What Digital Transformation Means For Business (And Why You Should Embrace It)
3 February 2020
Digital transformation has three stages. According to Tech One CEO Lars Jeppesen, here's how the transformation goes:
- Fixing the past. The first step is digitization. This is the collection of paper-based information and making digital copies.
- Revamping the present. Upon digitization of documents, organizations should then follow a paperless workflow.
- Creating the future. At this stage, the shift from manual and paper-based systems to digital ways happen. Innovations are invented, and the transformation begins.
Many Filipino companies go through these stages as they embark on their digital transformation journeys. In a survey done by Avaya-IDC Philippines, 60% of Filipino companies regard digitalization as a priority to drive more sales, boost productivity, and create better experiences for consumers.
The digital shift can be a bitter pill to swallow for some. However, it clearly becomes inevitable as digitalization takes place globally. Companies—both local and international—need to be well-equipped with the right tools that can help them position their brand in the now-digital universe consumers are in. Otherwise, they might not be able to keep up with the competition.
Instant communication and innovation are just some of the reasons why you should embrace digital change. Here are 5 more reasons that will inspire you to kick-start your transformation journey:
1. Brand Personification
A few years back, brands invest more in above-the-line advertising to reach clients and customers. Today, brands utilize social media to connect with their audience.
angkas bikers kapag nagkasabay sa stoplight pic.twitter.com/pgc6tpc8Pe
— Angkas (@angkas) November 20, 2019
Angkas, Philippine motorcycle ridesharing and delivery service company, their online persona through their social media pages. They developed a brand voice that resonates well with their target market.
Social media marketing made it possible for companies to humanize their brand. Through platforms like Facebook, Instagram, Twitter, or LinkedIn, brands interact with their target consumers. Like a real person! It’s now possible to cultivate an online community of devoted users who would support and put brands on a positive light. More than being a social networking tool, marketers use it as an avenue for effective interaction with their current and potential users.
2. Data Overload
Another reason why you should embrace digital transformation is the ease of data collection. Access to an enormous amount of knowledge about consumers has never been possible until the emergence of modern technology. With proper usage of analytics tools, it becomes easier to study consumer behavior and strategize based on these insights.
To help you use customer data to your advantage, ask yourself these questions.
- What is the company’s main goal? The key to getting the best out of the data you have is to know exactly what you want from it. Be very specific about what you want to happen. From there, you can identify which metrics are most important to your success.
- In which channels do my target audience engage the most? There are a lot of digital channels you can use right now. But that doesn’t mean that you should use all of them. Find out where your consumers feel comfortable speaking up and listening to you. This is how you’ll learn where to put your efforts on.
- Am I capable to analyze these data correctly? And if the answer is no, can you hire someone to do it for you? Remember: all the data in the world is useless if you don’t know what to do with it.
With all these advantages, what’s left for companies to remember are the responsibilities that come with data management. (READ: Data Privacy Act of 2012)
3. Unlimited Content Executions
If you stop and think about it, the amount of content that circulates in digital platforms may cause content shock to the digital audience nowadays. And yet, through the years, global internet users have only been hungry for more content.
By knowing your audience's online behavior, you get to know the types of content they are most engaged with.
What business organizations need is to stand out in the digital clutter. While this may be a challenge, it also opens a lot of opportunities. Marketers and business owners can now craft unlimited content in different formats. They can segment their audiences and talk to them through the channels they use the most. And sometimes, when the message gets across at the right moment, brand awareness increases for free.
4. Influencer Marketing
Digitalization also paved the way for a new breed of influencers to dominate online channels. These people have their very own 'tribes' whom they inspire to support a brand. This works for social causes, too.
Companies no longer need to hire and pay millions for celebrities to endorse their products and services. Micro and nano-influencers are now considered just as relevant and effective. Despite having relatively lower follower count, they produce more meaningful engagement.
5. Brand Loyalty Opportunities
In today’s digital world, companies have the capacity to create personalized experiences for their clients and customers. Having the chance to express their personality does that. Creating relevant content and having it backed up by online personalities make interactions authentic and credible. Knowing customer’s online habits through data helps them do that.
The more personalized the customer experience is, the more consumers develop a brand affinity.
Today’s generation will eventually take over the market. These people have either witnessed how technology has taken over the world, or have never known what it’s like to live without the Internet at all. There’s a new language that you must learn in order to pique their interest.
Challenging? Definitely. However, once you have made them loyal patrons of your brand, they become your greatest allies.
The key benefit of digital transformation is survival. True enough, there are some challenges that come with digital transformation. But if a brand wants to stay relevant now and in the foreseeable future, they need to evolve into what the world needs. Innovate. Invest in digital talent. Understand the customer journey through data. And create a powerful strategy based on this information.
It is easy to presume that digitalization is not for every industry. And yet, it is for companies whose ultimate goal is to stay ahead of any competition. Instead of waiting for the future, be the future.