How Digitally Transformed Businesses Became Big Sharks Of The Market
Digital transformation is the integration of digital technology into all areas of a business, resulting in fundamental changes in how businesses operate and deliver value to customers. It enables businesses to keep up with changing consumer demands and gain a competitive edge, leading to increased revenue and reduced costs.
The focus of this blog will be on the advantages of digital transformation through the examination of case studies from successful businesses. Our aim is to provide you with valuable insights into how digital transformation can enhance business operations and competitiveness.
Benefits of digital transformation
Below are some of the benefits of digital transformation.
1- Enhance Customer Experience
Digital transformation can significantly enhance the customer experience by enabling businesses to provide more customised and convenient services. By leveraging digital technologies such as artificial intelligence (AI) and the Internet of Things (IoT), businesses can gain a better understanding of their customers’ needs, and preferences and use this information to tailor their offerings.
i- Domino's Pizza
Domino’s Pizza launched an online pizza ordering system in 2007, allowing customers to order their pizzas online and track the progress of their orders in real-time. This level of convenience significantly enhanced the customer experience, leading to increased sales and revenue. In 2019, Domino’s reported global retail sales of over $14 billion, with a 17.7% increase in sales.
Sephora, the cosmetics retailer, uses AI to provide customers with personalised product recommendations based on their skin tone, skin type, and other preferences. This level of personalisation has significantly enhanced the customer experience, leading to increased customer loyalty and repeat purchases.
2- Improve Efficiency and Productivity
Digital transformation can significantly improve a business’s efficiency and productivity by automating manual processes and streamlining workflows. By leveraging digital technologies such as robotic process automation (RPA) and cloud computing, businesses can automate repetitive tasks and enable employees to focus on more strategic work.
HelloFresh is a meal kit delivery service that has leveraged digital transformation to streamline its operations and improve efficiency. HelloFresh uses robotic process automation (RPA) to automate manual processes, such as the creation and management of delivery routes. By automating these processes, HelloFresh has been able to reduce delivery times, improve order accuracy, and increase customer satisfaction.
ii- The Cambridge Satchel Company
The Cambridge Satchel Company is a luxury handbag brand that has improved efficiency and productivity through digital transformation. The company uses cloud computing to manage its supply chain and inventory, enabling it to quickly and accurately track its products and manage its stock levels.
3- Improved Customer Engagement
Digital transformation empowers businesses to connect with customers through various digital channels like social media, mobile apps, and email, improving customer engagement. Additionally, it provides businesses with invaluable customer behaviour insights that can enhance marketing strategies.
i- Birchbox UK
Birchbox is a beauty subscription service that delivers personalised boxes of beauty products to customers each month. Birchbox UK has leveraged digital transformation to enhance its customer engagement, by creating a mobile app that allows customers to rate the products they receive, receive personalised product recommendations, and buy full-sized products from the app.
ii- Sweaty Betty
Sweaty Betty is a UK-based active-wear brand for women that sell clothing, accessories and equipment for fitness and yoga. Sweaty Betty has used digital transformation to improve customer engagement by creating a mobile app that allows customers to book fitness classes, access workout videos, and connect with the Sweaty Betty community.
4- Improved Data Analytics
With digital transformation, businesses gain access to vast amounts of data that can be analysed to uncover valuable insights into customer behaviour, preferences, and trends. These insights can inform marketing strategies and tactics, enabling businesses to make data-driven decisions and optimise marketing campaigns for better results.
ASOS is an online fashion retailer that has leveraged data analytics to improve its marketing strategies and tactics. ASOS collects data on customer preferences, search behaviour, and purchase history, which is used to deliver personalised product recommendations and targeted marketing messages. ASOS also uses data analytics to optimise its pricing strategy and product offerings, enabling it to stay ahead of trends and meet customer demand.
Netflix is a streaming service that has used data analytics to inform its content creation and marketing strategies. Netflix collects data on user viewing habits, ratings, and search behaviour, which is used to recommend content and inform its programming decisions. By using data analytics, Netflix has been able to create highly personalised content recommendations, which has contributed to its success and growth as a business.
5- Greater Reach and Visibility
Digital transformation expands the reach and visibility of businesses through various digital channels, including social media, search engines, and online advertising. This increased exposure attracts more customers and builds brand awareness.
A recent ad campaign by McDonald’s, called ‘Fancy a McDonald, has been recognised for its “exceptional” brand recognition score of 98 by effectiveness firm System1. The ad, created by Leo Burnett UK, deviates from the usual format of showcasing restaurants or food and instead subtly features McDonald’s iconic assets. Using a raised eyebrow signal, the ad depicts office workers inviting others to enjoy McDonald’s food without speaking. The high recognition rate of 98% among the 150 consumers tested on System1’s platform, compared to an average score of 91% in the category, demonstrates the strength of McDonald’s brand recognition strategy.
In 2020, Starbucks launched a social media campaign on Instagram called “#WhatsYourName”. The campaign aimed to promote inclusivity and diversity by encouraging customers to share the stories behind their names. The campaign generated over 64,000 Instagram posts using the hashtag #WhatsYourName, and the campaign video received over 3 million views on Instagram.
To sum up, digital transformation provides businesses with numerous benefits. Adopting digital transformation is crucial for businesses to remain competitive in today’s rapidly changing digital landscape. Failure to embrace digital transformation can result in losing market share and falling behind competitors. Therefore, investing in digital transformation is essential for businesses to gain a competitive advantage, increase revenue, improve customer satisfaction, and reduce costs.
We hope you found this newsletter informative and valuable. If you need help with your digital presence? Let our experts guide you through the process of digital transformation and take your business to new heights. Contact us today!