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In the year Widespread adoption of home Internet connections in the 1990s led to the mainstreaming of online banking services. This happened 30 years ago. So why are credit companies today praising “digital transformation” and “digital-first” approaches as if they mean something?
A recent ad for a student loan company may have renewed my interest in these meaningless buzzwords, but it highlighted an important message I want to convey to all businesses that still use this buzzword.
The digital revolution has already happened.
There is no doubt that the world is in a period of digital transformation. What started as a gadget has evolved into apps that are now home to countless services and companies. Meanwhile, the powerful little computers we keep in our pockets are the driver of roughly 72% of online sales.
These significant events define the term “digital transformation”. And it’s the reason one lending company calls its online process a “digital-first strategy” that, frankly, doesn’t deserve to share labels with the most influential innovators the world has ever seen.
Businesses chasing buzzwords like “digital transformation” don’t need to go so far as to fire their marketing team or question their corporate values. But having said that, it’s time to shift their focus to something that truly reflects the meaning these companies want when they choose these terms.
Related: How entrepreneurs are investing in digital transformation in the new ‘normal’ era
Digital buzzwords fail to convey what really matters.
While we agree that digital transformation represents more than just any company project or strategy, some leaders still use slightly different terms like “digital procurement” to explain their process. While it may seem like a step in the right direction, it’s a perfect example of how many companies still fail to identify what’s worth paying attention to.
“Digital” is already here and here to stay – it is. Data Behind digital communications that are now more important than ever. Businesses must shift their focus to digital and instead look deeper, focusing on the collection, management and use of data that is helping the world’s largest companies compete at an unprecedented level.
When Amazon, known for pioneering fast delivery, started selling fresh produce and grocery items, many people thought Walmart had done it. Yet, Walmart has invested heavily in data Change, helping you better meet consumer needs.
Walmart has now overtaken Amazon to capture 20% of the online grocery market. That’s the power of data transformation.
Related: Amazon Versus Walmart is a blueprint for competitive advantage.
Shifting focus to data has business-wide implications.
As businesses move away from buzzwords like “digital-first” and start exploring ways in the field of data transformation, it’s not just a change in words. When businesses move to a data-first model, they open up a world of opportunities that can impact every part of the business.
Data transformation informed Walmart’s strategic decision-making, ultimately enabling the mega-company to compete and win against a company many times its size. But, in addition to using all that data behind the scenes, Walmart has used it to completely improve the customer experience.
Airbnb is another good example of using data to shape a customer’s perception of a company. The business competes with hotels and other booking sites around the clock, but it has managed to come out on top because of how it uses data to simplify the customer journey and add value to the booking experience.
Airbnb does this by instantly identifying and offering a discount when a user is hesitant to book a stay, or by reminding them that an area is almost fully booked for the month they want to travel. As a highly effective marketing strategy, these big data at work make Airbnb one of the most responsive and user-friendly apps of its kind.
But how can you open up your organization’s data internally and externally to draw? yours Edge?
Related: How businesses can save time and money with smart purchasing strategies.
Driving your point home
No matter how concise, clever or cute you try to be, the message of your commercials should always be clear to the recipient. That’s why you need to step on the toes of digital transformation and why you need to narrow down what you mean instead.
By getting away from the vague buzzwords that start with “digital” and learning more about what’s in your business related to data, you’ll find that fewer people roll their eyes when they read about your company. As a result, you can really resonate with your audience, build understanding and make them want to know what your business is trying to do.
