journey among their primary goals. This trend can be expected to grow as digital channels become more critical to business continuity.”  

What is digital transformation?   

Digital transformation changes the way you provide value to customers by integrating digital technology into every single area of your business.   

It doesn’t only need tools/resources to digitally transform your operations but a cultural shift is equally important.  

“We are approaching an important milestone in digital transformation investment with our forecast showing its share of total worldwide technology investment hitting 53% in 2023.”

– Craig Simpson, Research Manager at IDC’s Customer Insights and Analysis Group   

What are the different elements of digital transformation?  

1. Customer experience

To know your customers, it’s very important to have an internal system that manages & tracks their activity. You must have their data stored in one place which can be used to make the decision for a better customer experience.   

Internal CRM systems are the best example of using customer behaviour data to enhance their experience with your brand.   

It helps you answer the following questions –  

• Which customers have a similar purchasing history? 
• Which services/products do they buy more often? 
• What are some of the frequently asked questions by them? 
• Is there a specific pattern in their buying behaviour? 

And many more.   

2. Products and services

Digitising the customer experience has become a major priority now. You’ll find that companies are focussing more and more on selling an experience rather than a service/product.   

To accomplish this, organisations need to find out different ways in which they can virtually stay in touch with the customers along the journey.   

3. Operations 

Giving employees the freedom to work from anywhere, anytime is the single, most important benefit of transforming your operations digitally.   

We can streamline everything from the logistics to creating uniformity in the processing platforms and finally enabling employees to work from any part of the world through mobile platforms.   

4. Organisation 

You can also digitise the complete organisation by implementing all the points mentioned above. Usually, it is really difficult to digitise each and every part of the organisation if everyone is not on the same page.   

So, it becomes very important to start making small changes & building the culture slowly before the complete transformation.    

What are the benefits of digital transformation? 

1. Enhanced customer experience

Digital transformation allows companies to enhance customer experience because they can engage with their customers in the channel they want to provide a seamless experience.   

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The goal of streamlining your internal systems is ultimately being able to provide outstanding customer service.   

For example, you can see that a lot of companies have integrated their internal CRM with other tools. The main reason is to be in direct/indirect contact with the customers through a single channel (that they prefer).   

2. Reduced costs

The more you centralise your systems, the less you need to spend on deploying individual solutions. This saves a huge deployment cost and saves you hours of handling multiple systems.   

Not only this but the cloud system saves you from huge expenditures when you transform as an organisation.    

Most of the tools that run in the cloud offer “pay as you use” principles to accommodate your services according to your business.   

3. Better analytics 

Analytics helps you find answers to some of the most crucial questions of your business – 

• What are the customers searching the most on your platform? 
• What is the most frequently raised query for your product/service? 
• What is the major reason some customers are dissatisfied? 
• Which customers are most active on your site? 
• What is the main objection of prospects who don’t buy from you? 

Also, if you integrate all your tools, you can track each and every aspect of the customer journey in one place.    

For example, if you integrate your CRM with any third-party application, you get a holistic view of how your customers experience your products.    

4. Increased efficiency

You can use the saved time which was otherwise wasted in the manual processes to focus more on strategic implementation.   

This ultimately results in increased productivity throughout the team.   

5. Increased ROI 

You are going to have a better ROI when you digitise most systems inside your organisation.   

The internal systems will be well-managed resulting in a better customer experience which ultimately brings repeat business. Also, targeting new customers becomes easier with a smart system.   

6. Competitive advantage 

Speed is everything in business. If you bring new features faster than your competitors, you’ll automatically enjoy the first mover’s advantage here.   

7. Innovation

Companies who innovate are going to be way ahead of the curve. Finding innovative ways to do the same tasks is what makes some organisations turn into well-established brands faster than others.   

What should your action plan be? 

While you focus more on digitisation, it is very important to start with updating your legacy systems.

Brands like Decathlon & JCDecaux are getting ready for increased digitisation and remote working through modernised legacy systems.   

The sooner you start, the faster you can leapfrog the competition.