Digital transformation is “the realignment or new investment in technology and business models to more effectively engage digital customers at every touchpoint in the customer experience lifecycle” according to Brian Solis.”
87% of companies think that digital transformation is a competitive advantage (Capgemini Consulting)
85% say they have a digital transformation time frame of two years or they will suffer financially and fall behind their competitors (Business2Community)
67% of the CEOs of Global 2000 enterprises will have digital transformation at the center of their corporate strategy by 2018 (Forbes)
62% say their organization is in denial about the need to transform digitally (Progress)
Only 27% of companies say that their executives possess the skills necessary for digital transformation (Verndale)
Last week, I gave a webinar on digital transformation case studies. Digital transformation case studies examined include Amazon, Burberry, General Motors, McDonald’s, P&G and Starbucks.
Here are the stories for these companies in 10 inspiring case studies of digital transformation.
Do this case studies help you understand digital transformation? Are you looking to accomplish a digital transformation at your company?
Online reviews tell us where to stay, what to eat, when to go, how to get there and who to watch.
All of you reading this post right now not make buying decisions based on online reviews and most or you have participated in the review process yourself sharing recommendations and experiences with others. That’s what research shows.
Megan Arevalo. of Websitebuilders, has created a comprehensive Infographic of the research on online reviews and how they influence our buying behavior. Websitebuilders is a group of techies who have invested time, energy and money to review all the contemporary website building platforms to make a non-programmer’s life easier.
Here is the summary, 37 facts how online reviews impact what we buy, followed by Megan’s comprehensive infographic that contains many more facts and all their sources.
133% higher conversion rate occurs for consumers who view user-generated content
127% of consumers who read an online review are more likely to do it on a smartphone than a desktop
99% of businesses are hidden when a Yelp user sorts online reviews by “Highest Rated” or “Most Reviewed”
98% of consumers found that TripAdvsior reviews accurately reflect the actual experience
90% of consumers read less than 10 reviews before forming an opinion about a business
86% of people will hesitate to purchase from a business that has negative online reviews
84% of people trust online reviews as much as personal recommendations
84% of patients use reviews to evaluate physicians
83% of job seekers place their decision to apply to a company for a job based on online reviews
81% of females would not visit a restaurant which reports cleanliness issues from a review
77% of patients use online reviews as a first step in finding a physicians
76% of travelers said they would pay more for a hotel with a higher review score
72% of consumers say that positive reviews make them more likely to trust a local business
60% of job seekers would not apply to a company with a one-star rating; 33% would not apply to a company with less than a three star rating
59% of travelers say online review sites have the most influence on their booking decision
55% of consumers use Facebook to learn about brands
42% of travelers use review site when planning their holidays
37% of patients didn’t choose a doctor because of a bad rating
35% of patients choose a doctor because of a good rating
33% of travelers posted a travel-related review
31% increase in consumer spending is likely for a business with excellent reviews
Up to 30% of online reviews for certain products may be fake
27% of people trust online reviews only if they believe they are authentic
22% of consumers will not buy from a company after reading a negative online review; after reading 3 negative online reviews, that number jumps to 59%
20% of online review on Yelp are fake
18% uplift in sales is produced by reviews
16% of travelers share their hotel travel experiences online
11% room rate hike can occur for hotels that achieve a one-star increase on a five-star scale
10% of travelers spend more that 1 hour reading online reviews before making their booking decisions
10% of Google SERP (Search Engine Results Page) or search page entries are contributed by online reviews
5%-9% increase in revenue for every star a business gets
$350,000 in total fines among 19 companies was collected by New York regulators in a crackdown of fake reviews
50 or more reviews can mean a 4.6% increase in conversion rates
30 customers, on average, is what a single negative review costs a business
12X more trusted are consumer reviews that descriptions that come from manufacturers
5 positive online job reviews make up for 1 negative one
3.9X more likely are consumers to choose hotels, with equal pricing, that have the higher rating
Do these facts on online reviews reflect your behavior? Here they are, and many more, organized by industry, company and media type in Megan’s comprehensive and compelling infographic.
Digital advertising trends show digital is now the largest advertising channel in the U.S. Advertisers spending $60 billion dollars a year. Digital advertising is expected to be the largest advertising channel in the world this year with advertiser spending $202 billion dollars.
Growth isn’t slowing down, either. The uptick in growth is 20% versus year ago with social growing at 55% and mobile at 66%.
Proliferation abounds from new social networks, native ads, ad blockers, mobile ads, outsream videos, instant articles, programmatic advertising platforms and chatbots.
Here’s the summary, 7 biggest digital advertising trends for 2017, followed by the infographic which goes into greater detail.
