For most businesses today, there is that choice of going digital or not. However, with the world continuing to evolve its digital sphere, companies can’t help but go with the trend of offering online services to cater to a larger audience than just those in their bubble. Besides, not putting your business online can mean falling behind your competitors.
Going digital has become a new priority for businesses. We hear about different insights and strategies from various businesses in keeping up with the digital transformation, including using digital tools and technologies to run their operations. This article will walk you through the importance of going digital.
The Importance of Digital Transformation
Adopting a digital transformation can change organizational processes for the better. The upgraded systems, processes, and workflow affects each level in the organization, even down to its culture. Digitalization can create a framework to funnel a business’ data and service it to essential insights that can help every aspect of the operations be more efficient.
Taking advantage of digital technologies allows businesses to connect to customers and guide them through the buyer’s journey in a way that wasn’t possible before. However, not everyone would be able to fully grasp just how powerful and beneficial the digital world can be for a business, so we’ve listed some reasons below why companies should go digital.
Reasons Why Businesses Should Go Digital
1- Increased presence
For businesses to thrive, there needs to be engagement; and this engagement should be made available anytime that an online audience is looking for it. Companies must connect with their customers to stay relevant. It’s also notable that many people have been accustomed to finding what they want and need online within the last decade.
In fact, according to a Salesforce survey, 85% of consumers do their research online before a purchase. Of those consumers, the channels commonly used for research are websites (74%) and social media (38%).
Having a digital presence allows you to communicate with your customers online. Apart from this, the digital landscape has made the world a global market, allowing businesses to interact with their target market on the other side of the globe. Going digital will enable you to tap on more customers and get your name out to as many people as possible.
2- Competitive advantage
One of the impressive things about digitalization is the number of avenues it opens to businesses for growth. Most digital platforms have algorithms and analytics that can help a business zero in on what they’re doing wrong or right and where they can improve on. Using digital marketing tools can provide your business with a competitive advantage by allowing you to discover your niche as you see valuable insights from the tools.
Through the insights from the reports, you’ll be able to identify who your customers are, down to their demographics and psychographics. This gives you the chance to develop your strategy that best suits the audience. Furthermore, you’ll also know your competitors, compare your strategies, and maybe even integrate and improve on some of them to work to your advantage.
3- Better data collection
Many businesses are collecting data from customers but are not utilizing them effectively. Moreover, collecting data traditionally takes a lot of work. With digital tools, it’s become easier to collect relevant consumer data that you can use for your business. With definitive customer attributes like demographics and psychographics, you can build a customer persona that will help you focus your marketing on people that fit the description.
Apart from that, digital platforms with analytics and reporting tools can give you the information you need regarding who looks at your business, for how long, and for what reason. Gathering necessary information can help you build a better and more tailored marketing strategy to encourage customer interactions and, hopefully, customer transactions.
4- Strong resource management
Rather than having a dispersed database, using an online data or resource management tool or software collects and puts all necessary data in a single database. Digital transformation can integrate software, applications and databases into one place for central business intelligence.
Especially since all business data is sensitive and confidential, having a digital tool to help your business consolidate files would benefit the company and the people who make the business run. From sales to marketing, finance, legal, and even assets, every department’s files and data can be stored securely, equipping the team with tools that are easy-to-use so they can do their job seamlessly and effortlessly, without the fear of a mishap.
5- Adaptive customer experience
When you think about it, digital transformation does so much for your business. It enables you to manage your business better through automation and efficient analysis. It also helps you deliver a more seamless experience for your customers.
Customers have their own criteria to deem a business worthy of their continuous support. From customer support, email communications, digital products, and even the time it takes for a company to reach out to new prospects, they have high expectations for businesses. They also look at the product lineup, prices, and delivery. These expectations make the customer experience a battlefield for brands as they try to tick off as many boxes as possible to stay on top.
Before, the only important things to customers were how the product looked, how much it was, and if it was helpful. But since they’re now discovering and communicating with brands online, they’re looking for more—something more personal and human than just scrolling through the catalog and choosing a product.
Digital platforms allow you to reach out to your customers more relatable manner. In conjunction with the ease of use of your chosen platforms, you’ll be able to build up a great customer experience according to what your customers need at that exact moment, encouraging them to reach out to you and make a transaction.
6- Increased profit
Companies that use digital tools improve their overall efficiency, productivity, and profitability. Digital transformation does not only mean getting your business online. According to an SAP Center for Business Insights and Oxford Economics report, true leaders focus on true transformation. They say that true transformation is when it’s:
- An all-encompassing transformation of putting customer-facing functions first,
- investing in talent that would help businesses solve any problems that may arise during the transformation,
- investing in new generation technology to make their core processes more effective and cost-efficient,
- all while innovating and staying ahead of the competition.
A report by Datareportal, published in partnership with We Are Social and Hootsuite, stated that in October of 2021, there were about 4.88 billion internet users around the world or almost 62% of the world’s population and that 4.55 billion people were using social media in the same month. This is a significant number as it shows the power and relevance of the internet today.
With millions of people online, businesses can market to a global audience and increase brand awareness. However, with the increase in internet users, so does the number of competitors rooting for the same popularity.
The online sphere is so competitive that choosing not to be in it can cause a business’ entire performance to drop.
In September of 2021, Statista claimed that the average daily social media usage worldwide was around 2 hours and 25 minutes per day. Businesses have an excellent opportunity to market their products and services to a global audience in that time frame. With the internet becoming a 24/7 storefront for business, your audience can reach out to you anytime and anywhere. This is a chance to become relevant and stay relevant.
Since marketing is an ever-changing landscape, combined with the potential of technology and the internet to evolve and innovate continuously, who can say what the digital future holds? Businesses that adapt to the changes are more likely to evolve and reach more people. Therefore, adaptation is an integral part of staying at the top of your customers’ minds.
Technology provides a business with innovative tools, such as those used for collaboration. These tools can drive enhanced performance, increased productivity, and improved digital culture when provided to team members.
Technology offers a seamless way to collaborate among team members. It promotes upskilling and encourages digital learning of the team members.
Growth in Digital Transformation
There is no doubt that adopting digital transformation for businesses is a step towards innovation and better consumer knowledge. The shift can be daunting, but the results and benefits are worth it.
Digital transformation is a great way to adapt to the ever-changing landscapes of marketing and technology. The once far vision of integrating the two is now a reality that can’t be unchained. However, with the popularity of businesses going digital, you should note that growth in digital transformation is based on the nature of a business.
While most companies are encouraged to venture into the digital world, it is still essential to assess if digitalization will help solve your business needs. Study your brand and your problem and see whether you should transition small or go all the way.
Karl Pulanco is the Product Portfolio Manager for Yondu. He’s into photography which is not surprising as he is a travel junkie as well. While he enjoys working on product planning and custom software development, he has a soft spot for writing and occasionally contributes articles related to his work.