Digital transformation and digitization initiatives are becoming essential for businesses looking to stay competitive in today's quickly changing business market. These tactics improve consumer experiences and lead to new and creative opportunities in addition to streamlining operations.
Digital transformation is forcing companies to change their business models and adapt to the new market reality. What’s interesting about this is that it’s not the companies that are driving this change. Instead, this change is being driven by the customer.
Today, customers expect relevant content in relation to what they’re doing anytime, anywhere and in the format and on the device of their choosing. It's their journey that dictates your strategy. And to keep up with this new kind of “always-connected” customer, your business must embrace technology to deliver an unmatched customer experience.
Fortunately, putting the customer first is already at the center of many organizations' strategy. Research shows that 35% of business executives claim that digital transformation helps them to better meet customer expectations and improve operational efficiency (40%), and 38% of executives plan to invest more in technology to make it their competitive advantage. ...which explains the increase in digital spending. Back in 2018 the net global spending on digital transformation was approximately $1 trillion. Global digital transformation spending is projected to reach $3.4 trillion by 2026.
Additionally, businesses that invest in digital transformation are 23% more likely to acquire new customers. This significant investment underscores the growing importance of technology in driving business growth and customer engagement. In fact, 79% of companies admit that COVID-19 increased the budget for digital transformation. And 70% of organizations already have a digital transformation strategy or are working on one.
However, despite this forecast, we’re far from complete digital adoption. In their State of Digital Business Report, Progress revealed that 47% of companies haven’t started their digital transformation yet - while 59% are worried that it might already be too late for them. And there’s good reason to worry:
The same study found that 55% of businesses believe they have less than a year before they start to suffer financially and lose market share.
In today’s fast-moving, always connected and always-on society, companies are forced to seriously consider implementing a digital transformation strategy, if they haven’t already.
Digital transformation offers organizations an opportunity to engage modern buyers and deliver on their expectations of a seamless customer experience regardless of channel or place.