The demands of modern customers are causing industries to change how they interact with customers. Nowadays customers have high expectations about a company’s online accessibility. Gone are the days where customers are content with only a catalog of products to choose from and an occasional coupon code sent to their house through the mail. Customers want to be constantly connected to companies using technology so that they can have an amazing customer experience. Customers want tailor made content that is related to what they are doing all the time and on whatever electronic device they choose.
What is digital transformation?
According to Salesforce, digital transformation is defined as the process in which businesses use digital technologies to either create new or modify currently existing business practices and customer experiences to meet everchanging business as well as market requirements.
In other words, digital transformation is when a business changes how they interact with the clients and how they provide these services to these clients. Clients in modern times want to have the same experience on whichever device they may choose to use.
What incentivizes digital transformation is the amount of increased profits companies can obtain from creating very engaged customers. These engaged customers are 6 times more likely to try a new product from their preferred brand. Also, these kinds of customers are 4 times more likely to refer the preferred company’s brand to someone else. Additionally, this kind of highly engaged customers have a significantly higher chance to buy 90% more often, spend 60% more on each purchase, as well as having 3x the annual value compared to the average customer who isn’t highly engaged. It’s no wonder why companies are instituting digital transformation practices these days since they can enhance their profits significantly if they do so.
The digital customer
The modern digital customer is constantly connected to the technological world, knows their way around applications, and is aware of the capabilities of technology they have at their disposal.
If companies want to switch to a digital-focused strategy, they need to make a lot of changes. Take a company’s marketing strategy for example. Instead of cold calling, businesses need to focus on reaching out to customers on social media. People these days are already on social media, and they want companies to reach out to them on social media. That way companies can build a relationship with the customer, help them become educated in the company’s area of expertise, and create highly engaged customers. It also means that if a company shifts to social interactions on social media, then they need to spend less money on real world marketing actions such as billboards and direct mail.
This article was written by Ian, an intern at Irish Mortgage Brokers and Yes.ie from the USA.