May 27, 2022
Regardless of your sector or industry, to thrive in today's commercial battlefield, your business needs to embrace the emerging technologies and digital channels that are embedded in the customer experience.
If you want to secure a sustainable future for your brand, investing time, money and energy into your digital transformation strategy is a necessity. It will help you engage with consumers, improve operational efficiency, reduce the time it takes to get products or services to market and drive innovation.
Experts at IDC predict that by 2025, spending on digital transformation strategies will reach $2.8 trillion globally, more than double the amount in 2020. This investment will help organizations to pursue a holistic digital strategy for people, processes, technology, data, and governance.
To inspire your efforts, here are 10 reasons your business needs to invest in and accelerate its digital transformation.
1. Nearly 92 percent of global internet users watch digital videos every week according to Digital 2022: April Global Statshot Report. This includes music videos and tutorials to gaming and influencers. Print media, while still relevant, is a less potent force than it once was. Today’s hunger for visual content is inherently digital (just look at the phenomenal rise of TikTok) and to connect with your target audience you have to offer engaging video content. Digital channels and touchpoints are the best way to deliver such communications.
2. Today’s average college student has never so much licked a postage stamp. In the age of the digital native, analog approaches to promotional and internal communication will struggle to provide the results you need to generate leads or drive revenue.
3. 62 percent of Americans admit to sleeping with their phone and 80 percent check their phone in the first ten minutes of waking up, states a report by Reviews.org. This just gives insight into how addicted and reliant people are on their mobile phones and digital technology. Make sure you optimize your content (blog, landing pages, emails, etc.) for mobiles and enable a seamless customer journey from one device to the other to ensure you engage customers and enable purchases through social media - social commerce and shoppable posts.
Here we explore the current professional climate and as such, the necessity for digital transformation.
4. The Covid-19 pandemic forced the acceleration of companies’ digital transformations, in some cases a leap of 10 years according to McKinsey and Company. This shows that companies have focused on digital services and products to compete in a changing marketplace and provide what customers want and need. While this level of adoption may have been unexpected, it’s the way that businesses need to continue operating to thrive.
5. Companies with a digitally savvy executive team outperform their peers by 48 percent in terms of revenue and valuation. Unfortunately, the same study published in Sloan Management Review found that out of 2,000 companies only 7 percent were led by digitally competent teams - a team where over half are digitally savvy, with an understanding of how emerging tech will shape their company’s success. It’s not enough for employees to be up to speed with digital, the executive team also needs to have the desired skills and knowledge to drive a digital transformation strategy.
6. 63 percent of enterprises expect they will receive financial payback in three years for their Internet of Things (IoT) projects, states Gartner. By investing in the power of the IoT through technologies such as automation, chatbots and voice search, you stand to accelerate your commercial success.
Insights on the undeniable power of digital transformation in the modern age.
7. There is a clear correlation between the level of digital transformation and financial performance, according to a report by Valior. Companies that are far along their digital journey had roughly twice the revenue growth rate of those who are in the first stages. With revenue generation being the primary goal of business growth and acceleration, this is a clearcut case for investing in digital transformation.
8. Digital channels and technologies are changing the way businesses can generate leads and make money. For the first time, the New York Times reported revenue from digital products and online subscriptions overtook print while global beast Amazon is predicted to see ecommerce sales to reach $729 billion in 2022 (despite a decrease compared to the bumper year due to covid-19 in 2020). This shows the power and influence of digital and its impact on the bottom line.
9. The ‘CMO Survey’ revealed that investment in digital marketing activities increased between 2021 to 2022. The top areas companies are investing in are data analytics (78%), company website optimization (74%), digital media and search (71%), and marketing technology systems or platforms (70%). The wealth of digital channels, platforms and touchpoints available are on the rise and by investing in such areas, you stand to enjoy a healthy level of ongoing business success.
10. Nearly a third of the population is under 20 years of age followed by 30 percent between 20-39 years of age. - With over sixty percent of the world’s population being under 30-years-old, there are more digital natives (or, budding digital natives) than ever before. To continue attracting and engaging this generation of digitally-minded consumers, investing in digital transformation is nothing short of essential.
Digital transformation is imperative to ensure the success of your business. And that doesn’t just mean you need the newest and most effective technologies, you also need a workforce that can drive transformation.
The most effective way to ensure your employees are up to the challenge - and up to speed with the most important digital skills - is to provide training. This could include short online courses that upskill an area like data analytics or SEO or it could involve a tailored program that covers the fundamentals. Whatever your company needs, it’s crucial to assess your digital capabilities and figure out where the gaps are that will help you achieve growth.
Invest in the digital knowledge and skills of your staff to ensure a smooth digital transformation. The Digital Marketing Institute offers tailored digital marketing and social selling training designed to suit the skill levels, aptitudes and needs of your workforce. Contact one of our consultants today to find out more.