The key to a successful digital transformation is understanding why you are doing it. Change for change’s sake is rarely an improvement. If you are uncertain where to start, you can find inspiration in other companies’ success stories. The following four companies are not typically considered tech companies but have had great success using technology to elevate their customer experience.
What is more appealing than a discount? A discount on items that you buy regularly. Sephora began their digital transformation journey with personalized email campaigns. By analysing the data gathered through people’s purchase histories, Sephora was able to offer discounts and deals tailored to the individual customer. The new approach was a success – an 80% increase in open rate compared to the previous email campaigns.
This willingness to take risks and be at the forefront of progress culminated in the opening of their own Innovation Lab in 2015. Additionally, Sephora has developed their own app. Thanks to augmented reality customers can now virtually apply makeup products, mixing and matching with neither mess nor waste. With the use of artificial intelligence, the app also offers a virtual shopping assistant. It suggests the best products for the individual customer’s skin tone through the colour match feature. Moreover, the app helps customers find recommendations and reviews of their products.
Of course, the best digital transformation helps both the company and the customers. The app improves customer experience by providing valuable information and making the shopping experience smoother. At the same time, the data it gathers lets Sephora get a better insight into their customers’ shopping behaviour. This allows them to further tailor the shopping experience to the individual.
Though shoes and makeup are vastly different products, Nike’s digital transformation strategy also resulted in the development of a mobile app. People who install the app on their phones can use it to scan their feet. The app takes the data it gathers from the scan, analyses it, and maps both feet. Based on the result the app then recommends the shoe size that should fit the user the best.
This, of course, saves the customer a lot of time trying on shoes, as sizes vary between types of shoes. It also prevents people from choosing the wrong size, which might do genuine harm to their feet. But it gets even better. The app also gathers the data of the individual’s feet for future reference when Nike designs new shoes. All with the goal to provide better footwear for their customers.
Having found success with their digital transformation efforts, Nike intends to invest further into digitizing their business. The future involves no small amount of data and analytics. There are also plans for demand sensing technology, digital member services, and a new editorial content engine.
Toymaker Hasbro has enjoyed undisputed success in their niche. Despite this, they came to realize that they had gotten their marketing all wrong. It was a given that the toys had to be appealing to children. However, it is not children who do the shopping.
Changes had to be made, and changes suited for the digital age. Hasbro’s digital transformation strategy took the shape of analysing existing customer data. By taking a closer look at how the parents who bought their products shopped, they were able to tailor their marketing to appeal to their actual customers.
With reliable data to back up who their customer was and what they wanted, Hasbro increased their ad spending – with 1100%. They also focused on multiple channels to reach parents, from targeted ads on social media to an ad tech platform. The investment paid off. Sales increased with $1 billion, to a total of $5 billion, which made 2016 the most profitable year in Hasbro’s long history.
Just like Hasbro, Domino’s digital transformation strategy hinged on who their customer was. Domino’s customers are typically younger – millennials and gen Z. These generations are digital natives who want to be able to access information and services anywhere.
Domino’s platform, aptly named AnyWhere, is designed with a wide range of computing devices in mind. Desktop, mobile, smart TV, smartwatch? If you have internet access you are likely able to order a pizza. The app also lets customers track their pizza as it is made and delivered, allowing them to go about their life until it arrives. This easy access to their services has made Domino’s a much more appealing option in a highly competitive niche. Indeed, the company surpassed their goal of 50% of their orders being made digitally thanks to the AnyWhere app.
Understanding your customer also means more efficient marketing opportunities. Domino’s is aware that people often want a non-standard pizza and have embraced it with gusto. Thus, they encourage the public to come up with pizza recipes and share them on social media. This lets customers participate in the marketing of Domino’s, while also crowdsourcing the creation of new pizzas that people genuinely want.
Are you ready for digital transformation?
Does your company need a digital transformation? Regardless of what services you provide, your business can greatly improve with the right focus and strategy. You may need to outsource a lot of your digitalization, but the end result will be worth the investment.