Why is embracing the wave of emerging technologies and digital channels imperative for your business to not just survive but thrive in today’s competitive landscape?
In today’s digital age, businesses must adapt and embrace the power of technology to stay competitive. Digital transformation is no longer a choice, but a necessity for brands looking to thrive in the fast-paced world of marketing. From performance marketing to social media, marketing communication to content marketing, digital transformation offers countless opportunities for businesses to connect with their target audience and drive success. In this blog, we will explore 10 compelling reasons why your business should embrace digital transformation and how it can revolutionise your brand’s growth and profitability.
There is no alternative to digital transformation. Visionary companies will carve out new strategic options for themselves — those that don’t adapt will fail. – Jeff Bezos.
As per forecast there is an anticipated global spending of $2.8 trillion on digital transformation strategies by 2025, doubling the 2020 figure. This substantial investment is poised to empower organisations in executing comprehensive digital strategies spanning people, processes, technology, data, and governance.
Here are 10 compelling reasons why your business should not only invest in but accelerate its digital transformation journey. The future of your brand depends on it.
- Video Dominance: In today’s digital landscape, almost 92% of global internet users engage with digital videos weekly, spanning from music videos to tutorials and gaming. Print media, while still relevant, is overshadowed by the increasing hunger for visual content, as evidenced by the surge in platforms like YouTube. To effectively connect with your target audience, your business must embrace digital channels and touchpoints, making video content a central element of your communication strategy.
- Digital Natives Rule: Today’s college students have grown up in the digital age, rendering analog approaches to communication ineffective. In a world dominated by digital natives, traditional methods struggle to generate leads or drive revenue. To stay relevant and impactful, businesses need to align their promotional and internal communication strategies with the preferences of the digital-native demographic.
- Mobile Dependency: With 62% of Americans admitting to sleeping with their phones and 80% checking them within the first ten minutes of waking up, optimising content for mobile is imperative. Ensuring a seamless customer journey across devices, especially through social commerce and shoppable posts, is key to engaging customers in a mobile-centric world.
- Pandemic-Driven Transformation: The COVID-19 pandemic prompted an unprecedented acceleration of digital transformations, with some companies leaping ahead by a decade, according to McKinsey and Company. This shift underscores the importance of prioritising digital services and products to adapt to a changing marketplace and meet evolving customer demands. It’s a clear indication that ongoing digital adaptation is essential for businesses to thrive.
- Leadership Impact: Companies boasting a digitally savvy executive team outperform their peers by 48% in revenue and valuation. However, despite this advantage, only 7% of surveyed companies have leadership teams that are digitally competent. To drive a successful digital transformation strategy, it’s imperative that both employees and executives possess the necessary skills and knowledge of emerging technologies shaping business success.
- IoT Payback: Gartner reports that 63% of enterprises anticipate financial payback within three years for their Internet of Things (IoT) projects. Investing in IoT technologies, such as automation, chatbots, and voice search, holds the potential to accelerate commercial success. By leveraging the power of IoT, businesses can enhance efficiency and stay ahead in the competitive landscape.
- Digital Transformation and Financial Performance: As VALIOR report establishes a clear correlation between the level of digital transformation and financial performance. Companies advanced in their digital journey experience roughly twice the revenue growth rate of those in the early stages. This underscores the pivotal role digital transformation plays in achieving substantial revenue growth and business acceleration.
- Changing Revenue Landscape: Digital channels and technologies are reshaping how businesses generate leads and revenue. The New York Times reports that revenue from digital products and online subscriptions has surpassed print for the first time. Global giant Amazon is expected to reach $746.22 billion in ecommerce sales in 2023, emphasizing the transformative power of digital on the bottom line.
- Rising Digital Investment: The ‘CMO Survey’ reveals a significant uptick in investment in digital marketing activities from 2021 to 2023. Key areas of focus include data analytics, company website optimisation, digital media and search, and marketing technology systems. As the array of digital channels and touchpoints expands, strategic investments in these areas become imperative for sustained business success.
- Targeting Digital Natives: With almost one-third of the population under 20 years of age and over 60% under 30, businesses are dealing with a predominantly digital-native consumer base. To continually attract and engage this generation, investing in digital transformation is not just beneficial; it is indispensable. Understanding and adapting to the preferences of digitally-minded consumers is crucial for long-term success in today’s market.
As we wrap up this discussion on the importance of embracing digital transformation for your business, it is essential to emphasize the significance of this transition. The advancements in technology have brought about a paradigm shift in the way businesses operate and connect with their customers. By embracing digital transformation, your business can unlock a plethora of benefits. From streamlining operations and enhancing productivity to improving customer experience and gaining a competitive edge, the possibilities are endless. Digital transformation allows you to stay relevant in an increasingly digital world and adapt to rapidly changing customer demands.
Moreover, as we have explored in this blog, digital transformation offers numerous advantages in terms of risk mitigation, data security, and business continuity. By digitising and automating processes, your business can minimise potential risks and ensure that sensitive information stays protected.