AD BLOCKERS: In 2014, 15% of internet users in the U.S. used ad blocking software; it is 26% in 2016. In 2017, more digital advertising channels are expected to offer subscribers and viewers an ad-free experience, if they pay for it.
GOOGLE AMP AND FACEBOOK INSTANT ARTICLES: Mobile users are growing at a very fast rate and, with that growth, there is greater demand for faster loading speed and better consumer experience (UX). Google AMP and Facebook Instant Articles unveiled new platforms to reduce latency of loading. And you can bet they will be looking to monetize them.
FLAT DESKTOP AD REVENUE; EXPLODING MOBILE AD REVENUE: For the first half of 2016, digital advertising revenue scaled to $32.7 billion. Mobile ad revenue grew at 89% and represented 47% of total. Desktop revenue dropped -13%.
GOOGLE AND FACEBOOK CONTINUE TO RISE: In 2016, 78% of growth in digital advertising went to Google and Facebook. It is expected Google and Facebook will account for 61% of digital ad revenue by 2018.
PROGRAMMATIC ADVERTISING ALSO CONTINUES TO RISE: Programmatic advertising reefers to automated systems and data that media buying decision without human interference. The strategy for advertisers is a cost-effective way to promote their brands online with extreme precision. The IAB estimates that programmatic spending will grow to over 80% by 2018.
MORE OUTSTREAM VIDEOS: Outstream Videos are a new type of ad format that allows publishers to to show video ads in the text line breaks and corners of web pages. 77% of digital ad agencies say Outstream Videos will be critical to their client’s success in the coming years.
CHATBOT INVASION: WhatsApp, We Chat and Facebook Messenger are the leading messaging services. They are outpacing some of the biggest social networks in terms of monthly active users. As of now, 18,000 bots have been developed to help brands offer streamlined, individual service through chats.
Here is fuller explanation of what to expect in the infographic. Are you aware of these digital advertising trends? Are there any other you would include?
Successful digital companies are organizations that use technology as a competitive advantage in its internal and external operations.
Many definitions abound but, in a nutshell, this is what makes them successful. Like any major achievement, success doesn’t occur unless the transformation changes the company culture as much as is does the company.
In this article, we study common characteristics. Here are 10 terrific traits of successful digital companies with examples.
ARE UNREASONABLY ASPIRATIONS: Being “unreasonable” is a way to jar an organization into seeing digital as a business that creates value, not as a channel that drives activities. However the vision is described, if you aren’t making the majority of your company feel nervous, you probably aren’t aiming high enough. Burberry, in 2006, was a stalled business whose brand had become tarnished. A series of groundbreaking initiatives, including a website (ArtoftheTrench.Burberry.com) that featured customers as models, more robust e-commerce catalog that matched the company’s in-store inventory, and the digitization of retail stores through features such as radio-frequency identification tags leaped frog Burberry over competitors and tripled revenues.
ARE CUSTOMER OBSESSED: Knowing what the customer wants has always been the key to successful digital companies. Advances in technology and data science make it possible to analyze the complete history of customer transactions and identify individual shopping habits, patterns and motives that drive behavior. 86% of consumers say they were willing to pay more for a better customer experience. And 89% begin doing business with a competitor following a poor customer experience. This mind-set is what enables companies to go beyond what’s normal and into the extraordinary. If online retailer Zappos is out of stock on a product, it will help you find the item from a competitor. While it might seem heretical to buy from competitors, it’s worth it for Zappos because 75% of its orders come from repeat customers.
KNOW CUSTOMER LIFETIME VALUE (CLV): It is 6-7 times more expensive to acquire a new customer than it is to keep a current one. Successful digital companies recognize that, while customer acquisition is always important, there is often more to be gained be exploring ways to increase the Customer Lifetime Value (CLV) of current customers. According to a 2013 study by the Consumer Intelligence Research Partners, Amazon Prime members spend $1,340 annually. And that was 3 year ago. More important, Consumer Intelligence Research Partners estimates that Amazon Kindle owners spend approximately $1,233 per year buying stuff from Amazon, compared to $790 per year for other customers.
ARE SOCIAL MEDIA ADEPT: If your company is customer obsessed, then you’re constantly listening to what your customers have to say about your brand, your competitor and your industry. Successful digital companies not only listen, they are adept at doing something with this data. McDonald’s decision to serve All Day Breakfast may have been a surprise to some customers, but shows how the massive company is trying to move nimbly and take some risks with its messaging. “Customers were saying to us ‘Hey, McDonald’s, this is the next big thing. This is what we want from you,'” said McDonald’s USA Chief Marketing Officer Deborah Wahl. With help from Twitter and Sprinklr, McDonald’s found 334,000 tweets mentioning All Day Breakfast at McDonald’s and found the most “engageable” accounts to send customized messages.
