How Digital is Transforming Markets
Maya Rector • March 25, 2020
Digital technology ranging from your favorite app to shop on to the way businesses interact with customers on social media is the new normal, although it would’ve been seen as cutting edge less than 10 years ago. This is a classic example of digital transformation, or the process of digital technology adapting and transforming along with consumers, their needs, and their values. Learn some helpful tips to get started on or enhance your digital transformation journey by reading below.
What Exactly is Digital Transformation?
Digital transformation
is the integration of new digital technology into all areas of a business, ranging from how a business operates internally to how it delivers value for consumers. Emerging technology also plays a role in cultural shifts, which often requires organizations to test out new mediums to not only stay ahead of the curve, but to stay relevant in the face of competition and changing trends. This might mean leaving behind preexisting or outdated processes altogether or simply incorporating newer digital methods alongside previously existing strategies. Digital transformation also goes hand in hand with consumer values and interests. For example, as the U.S. population has become more diverse and focused on social issues
in recent years, a boom in diverse and inclusive ads from brands incorporating digital have been proven to be effective since they not only combine tech that make the user’s life easier, but they also tell nuanced stories about integral groups that make up their audiences.
Why Should You Care?
Forecasts from IDC
predict that worldwide spending on new technologies and services for digital transformation will reach $1.97 trillion in 2022, per the (IDC) Worldwide Semiannual Digital Transformation Spending Guide. Aside from these numbers alone, digital transformation plays a role in the way consumers perceive businesses and the user experience involved in their path to purchase.
For instance, retail
specifically is rapidly growing in terms of the industry’s adoption of new technology. Whether it’s through collecting customer data through analytics, implementing digital online stores, or communicating extensively with audiences via social media networks, retailers are focusing on what’s up and coming - because today’s consumers expect nothing but the best. By satisfying the needs and wants of potential consumers, businesses are able to retain customers and gain new ones. Efforts to save time and make the experience as seamless as possible include e-commerce options, shopping apps, improved and straightforward supply chain processes, etc.
How are Brands Embracing Digital Transformation?
Check out the case studies below to see prime examples of how brands are leveraging digital transformation and innovation to appeal to consumer preferences while bolstering their businesses.
Domino’s Pizza
recently set out to create an innovative digital campaign to identify tensions in customers, culture, and category/brand, and discovered the following insights:
1) Cultural: “We live in a deeply divided and partisan country.”
2) Consumer: “I’m tired of there being so much hatred in America.”
3) Category/Brand: “There are so many options for pizza.”
Given these insights, Domino's debuted their Points for Pies campaign, which invited customers to upload photos of pizza to the Domino’s app - to celebrate “all types of pizza.” Customers could get 10 points for uploading a photo, and could redeem 60 points for a free pizza. For this to work, artificial intelligence aptly named the “pie-dentifier” was implemented to establish the presence of a pizza in real time, which took six months to build. The hard work paid off, and the campaign was a hit - app downloads went up dramatically, loyalty enrollments increased, and social sentiment improved for the brand. It generated more than a billion media impressions, most of which were generated within weeks of the campaign launching. Domino’s innovative strategy goes to show that combining tried-and-true savings incentives with the current day appeal of user-friendly technology goes a long way in winning over consumers.
Another example is the online clothing subscription service Stitch Fix, which has leveraged comprehensive data to grow their business in recent years and provide “personal styling for everybody.” The premise of the brand is simple - customers take style surveys and provide continued feedback of their preferences to receive curated style boxes each month. The results have been impressive with a reported $1.2 billion in sales and $45 million in earnings in 2018. So what makes them so successful? While there is a degree of prediction involved in curating the boxes, it’s backed by the power of data analytics down to every detail to drive the business in its entirety.
