Over 90% of organizations describe themselves as ‘somewhere on the journey’ to transformation, with only 17% of those surveyed currently delivering a new digital experience, leaving over 80% of companies with no plan or behind the digital curve, according to OgilvyRED’s Digital Transformation Survey.
“Digital adoption has passed the tipping point,” says Lucy McCabe, President, OgilvyRED Asia Pacific. “The time has come for digital to make an impact and revolutionize organizations and the ways in which they connect with their consumers. Yet, results show that the journey to true Digital Transformation is, in fact, a road less far travelled than we might think.”
What does Digital Transformation mean today?
The current challenge in marketing transformation is no longer purely about technology. Organizations need to embrace and leverage technology to create fresh business models and adopt new digital channels to meet the needs of its consumers.
“Challenges vary between sectors and markets, but the key is to identify the road blocks and bridge those gaps. Companies need to challenge traditional success metrics and deliver consumer experiences based on intimate algorithms that shape the experience around that consumer,” adds McCabe.
The increasing infusion of digital into marketing has already started to change certain industry sectors – some accelerating faster than others. Industry sectors such as IT, Telecoms and Travel & Tourism lead the way in digital transformation, according to the Survey, and even the FMCG sector is focusing more on marketing transformation as a way to build direct relationships with consumers at every stage of the marketing funnel.
86% of respondents had seen significant increases in digital marketing budgets over the last three years, and 55% also pointed to growing e-commerce as a priority, speaking to a broad buy-in and investment in digital transformation across the industry.
The Funnel of Love
The top four outcomes organizations seek from Marketing Transformation are customer-focused, which indicates that marketers are finding it increasingly challenging to drive efficiencies at the top of the funnel, both in traditional and digital channels. These are:
- Extending reach to new audiences
- Increasing relevance & engagement with consumers
- Transforming the way value to customers is delivered
- Increasing customer satisfaction
Perceptions on the Challenges of Digital Marketing Transformation
Respondents identified leadership as the key driver of success in an organization’s transformation process, whether that’s brought in internally or through an external agent to drive the process. But, the majority of marketers identified internal change management as the most significant barrier to success. Organizations need to integrate and departments need to work closely together to effectively deliver transformed customer experiences.
Additionally, many of the surveyed emphasized their struggle to find an integrated agency that demonstrates a depth of specialist expertise. Partnerships are becoming increasingly important in order to bridge these gaps.
“We are competing in a data-driven digital world,” says Jerry Smith, Chairman, OgilvyRED Asia Pacific. “Brands need to unblock internal barriers and seek a trusted partner with deep expertise to deliver tailored content and consumer experiences as individually relevant as possible. More organizations see this as a high priority on their Marketing Transformation agenda, but need to move faster on their path to transformation.”