Digital transformation is a broad term and involves tons of facets. So in simpler terms, digital transformation is a strategic initiative that uses technology that helps improve your business.
It can range from improving your CRM software system to help manage your Salesforce, robotics, IoT, or implementing Blockchain and so on.
However, are you overlooking your ROI in the path to transforming your digital strategy? Digitisation is an expensive affair. Implementing new technological aspects into your business model is risky, but it is inevitable.
Companies are adopting digital transformation across industries. However, in the eagerness to ignite your digital strategy, you may need to consider your return on investment (ROI) too.
Digital Transformation Metrics
Every business owner or digital transformation specialist is in the race to tweak their digital processes. However, a few parameters need to be kept in mind before you take the giant leap. So what are those?
- Customer satisfaction includes — retention, conversions, reviews, feedback
- Initiate sales and growth
- Implementation of new technology, design, and innovation
- Improved product and process quality
- Risk factors
Determining your Digital ROI
Adopting digital transformation can seem like a breeze for an established business or company, but it isn’t. Let us break this to you; digital transformation has its risks for enterprises, both big and small.
If you are new to the business and planning to introduce your brand, you may need to focus on your product quality, reach, customer satisfaction, etc. On the other hand, adopting new technology like IoT or Blockchain can take years of effort and funding for larger businesses.
So what do you do? It would help if you started working on an ROI framework to determine the success of your digital transformation strategy.
Factors That Measure Digital Transformation ROI
Here we have a few steps that can help measure and improve your business’s digital transformation ROI:
Focus on Business Goals
What are you expecting out of your business? Are you planning to gain more customers? Are you focusing on increasing your revenue? Figure out your business goals or concentrate on the deciding factors for designing your digitisation strategy.
If your goals align with your digital plan, you can reap maximum ROI for your business in no time.
Customer Experience
If your customer is happy, your business will grow and thrive. For a successful digital transformation plan, you need to consider how tech-savvy they are, their likes and preferences, expectations, and so on.
However, how do you keep a tab on your digital customers? Through feedback, reviews, and social media conversions, you can engage with them regularly. It will let you gain insights on customer feedback on your digital transformation strategy and how well it works for them.
Realistic Timelines and Goals
While digital transformation may seem like a great initiative to scale your business, you need to set your goals cautiously. Keeping unrealistic goals can lead you to trouble if you’re unable to meet the deadlines.
Make it Public
Why did your previous transformation project fail to take off? Probably because your customers or employees were unaware of it. Hence, it is vital to let the word out regarding implementing any innovation to your business model.
Adopt Efficient Technology
Digital transformation works its way to incorporate technologically advanced aspects into your business. In this essence, you as a business owner or marketer should not refrain from adopting high-quality tech just for the sake of saving some dollars.
For better productivity and value for the business, implement the latest in technology and innovation if you aim to skyrocket your business digitally.
Constant Tracking
Once you implement your digital transformation goals, you need to keep measuring the results over the period. It would help if you kept an eye on whether the model is transforming into sales, providing you with revenues, customer satisfaction, and so on.
Adopting new technology can significantly disrupt your business, either positively or negatively. For this reason, you may need to measure and track your progress for better ROI results.
Final Thoughts
So, if you think you are late for the party, allow us to tell you that you are not. Now is the time to create your digital transformation plan and implement it for real. A digital transformation strategy can be both a boon and a bane for businesses today.
Hence, it is vital to cautiously formulate your digital plan and analyse its success rate over a while. Digital transformation can do wonders for new as well as established companies. With the latest internet tools and broad digital landscape, it is time to get comfortable with changes and risks!