Stitch Fix has evolved with digital tech innovations while also keeping current customer preferences in mind and catering to all clothing audiences with a large range of sizes for men, women, and children. While many of today’s consumers still enjoy shopping in person, the company is able to provide a sense of the in-store styling experience from the comfort of their digital devices. Although data privacy and collection have been hotly debated topics, in Stitch Fix’s case, consumers are willing to offer data and feedback since it works in their favor by allowing them to receive personalized products suited to their style preferences. Ultimately, by leveraging digital, Stitch Fix has amassed a loyal customer base built off of convenience and customization.
In addition to being a huge year for focusing on customer experience, 2019 was crucial for brands who recognized the personal values of their consumers. For instance, in March of 2019, Shell released “The Great Travel Hack” campaign
to align with consumer interests and concerns around sustainability - especially regarding natural resources like oil. With 52% of consumers seeing brands as being responsible for the environment, Shell created a content series in five-parts with an aim to target eco-conscious consumers around the message of considering the way they travel to align with a lower carbon footprint future.
Shell opened the discussion to focus on how it’s creating the best of both worlds to make energy cleaner while also creating greater amounts of energy in the process. With a younger eco-conscious audience in mind, the campaign’s creative played into their interests of adventure and traveling coupled with their concerns for the planet’s future. By reaching them on their preferred digital platforms and tapping into eco-conscious consumer insights, the campaign was a success and launched a second season of the online content series as a result.
What about local businesses? Look no further, we’ve got you covered.
How Can Local Business Implement Digital Transformation to Drive Growth?
While local businesses most likely don’t have millions to spend on massive flashy campaigns, businesses big and small are wise to make the path to purchase as user friendly as possible and keep inclusive values in mind to maximize their prospective clients.
You may be relieved to know that although online shopping methods have without a doubt made waves, traditional storefronts aren’t going away - if they stay up to date and tap into the latest search tools, that is. According to a Think with Google study, mobile searches for “near me” have tripled in the last two years, and up to 80% of shoppers said they would shop in store if they have an item they want immediately. This is where multichannel strategies are especially handy. Across verticals, retail businesses that focus on hyperlocal search and strategy have seen click-through rate increases of 28% and store-visit rates increases of 57%.9 within one mile of their store.
This is just one example of how innovative digital solutions can complement traditional businesses and business models to drive store visits, potential leads, and overall growth.
What do Consumers Want?
Aside from their values and passion points, when it comes down to it, consumers want a seamless user experience and they also want value for their dollars spent. The online customer experience is so important to consumers that 72%
of internet users worldwide said a disconnected experience would make them change service providers or brands. This is why knowing the stats behind their advertising preferences
can make a world of a difference. It’s not as mysterious as people may think though, and considering that everyone is a consumer in one way or another, you’ll probably find that many of these preferences mirror your own.
For instance, a whopping 73%
of consumers dislike pop-up ads (unsurprisingly). People dislike them so much that up to 81%
have closed or exited a site after seeing them. Given this insight, it’s important to keep an eye out for pop-ups to avoid going overboard and driving potential clients away. Let’s also not forget that most of us can’t resist a good deal - which is why 72% of consumers
want brands to share their sales promotions and discounts via social media.The message is clear - give the people what they want. Deals promoted across the social media sites and digital platforms that they’re already glued to daily can provide just that.
Utilizing new digital innovations is vital to maintaining and growing a robust business, but keep in mind that some tried and true methods are still dependable - especially when they’re backed by the power of new technology to provide valuable insights. For instance, email remains a popular source of information. Whether it’s for business or personal use, many people check their email frequently throughout the day, making it a great place to reach potential customers. 86% of consumers
said they would like to receive promotional emails “at least monthly,” but keep in mind that emailing too frequently can be off-putting. Using the power of analytics to determine the behaviors of your email audience and their habits can help track your business’ progress to see how you’re doing - and help you optimize for success.
These are just a few examples of how businesses can learn from consumer insights and adapt with digital to maximize their marketing potential, but the message is consistent no matter what. Balance and catering to consumer preferences is key.
Takeaway
Digital transformation doesn’t have to be seen as a threat to your business and its services. In fact, when used in accordance with consumer values and preferences, it can result in game-changing growth for your company.
Contact one of our digital experts to learn more.
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