ARE QUICK AND DATA-DRIVEN: Rapid decision making that is data-driven is critical in a dynamic digital environment. A cycle of continuous delivery, experimentation and improvement, adopting methods such as agile development and “live beta,” supported by big data analytics, are characteristics of successful digital companies. U.S. Xpress, a US transportation company, collects data in real time from tens of thousands of sources, including in-vehicle sensors and geospatial systems. Using Apache Hadoop, an open-source tool set for data analysis, and real-time business-intelligence tools, U.S. Xpress has been able to extract game-changing insights about its fleet operations. Data on the fuel consumption of idling vehicles led to changes that saved $20 million in fuel consumption in a year.
PREPARE THEIR INFRASTRUCTURE: To take advantage of all that a digital world has to offer, successful digital companies have to be willing to invest in digital-ready infrastructures that will accelerate their digital strategies and the digital experiences of their customers, employees or citizens. As part of its three-year IT overhaul following a brush with bankruptcy, General Motors closed 23 of its data centers worldwide and moved most of that capacity into two new data center in Michigan. Reducing the distance for data to travel was a huge financial motivator for the company to not only saves on networking costs but improved responsiveness. New data centers are ‘private-cloud-meets-mainframe’ operations that run cloud-ready apps.
KNOW THEIR METRICS: Metrics are a proxy for what matters most to senior management. But the measurements of success varies widely between marketing, tech management, and business unit leaders. This can creates conflict and confusion unless your company is clear about outcomes being measured. P&G created a single analytics portal, called the Decision Cockpit, which provides up-to-date sales data across brands, products, and regions to more than 50,000 employees globally. The portal, which emphasizes projections over historical data, lets teams quickly identify issues, such as declining market share, and take steps to address the problems in measurement the company considers critical to success.
OPERATE IN A DIGITAL ECOSYSTEM: A digital ecosystem is the detailed visual of how all digital and social assets of a brand interconnect and interact. When managing multiple platforms, it’s important to understand how they will all work together to achieve the brand’s goal. Starbucks offers the largest and most robust mobile ecosystem of any retailer in the world, with more than 12 million Starbucks Rewards™ members (up 18% year on year), 8,000,000 mobile paying customers with one out of three now using Mobile Order & Pay, and more than $6 billion loaded onto prepaid Starbucks Cards in North America during the past year alone. Starbucks digital flywheel has also continued to gain momentum with the launch of true one-to-one personalization.
PUT THE RIGHT LEADERS IN PLACE: The fast-moving digital world is exposing gaps in digital leadership, especially with regard to front office disciplines (those related to the customer experience) and head-office disciplines (those related to enterprise strategy). According to Gartner, three types of digital business leader have emerged to fill these leadership gaps: 1) Digital strategist, 2) digital marketing leader and 3) digital business unit leader. “A lot of our digital talent is home grown – mavericks who have their own businesses and have adapted their business in entrepreneurial ways. It is important to find these people and leverage their skills,” says David Crowley, Chief Commercial Officer, British Airways.
SHOW ME THE MONEY: Many organizations focus their digital investments on customer-facing solutions. But they can extract just as much value, if not more, from investing in back-office functions that drive operational efficiencies. Successful digital companies know the value of reducing the costs of doing business. One-third of the digital innovation projects at Starbuck are devoted to improving efficiency and productivity away from the retail stores, and one-third focused on improving resilience and security. In manufacturing, P&G collaborated with the Los Alamos National Laboratory to create statistical methods to streamline processes and increase uptime at its factories, saving more than $1 billion a year.
Are these traits you associate with successful digital companies? Any there others you would add? Is your company interested in developing the capabilities of successful digital companies?
Digital transformation is “the realignment or new investment in technology and business models to more effectively engage digital customers at every touchpoint in the customer experience lifecycle” according to Brian Solis.”
It’s important because the idea is to accelerate business in a strategic and prioritized way. Digital transformation serves as a major, maybe the ultimate, demonstration of change management.
Regardless of the definition and the desired results, digital transforming takes time (2 years by most estimates, planning and testing along the way. Plus, it requires a significant investment. What should you know to guide the journey?
Here are 50 digital transformation facts to manage company change.
