How Business Leaders Can Leverage Digital Transformation for Better ROI
What comes to mind when you think of digital transformation? Is it automation or some realm of metaverse project management?
So what’s all the fuss about digital transformation, and why are all the companies, including SMBs, embracing such a revolution? You will understand the objective of digital transformation for businesses and how you can begin implementing it immediately in this post.
A Few Things to Consider
1. Consumer behavior is changing rapidly. Staying competitive requires knowing the ever-changing consumer dynamics and responding accordingly to satisfy customer needs. Knowing the ever-changing consumer needs accurately requires digital analytics and even predictive analytics.
2. The most productive companies in terms of operations and revenue are the ones with the best communication. Efficient communication depends on having teams that communicate within a collaborative network, getting real-time feedback rather than working in a silo.
3. The most successful organizations in terms of ROI are the ones with products that address customer needs and pain points instead of creating products and then looking for the customers that need them. In other words, they look for unique problems in the market and then create products that solve these problems.
4. Organizations that embrace an agile mindset succeed faster, and grow exponentially than organizations that fail to embrace it.
5. Regardless of size, and level of experience, the most successful firms are organizations that keep the best data and make the best use of these data in their decision-making.
Simple Ways To Adopt Digital Transformation
1. Digitalize Customer Experience
It is needless to say that customers are always looking for improvements on products and services. Meeting these demands requires you to closely monitor them, know what they truly want, and understand them even much better. Simple ways you can digitize customer experience involve the use of Live Chats to facilitate real-time communication and also promote customer retention through relationship building.
That’s not all, tracking the way clients interact with your business and how you manage the information associated with them is a great way to digitize customer service.
This is achievable with Customer Relationship Management (CRM) software. There’s no need to reinvent the wheels by hiring software developers. Tools like Hubspot and many more are great for managing customer data and even your sales pipeline.
2. Drive Performance Based On Data
What is not monitored can never be measured. When you don’t measure, you can’t tell how well you’re doing and you really cannot also tell which of your business activities are driving the best ROI. Business data analytics give you insight into which of your business activities to improve on and which ones lack the potential for profitability so you can focus resources on key business concerns.
3. Build Resilience Into Your Business Processes
Everything that happens within the scope of digital transformation is an opportunity for better performance. No surprise, the pandemic was even a big game-changer for some organizations regardless of their size. Building resilience involves leveraging technology that will enable you to continuously improve. This will also help you deploy regardless of your financial position and even when unprecedented circumstances such as during a pandemic hit.
How to Adopt Digital Transformation for Improved Efficiency & Profits in Your Business
To successfully adopt digital transformation, it must first be integrated into your business culture, and the ultimate goal should be towards creating a better customer experience and satisfying customer needs.
Doing this successfully starts with the mindset, and then this should be communicated to everyone in your organization. Digital transformation is not reserved for CEOs and top executives alone. It is for everyone contributing to the organization one way or the other regardless of what they’re doing.
Importantly, it is common for organizations looking to adopt digital transformation to assume that digital transformation is only for engineering firms.
But that’s not the case. Here are a few myths about digital transformation.
Myth 1: You need a large team of software engineers before you can start adopting digital transformation.
Myth 2: You need a large cloud infrastructure to start digitizing your business.
Myth 3: Digital transformation requires a fat budget.
The fact is that digital transformation involves majorly the inclusion of internet-based and digital-based tools to achieve operational efficiency, and ultimately business results.
More importantly, most of these tools are cost-effective compared to the task they perform. For instance, if you need a solution to collaborate with your team members, set deadlines, organize projects, and set goals, tools like Teamwork, ClickUp, etc., have features that can achieve all that and you can start using them for free.
Additionally, if you need analytics solutions to start monitoring behaviors on your website to get customer insights, tools like Google Analytics and many other web analytics tools can get that done for you. And you can get started for free.
But there’s something to note, gaining access to these digital transformation tools requires that you position your business digitally. This means that your business must have an online presence, it must be integrated on the web and your customers too must have their online signature. That is, the series of events that take place from clients purchasing your business should easily happen online from the moment they found themselves on your website till the moment they eventually purchased from you.
This positions you to be able to control the type of interaction they get when they engage with your brand online and how you react with them. You can categorize and personalize your prospects as well as their interactions with your website. With these, you can easily solve their problems and stay ahead of the competition. At the heart of the pandemic at the start of 2021, some businesses that embraced digital transformation reported record-high profits.
Both small and large business owners, regardless of their niche, from restaurants, to service-based businesses experienced improved sales and became even more profitable. On the other hand, businesses that refused to adopt that transformation faced losses and some even went out of business.
The essential point is that digital transformation can shield your business from unforeseen circumstances, enhance your speed, and efficiency, and ultimately enable you to engage in borderless business transactions and operational management.