Here are some major drawbacks and costs that businesses can face by not digitally transforming:
1. Lost opportunities for revenue growth as customers migrate to digital channels that the business cannot effectively tap into. This leaves money on the table.
2. Erosion of competitive advantage compared to digitally native competitors who can operate more efficiently, innovatively and offer better customer experiences.
3. Negative brand perception and lack of awareness if the business lacks online presence and engagement across websites, social media, etc. Appears outdated.
4. Higher marketing and customer acquisition costs without access to digital tactics like SEO, social ads, email marketing that provide more affordable and targeted options.
5. Smaller talent pool to recruit from as top candidates especially millennials expect strong technology enablement and mobility. Risk of losing best talent.
6. Declining customer retention as today's consumers gravitate towards brands that digitally engage them and meet their expectations for experience.
7. Blind spots operationally without digital data and analytics providing customer and performance insights to optimize decision making.
8. Poor employee engagement and productivity as staff gets frustrated using outdated tools and systems. Hard to attract digital natives.
In summary, not digitizing incurs major recurring costs across growth, operations, branding, and talent. The price of inaction keeps rising.
1. Lost opportunities for revenue growth as customers migrate to digital channels that the business cannot effectively tap into. This leaves money on the table.
2. Erosion of competitive advantage compared to digitally native competitors who can operate more efficiently, innovatively and offer better customer experiences.
3. Negative brand perception and lack of awareness if the business lacks online presence and engagement across websites, social media, etc. Appears outdated.
4. Higher marketing and customer acquisition costs without access to digital tactics like SEO, social ads, email marketing that provide more affordable and targeted options.
5. Smaller talent pool to recruit from as top candidates especially millennials expect strong technology enablement and mobility. Risk of losing best talent.
6. Declining customer retention as today's consumers gravitate towards brands that digitally engage them and meet their expectations for experience.
7. Blind spots operationally without digital data and analytics providing customer and performance insights to optimize decision making.
8. Poor employee engagement and productivity as staff gets frustrated using outdated tools and systems. Hard to attract digital natives.
In summary, not digitizing incurs major recurring costs across growth, operations, branding, and talent. The price of inaction keeps rising.