90% of US consumers feel that organizations are disjointed in their digital connection, forcing them, for example, to repeat steps and information. (Verndale)
88% of companies report they are undergoing digital transformation (Altimeter)
88% cited customer experience (CX) as the driver for change. (Aria)
87% of companies think that digital transformation is a competitive opportunity. (Capgemini Consulting)
86% of organizations believe their organization should execute a business transformation initiative regularly just to stay competitive and relevant. (Verndale)
85% of enterprise decision makers feel they have a timeframe of two years to make significant inroads on their digital transformation before suffering financially and/or falling behind their competitors. (PWC)
82% of companies say that responsibility for overall leadership of digital transformation has been formally assigned to someone within the organization. (Apigee)
81% of companies cite their have digital department (Altimeter)
81% cite innovation is at the top of the digital transformation agenda. Right behind it is the need to modernize the IT infrastructure with increased agility, flexibility, management, and security (80%). (Aria)
80% of top managers view digital change as crucial for future business models (PWC)
76% of marketers think marketing has changed more in the past two years than the past 50. (Adobe)
71% of those responsible for digital transformation cite understanding behavior or impact of the new customer as the primary catalyst for change. (Altimeter)
71% of leaders said understanding behavior of connected customers is a top challenge they face. (Altimeter)
71% of digitally maturing companies say they attract new talent based on their digital vision, (versus 10% of early-stage companies. (MITSloan)
70% of change management programs fail to meet their goals, often due to a lack of planning for what happens post-launch (Verndale)
70% of executives have started the digital transformation of their supply chains. (Capgemini Consulting)
62% say their organization is in denial about the need to transform digitally. (Progress)
59% are worried its already too late (Progress)
55% of companies without an existing digital transformation program say the timeframe to adopt one is a year or less. (Progress)
Only 54% of have completely mapped out the customer journey. (Altimeter)
53% of companies cite “growth opportunities in new markets” as a driver to not only reach existing customers in better ways, but also expand markets. (Altimeter)
52% of senior executives cite a lack of familiarity with technology to be a barrier to digital transformation. (Sant ku)
51% of executives cited support from leadership as the top reason for success of a business transformation initiative. (Verndale)
51% of senior executives believe it critical to implement digital transformation in the next 12 months. (Sant ku)
50% of organizations surveyed do not have a well-established process for managing change to organizational structures and business processes based on new BI functionality. (Verndale)
Only 48% say they feel highly proficient in digital marketing. (Adobe)
48% of companies are not prepared to execute business transformation. (Verndale)
48% of respondents say their companies don’t have the necessary capabilities to ensure that change is sustained. (Verndale)
45% of executives expect digital to grow their revenue, and 25% of executives expect digital to create better customer experiences. (PWC)
45% of companies trust third-party vendors to support its digital transformation initiative to provide a better customer experience. 43% choose to do so to reduce burden on internal resources, and 40% do so to reduce liability and risk. (Verndale)
41% of leaders surveyed said they’ve witnessed an increase in market share due to digital transformation efforts, and 37% cite a positive impact on employee morale.
39% say their digital transformation efforts have helped them make strong progress in enabling real-time transactions. (Accenture)
39% of marketers plan to increase their digital budgets without increasing overall marketing spend, essentially reallocating existing budgets into digital channels. (CMO Council)
Only 36% of CMOs have quantitatively proved the short-term impact of marketing spending; for demonstrating long-term impact, that figure drops to 29%. (Convince and Convert)
33% say that their digital transformation efforts have helped them make strong progress in creating new sales channels; 25% say it has helped them make strong progress in accelerating product development. (Accenture)
33% of organizations see digital transformation as a huge challenge. (Sant ku)
32% say it has helped them make strong progress in improving the efficiency of operations. (Accenture)
Only 29% feel that implementing digital metrics and measurements was a critical component to enabling digital business. (Verndale)
Just 29% of companies have a multi-year roadmap to guide to digital transformation evolution. (Altimeter)
28% say it has helped them acquire new customers. (Accenture)
27% of senior executives rate digital transformation as now being “a matter of survival.” (Capgemini Consulting)
Only 27% of companies say that their executives possess the skills necessary for digital transformation. (Verndale)
Only 26% of managers at large global enterprises agreed that their analytics program had met or exceeded their expected business outcomes, and only 31% felt their digital initiatives did the same. (Verndale)
25% of companies have a clear understanding of new and underperforming digital touchpoints (Altimeter)
Only 22% of those surveyed cited having a content strategy in place that addresses customer needs at all journey stages. (Altimeter)
Mere 20% of leaders are studying the mobile customer journey/behavior. (Altimeter)
Only 5% of executives surveyed were able to claim they have a seamless customer experience across channels today. (Verndale)
$100 billion is wasted each year on digital and analytic business transformations that do not deliver what they promise. (Verndale)
Do these digital transformation facts guide your company’s journey. Does your company need help with digital transformation?