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Digital technology has revolutionized many industries, from retail and healthcare to telecommunications and shipping.
By streamlining processes and making information more accessible, digital tools have made it easier for businesses to operate and grow. As a result, more and more companies are investing in digital initiatives to stay competitive.
The COVID-19 pandemic has also been a significant catalyst for digital business initiatives. Many companies have realized they will become invisible to customers if they don’t start digitizing their operations.
The pandemic has forced businesses to re-evaluate their reliance on brick-and-mortar locations and move to a more digital model. It has increased online sales, contactless shopping, and other digital technologies. Statista projects that companies will almost double their digital transformation spending between 2022 and 2025.
It helps you boost your customer experience optimization efforts by allowing you to bring loyalty cards, membership cards, or coupons to their mobile wallets and provide a connected customer experience.
To see how PassKit works, start your 45-day free trial.
In today’s article, we’ll delve deeper into digital transformation benefits and explain how PassKit helps you jump-start your journey. Let’s start by defining digital transformation.
What is digital transformation?
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Digital transformation (DX) means adopting digital technology to improve business performance. The goal is to create new and transform existing business models, strategies, and experiences.
However, this often requires a shift in thinking away from traditional methods. Companies adopting digital transformation can encounter challenges, but the rewards can be significant. By embracing digital transformation, companies can position themselves for a bright future.
What are the key drivers of digital transformation?
Digital transformation is driven by two primary factors: customer expectations and consumer trends.
Consumers today want to access information and interact with brands on their mobile devices, social media, and the Internet of Things (IoT). This shift in how consumers behave and expect to be treated puts pressure on businesses to change how they operate.
By understanding these drivers of digital transformation, businesses can better position themselves to take advantage of the opportunities presented by the digital age.
Let’s explain in more detail why going digital is essential.
The importance of digital transformation in today’s world
By bridging the gap between businesses and consumers, digitization has made it easier for companies to reach their target audiences. No matter where consumers are, you can always reach them through digital channels.
Digital transformation can also improve business processes and workflows, making them faster and more efficient. By leveraging workflow automation and advanced data processing technologies like artificial intelligence (AI), businesses can get valuable insights to improve their operations.
Data is vital to digital transformation, as it also helps businesses better understand their consumers and enhance customer experience strategy.
In short, digital transformation is essential for businesses to stay competitive in today’s market. Companies can use the latest technologies to improve efficiency, reach more customers, and provide a personalized customer experience.
Digital transformation statistics that explain everything
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Digital transformation is one of the hottest topics in business today. What do the statistics say about its impact? Let’s share some information.
- 87% of business leaders predict digital transformation will disrupt their respective industries
- 70% of surveyed companies want to use digital technology to simplify workflow and current processes
- Experts expect that the DX market size will grow to $1247.5 billion by 2026
- Technology adoption has increased since the COVID-19 pandemic
So how do these stats relate to your businesses?
They show that a digital transformation is no longer an option – it’s a necessity. To stay ahead of the competition and future-proof your business, you must start planning your digital transformation journey today.
How digital technologies boost your digital transformation efforts
Digital technologies are revolutionizing the business world, giving companies a competitive edge like never before.
Mobile platforms, cloud computing, machine learning, and artificial intelligence are key technologies driving this change.
- Mobile platforms allow you to reach your customers where they spend most of their time – on their smartphones. For example, PassKit, our customer loyalty platform, helps you design a loyalty program and allows customers to store their digital loyalty cards in mobile wallets such as Google Wallet or Apple Wallet.
- Cloud computing lets you quickly access new updates, features, and functionalities without waiting weeks to set up the software. Everything is available on the cloud, making it a highly efficient way to do business.
- Machine learning and artificial intelligence collect customer data and offer valuable insights that help you make informed decisions and improve your business strategy. Your marketing and sales teams can use this data to develop methods to help your company grow.
Digital technologies help you drive transformation and meet your business goals faster. Does digital transformation come with any challenges? Let’s find out.
What are the common challenges associated with digital transformation?
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There are many benefits to digital transformation, but before explaining them, let’s first look at some of the challenges organizations face when undergoing this process.
1. Lack of a clear vision or strategy
Businesses need to have a clear and concise vision statement. It ensures that all employees and stakeholders are aware of the company’s mission and how they can contribute to its success.
Without a strong vision, businesses can quickly derail, especially in digital strategy. Ensure your team is on the same page by keeping your vision at the forefront of all your planning.
2. Lack of leadership support and commitment
Business leaders are the face of your company – they should accept the changes first and pave the way for others to do the same.
They should be the first to adopt new technologies and processes and show others how to apply them. They should also be open to employee feedback and willing to adjust their methods to run your company departments successfully.
3. Lack of resources
Your strategy should include an overall cost of DX, which will help you understand the financial impact of implementing digital technologies.
While trying all tools at once may be tempting, you may realize that you need more resources. In that case, focus on digital processes and tools that help you maintain a competitive advantage.
There will come a time when you can afford everything, but in the meantime, you must ensure you’re still in the game.
