Digitization is disrupting every business—banking, financial services, retail, insurance, and manufacturing. Digital transformation is a continuous process, and many companies are pursuing large-scale change efforts to capture the benefits of these trends. Yet, success is proving to be elusive. In this article at Forbes, Louis Columbus shares key metrics that you must consider for the digitally transforming revenue channels and growth.
New Metrics You Must Consider
Customer and User Experience
As you begin with your digital transformation journey, you must focus on the customer and user experience. Using net promoter and customer satisfaction scores, you can measure if your transformation to a customer-focused, digitally-driven organization is successful. Net promoter scores will also help you quantify your clients’ intangible feelings about your company, products, and services that you offer.
Customer Retention Rate
“A vitally important metric for any business digitally transforming their business model away from transactions and subscriptions, customer retention is one of the most closely watch metrics by CEOs today,” explains Columbus. Measuring customer retention rate helps you understand how marketing, promotions, offers, and new services influence customer loyalty.
Customer Lifetime Value
This metric predicts the future of cash flows based on recurring purchases. It also helps you understand how the most and the least profitable customer groups are evolving. Furthermore, this metric will help you avoid losing a long-standing customer.
Annual Recurring Revenue (ARR)
McKinsey’s study found that CEOs that provide the necessary support for teams to reach ARR goals often succeed. This is because they take risks to change the company’s business models and operations to get there. CEOs also put in enough effort to re-engineer their companies’ financial structure and transition to digital-driven revenue.
Digital transformation is a significant culture change. A lack of urgency is one of the most significant obstacles businesses face when considering implementing the digital transformation process. Therefore, proper planning is crucial. Additionally, you can achieve success only if you execute digital transformation per the KPIs you select. To read the original article, click on https://www.forbes.com/sites/louiscolumbus/2021/01/31/10-metrics-for-digitally-transforming-revenue-channels-and-growth/?sh=7f2ebe022524.