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The digital transformation process is an ongoing, dynamic and strategic shift in the approach to business. The digital transformation process has been described as a journey, which means that it's never-ending. It's not a destination but rather a set of choices, decisions and actions that can be made over time to achieve results.
Keep in mind that digital transformation is a process that takes time, money and a lot of effort. It's also one of the most exciting and rewarding things you can do for your business.
Furthermore, digital transformations involve changes to company operations and processes, but also require new skillsets for employees, new technologies and infrastructure, and new roles within the organisation. It’s not uncommon for companies to take years or even decades to complete their digital transformations.
The good news is that while digital transformation may seem like a daunting task, there are some key metrics you can use to measure your progress. These 5 metrics will help you understand how well your digital transformation is going and where there are opportunities for improvement:
1. Lead conversion rate. This is the percentage of leads that turn into customers. If your lead-to-customer conversion rate is low, then it means your sales team isn’t doing its job — or your marketing team isn’t doing theirs. Either way, something needs to change so you can increase revenue.
2. Repeat business rate. This represents how often customers come back and buy more products or services from you over time. If you don’t have a repeat business rate, then it suggests that customers aren’t happy with what they bought from you in the first place (or didn’t like the experience). In either case, this should be an area of focus for improvement.
3. Customer satisfaction rate (CSAT). The CSAT measures how often customers say they would recommend your company or product to others (and why). It’s also known as Net Promoter Score (NPS). NPS measures how likely customers would recommend your company based on their experience with your products/services and interactions with customer service representatives (CSRs). Companies with strong NPS ratings tend to have higher revenue growth than those with lower NPS scores because they have an easier time acquiring new customers while also retaining current ones.*
4. Customer Experience Metrics. These metrics measure how well your customers are experiencing your products or services. For example, you can track how many customers are using your app or website on a daily basis or how many subscribers renew their membership annually.
5. Productivity Metrics. These metrics measure the efficiency with which employees carry out their day-to-day tasks in an organization. For example, you can track how many hours it takes an employee to complete a task or how many leads were converted into opportunities within a certain time frame. Moreover, employee engagement is also measured under this metric. It is crucial for any company that wants to win in the digital transformation race. The more engaged your employees are, the more likely they are to be productive and innovative, which leads to better products and services for your customers.
6. Engagement rates and conversion rates. If you're conducting any kind of eCommerce site or social media campaigns, then measuring engagement rates and conversion rates will give you more insight into what's working with your customers and what isn't working so well (or at all). It's important to understand which actions users take when interacting with your brand online so that you know where future investments should be made — especially if they're increasing revenue and improving customer retention rates!
The digital transformation journey is one that will lead to the creation of smarter, more efficient companies. It's a process that can help you reach new markets and deliver more value to your customers. But it's also a process that requires you to make some significant changes to how you operate — changes that could have far-reaching effects on your business.
Here are 2 reasons why you should pay attention to your digital transformation journey:
1. Transformations create opportunity.
Digital transformations offer businesses opportunities to improve their bottom lines, cultivate customer relationships and gain new insights into what customers want — all while improving operational efficiency. These opportunities can help companies stay relevant in today's fast-changing marketplace.
2. The competition is already there. If you're not evolving with technology, someone else will take advantage of it first — and they might end up beating out your company for market share or other business benefits that come from being ahead of the curve on digital transformation trends.