4. Rigid organizational structure
Digital transformation can be daunting for any business. You may need to change your organizational structure to ensure it goes smoothly.
By giving your employees freedom, you can show they can try new things without fearing the consequences. It will ultimately lead to a more productive and innovative IT department.
5. Resistance to change
Employees may initially resist digital tools and new processes because they think they can complete tasks without them. However, you can train employees and offer leadership support to help them transition to new tools.
There are many benefits to digital transformation, which include increased efficiency and productivity, improved communication and collaboration, and access to new technologies and data.
By paying attention to employees and providing the necessary support, companies can overcome challenges and reap digital transformation’s rewards.
Despite the challenges, the digital transformation benefits make it worth the effort. Let’s discuss the most common ones.
12 Digital transformation benefits for your business growth
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DX can help organizations in many ways. Here are the key benefits of digital transformation to take advantage of.
1. Increased productivity and efficiency
Digital technologies lead to improved efficiency and productivity. Tools and software speed up processes and ensure employees finish work on time.
Let’s say that you run loyalty cards for business. You can ask the marketing team to monitor data to understand your customers better. It is a time-consuming process.
You can shorten it by incorporating PassKit into your workflow. Our digital loyalty card solution keeps track of your consumers’ purchasing behavior automatically and collects accurate loyalty program data.
You can use our analytics to anticipate consumer trends and offer incentives encouraging customers to repeat purchases.
To evaluate PassKit features, start your 45-day free trial.
2. Easier collaboration and communication
If you want to encourage collaboration across teams, digital tools are the way to go. With DX, you can create a digital culture where communication and team spirit flourish.
DX can help you get tasks done quickly and efficiently by closing gaps and bringing people closer together.
3. Improved decision-making
Organizations have always collected data, but in recent years the volume and accuracy of that data have increased exponentially. However, most companies are not taking advantage of this data because they lack the tools to gain insights.
Choosing the proper tools will allow you to analyze data correctly and react quickly to changing needs. Without these tools, you’ll be at a disadvantage against your competitors.
4. More streamlined business operations
Digital transformation can help you become more operationally efficient by automating repetitive tasks and processes.
It can free up time and resources you can use more effectively elsewhere. A streamlined and efficient business operation improves productivity and the bottom line results.
5. Faster response to changes in the market
If you want your business to survive and thrive in today’s competitive market, you need to be flexible and willing to change. That means modernizing your operations and adopting a digital transformation strategy.
With the right tools in place, you’ll be able to respond to changes quickly and effectively. That’s because you’ll clearly understand what’s happening in your market and what your customers want.
6. Enhanced customer service and satisfaction
According to a McKinsey report, consumers want fast and efficient service. They have high expectations because dozens of brands compete for their attention. They can quickly turn to another brand if you don’t improve customer service.
Digital transformation technology gives you access to analytics and predictive forecasting. You can use this to learn from past mistakes and anticipate the future. That way, your customer service team can deliver the experience consumers crave.
7. Greater competitiveness and profitability
Digital transformation can change your entire business. Another reward is in store for you when you improve operations, make informed choices, and work on your customer service.
You gain a competitive advantage and become more profitable. According to statistics, 56% of CEOs stated they increased revenue because of digital improvements.
8. Broader reach to customers and markets
Breaking into new markets can be challenging, but with social commerce, it’s now easier to reach consumers wherever they are. Social commerce includes using social media platforms to facilitate commercial transactions.
It allows businesses to connect with consumers in new and innovative ways. It also breaks down barriers, making it possible to reach a wider audience and take your business to new markets.
9. Effective use of resources (time, money, people)
Integrating apps into a single platform is one of the most significant digital transformation benefits. It can enable business intelligence by ensuring you use your resources effectively and employees use their time more efficiently.
Having everything available in one place can save you the money you would otherwise spend on multiple apps, and it can help employees be more productive by avoiding the need to go back and forth between apps.
10. Higher employee engagement and motivation
Employees are aware of essential goals because of digital transformation. They know what to do, which resources to use, and what results they need to achieve.
HR software tools help you set their goals and connect them to managers. All of this increases their motivation. Engaging employees who feel like their contribution and performance matter is effortless.
11. Increased innovation and creativity
Digital transformation has created new opportunities for organizations across industries. They can now create products and services that were not possible a few years ago. For example, gyms can now offer online workouts, and retailers can make their products available online.
Businesses can reach a larger audience than ever, regardless of location, and use innovation and creativity to become more competitive.
12. Richer digital customer experiences
Digital transformation can deliver richer digital customer experiences. It converts your business into a digital one. People use cutting-edge technology today, so, logically, you will use it to improve your customer experience.
Consumers can do everything online or on their mobile devices. For example, they can use digital membership or loyalty cards and throw the physical ones away. To provide this experience to your customers, you must start using digital loyalty software such as PassKit!
Just by accessing Google Wallet or Apple Wallet, customers can see their points, redeem rewards and enjoy all the benefits you offer. Don’t make them carry physical cards around—go digital with PassKit!
