As the pandemic puts greater pressure on technology budgets, IT leaders are taking a number of actions to boost their long-term value from digital transformation investments. However, while the process of measuring ROI may be relatively simpler, knowing how to grow it poses an altogether different challenge. In this blog, we’ll explore some ways to boost your ROI from digital transformation. Below are some strategies to get you started:
It is very important to measure ROI. Quantifiable data helps in measuring ROI where various types of investments happen, through which the organization gets ROI. Are we capturing those data points? As we go through them, it should give us the following:
- How was the trend?
- Any noticeable patterns?
- How was the conversion rate?
- Did the primary conversion pages perform well?
- Was my content consumed?
- Did we have proper user engagement?
Once we have the answers to the above questions, we can set the direction to move forward.
Acquire the right customers
The right customers will always outperform. The answers to the questions below will lead organizations in the right direction to find a potential opportunity for implementing various measurement strategies to measure ROI:
- How many customers did we acquire?
- What % of acquired users made purchases or converted?
- Do we have enough profitability or conversion rate?
- Is the conversion rate higher from new users or repeat users?
- What about the customer churn rate?
- What is customer lifetime value?
Once we have the answers to these, it will help us in targeting the right audience.
Having the right attribution in place always helps organizations see the data more efficiently. It enables marketers to test a combination of marketing options to have the right digital transformation in place with which more conversions are possible. This helps in measuring the ROI of digital transformation. When you have the answers to the below questions, consider your attribution model is at the right place.
- Do you have a clear view of the purchase journey?
- Do you know which campaign contributes to more traffic and conversion?
- Were you able to connect dots between the user journey before and after conversion?
- Were you able to do the purchase attribution across various touchpoints? (Do you have a multi-touch attribution model in place and does it also support offline channel tracking?)
It is a known proven fact that the revenue generators are primarily the existing users. They help organizations in maximizing ROI, provided organizations have the right marketing and digital strategy in place to do an upsell or a cross-sell. So, having the right customer retention strategy in place plays a key role here. Do you know how?
- Show the user a value-add personalized customer service by a nurturing program.
- Set the right expectations by empowering users.
- Re-engage users by targeting them at the right time.
- Trust your KPIs which reveals every critical data point.
- Have a dynamic customer experience in place.
- Learn from customer feedback.
Test your assumptions
When targeting people, it is worth targeting mid-level purchase funnel users as those are the potential ones who eventually get converted. Digital strategies measurement of ROI plays a key role in digital transformation. To make it more user friendly, below are some of the key focus areas to look into:
- Have A/B testing in place to test your assumptions.
- Have the personalized content/products which are more relevant to the user journey where users can co-relate themselves.
- Use the right algorithms to upsell and cross-sell, which increases the revenue by which you will be able to calculate the increase in ROI.
A typical user journey can start anywhere. Some of them are from email campaigns, others from social channels, organic or sometimes even direct. Not every user will convert in his/her first visit to the site. We need to categorize the overall user journey into 3 buckets, High-, Mid-, and Low-level user journey funnel. It is very natural that the high-level funnel has a high volume of users, but it is very important to understand the user journey of mid-level funnel users as there is a potential opportunity that those users potentially get converted.
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Here is where we can leverage various tools to engage the users more. Use retargeting, email nurturing programs, and personalized content or products to increase engagement. The more the users are engaged, the higher the chances of conversion and it’s a proven method to increase ROI.
Should we stop here? The answer is no, we still can learn from various data points and can continue to nurture, personalize, and retain customers by which we will be able to get more revenue/conversions.
At the end of the day, it’s more of a learning and a cycle of evolution where data as a platform and ROI is a goal. High ROI always indicates success.
Analytics helps organizations build a roadmap to various business units and paves the path to the following:
- Optimize operations reporting
- Performance analytics by integrating data sources
- Data governance to standardize terms
- Business users in accessing information
- Answering mysterious questions
- Gaining new insights
- Improvement in processes
- Evolve better
- Finally increases ROI
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TA Digital is the only global boutique agency that delivers the “best of both worlds” to clients seeking to achieve organizational success through digital transformation. Unlike smaller, regional agencies that lack the ability to scale or large organizations that succumb to a quantity-over-quality approach, we offer resource diversity while also providing meticulous attention to the details that enable strategic success.
Over the past 20 years, TA Digital has positioned clients to achieve digital maturity by focusing on data, customer-centricity, and exponential return on investment; by melding exceptional user experience and data-driven methodologies with artificial intelligence and machine learning, we enable digital transformations that intelligently build upon the strategies we set into motion. We are known as a global leader that assists marketing and technology executives in understanding the digital ecosystem while identifying cultural and operational gaps within their business – ultimately ushering organizations toward a more mature model and profitable digital landscape.
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