88% of Organizations Are Undergoing a Digital Transformation
Digital technology is taking over the world as more and more businesses are beginning to implement digital initiatives into their marketing strategies. The year of 2014 has become the “digital year” with many companies improving their processes to adapt to the new trends of their competition.
A report from The State of Digital Transformation confirmed that 88 percent of large establishments are becoming a part of this movement, 10 percent have decided not to, and 2 percent are unsure of their future plans involving digital technology in their business.
The study defined digital transformation as
a movement under a customer-centric lens: The realignment of, or new investment in, technology and business models to more effectively engage digital customers at every touch point in the customer experience lifecycle.
What is Digital Transformation?
So what does the term “digital transformation” actually mean? Well, digital transformation can be defined in different ways to many different companies. Digital transformation is essentially uniting digital technologies (such as website displays, social media, ecommerce, email marketing, mobile websites, etc.) within a company to work together to build a strong brand presence.
The entire company has to be aligned in the goals and strategies with a digital transformation. Setting up a social media account and making a website responsive is not all it takes anymore to construct a comprehensive online presence.
Why the big movement?
The 4 greatest things that have compelled this digital transformation are the tremendous rise of social media, advances in mobile technology, the increase of importance to content development, and the effective rate of email marketing.
The other big conclusions of the report found that 71 percent of flourishing companies are leaning towards social media in their marketing campaigns, 63 percent are implementing mobile, and 59 percent are focusing on search engine optimization best practices. 80 percent of companies are improving their content creation, display, and marketing.
Some other noticeable areas of focus from companies undergoing digital transformations are:
- Researching target consumer behavior and adapting their company based on the data
- Constructing strong social media profiles and presences that beat out their competition
- mproving customer service strategies to satisfy clients
- Building solid brands with outlets such as websites, social media, email marketing, e-commerce, and mobile apps / responsive websites
- Updating websites
The Most Important Initiatives To Go Digital?
Here are the most important types of digital transformation initiatives as voted by industry professionals:
- Focusing on speed and usability to websites, apps, and products
- Updating websites, ecommerce, and more to adapt to mobile screens (i.e. responsive websites)
- Investing in the unification and brand building of a company to provide a consistent user experience. This includes social media, ecommerce, mobile, and more
- Analyzing data such as consumer behavior and traffic
- Building and updating various social media channels
- Over delivering services to go above and beyond satisfying customer needs and expectations
Advantages of Digital Transformation
There are many advantages of a company participating in the new digital transformation. Around 75 percent of companies have seen an increase in customer engagement and 63 percent has received positive ratings in customer satisfaction.
The 5 biggest benefits of the new digital age are:
- 49 percent increase in leads, sales, and connections
- 53 percent increase in website and blog traffic
- 46 percent increase in conversion rates
- 63 percent increase in customer service and satisfaction
- 75 percent increase in customer interaction and engagement
The Challenges Faced
When companies decide to take part of the digital transformation, there are risks and challenges with what it takes to achieve their goals in digital technology.
The top challenges faced when undergoing digital transformations are:
- Convincing executives to go along with the new change
- Effectively tracking how customers are reacting and connecting to new company procedures
- The company endures great change to their culture, processes, and company values
- The lack of appropriate resources, budget, technology, or time to successfully carry out their digital strategies
- The collaboration and participation between departments may be a difficult task to achieve
- There are a lot of legal and financial hazards (i.e data breaches) associated with bringing highly advanced digital technology into a company
This new technologically advanced world is taking a huge impact on businesses and how they operate. Developments in mobile, social media, email, ecommerce, websites and more are providing strategic opportunities to interact with, engage, and advertise to potential clients.
Many businesses are taking advantages of the new trends to improve their customer satisfaction, sales, lead generation, and are witnessing advantageous results.
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