Since we discussed all key digital transformation benefits for your business, let’s explain how to use PassKit if you are a business owner who wants to switch from a traditional loyalty program to a digital one.
10 reasons to use PassKit in your digital transformation journey
The digital transformation journey can be tricky, but you can make it a breeze with the right tools.
PassKit makes it easy to say goodbye to plastic and paper loyalty cards and create digital coupons, membership cards, and loyalty cards while improving your customer experience and increasing customer loyalty.
You can promote and distribute your digital loyalty cards on multiple digital channels and track the success of your loyalty program with our advanced analytics.
Our platform helps you streamline your digital transformation journey, making it more efficient and enjoyable for you and your customers.
So why wait? Start your 45-day free trial.
Since we explained the basics of PassKit, let’s discuss all the important ways how our customer loyalty software helps you transform your traditional loyalty program.
1. Increased customer engagement and loyalty
A digital loyalty program is the best way to increase customer engagement and loyalty. PassKit allows you to launch your program without help from the IT or designer team. You also don’t have to build a custom app.
It seamlessly integrates with Google and Apple Wallet to help you provide a connected customer experience to your loyalty program members.
With PassKit, every customer receives a customized loyalty card to track transactions, points, and rewards. Because the card is stored on their mobile device, they don’t need to carry a physical card or a wallet.
It makes it more convenient for customers and helps you save on printing costs.
2. Greater insights into customer behavior
The modern customer is challenging to please. Although they expect quality products or services, they also want a unique experience. You need data to understand what kind of experience they demand.
PassKit collects your loyalty program performance data and helps you know what customers want and need. You can also track specific metrics to evaluate how consumers interact with your loyalty program.
The data is helpful as it informs you whether you need to make improvements, change your offers to better suit customer needs or find new ways to engage them with your business.
3. Easier management and measurement of marketing campaigns
Improving marketing campaigns is always a priority. PassKit ensures you boost your campaigns and encourage customers to keep coming back.
- Email marketing
- SMS marketing
- Your website
- Paid ads on Google or social media
- Social media profiles
- Receipt marketing
- In-store advertising
- POP marketing
- Retail marketing
- Location-based marketing
- Permission-based marketing
- NFC payment
Create marketing campaigns that drive people to use your loyalty program, boost your offers, and increase your reach.
4. More targeted marketing efforts
There’s no doubt that permission-based marketing is the best way to reach your target audience.
PassKit makes it easy to gain customers’ permissions and distribute your loyalty program across multiple channels, as customers can confirm they want to receive promotional messages and notifications.
For example, you can send location-based reminders. If a customer passes by your business, PassKit will notify them of their unredeemed reward, a coupon that will expire soon, or a limited-time offer. It will remind them of your business, motivate them to visit your place and increase foot traffic.
5. Reduced customer complaints
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PassKit makes shopping and payments easier for your customers. They can use rewards or collect points in just a few seconds by accessing their mobile wallets. It makes your loyalty program more accessible and easier to manage.
As a result, you won’t spend much time on customer service since your customers will leave your business satisfied.
6. Increased sales and market share
When spending their money, customers need incentives to keep them returning for more. With PassKit, you can share offers and discounts that will make them want to purchase from you repeatedly.
It will also help make your business more popular than your competitors since you’ll have a better offer that will allow you to acquire more customers.
7. Enhanced brand visibility and awareness
With PassKit, you can get numerous customer loyalty program ideas and build a recognizable brand. Satisfied customers will recommend your brand to their friends and family, expanding your audience base. You can create a loyalty program by offering unique rewards and benefits to help your brand stand out.
8. More efficient operations and reduced costs
Thanks to PassKit, you can easily create custom loyalty programs without spending money on app development. You also don’t need coding or design skills.
With our tool, you can design and edit your program in any way you want and then deliver it to Google and Apple Wallet with just a few clicks.
Not only does PassKit save you money, but it also increases operational efficiency. All the information about your loyalty program is available in one place, so you don’t need any other software to track its performance. Thanks to our automation features, you don’t have to do anything manually.
9. Increased customer retention rates
By tracking data such as the number of installed and uninstalled digital cards, and the number of enrolled members with PassKit analytics, you can make changes to keep your program engaging and successful.
You can also track which channels bring you the most customers and understand their preferred mobile wallet. With this wealth of data, you can adjust your offer and increase customer retention rates.
We also wrote an article on customer retention examples to give you more ideas and get you inspired.
10. Greater competitive advantage
With PassKit, you can expand your offer beyond digital loyalty cards, membership cards, or coupons. You can create all sorts of digital passes, such as event tickets, boarding passes for airline loyalty programs, gift vouchers for your beauty rewards program, and more.
With so many options, it’s easy to gain a competitive advantage in a shorter time frame.
Digital transformation benefits: Wrapping up
Digital transformation benefits show how crucial it is to modernize your business. The market is changing and becoming more competitive. Only the organizations that adjust and adopt new approaches will thrive.
PassKit ensures you go through your digital transformation journey quickly and smoothly. Create digital passes, coupons, membership cards, or loyalty cards yourself – no coding knowledge required!