The impact of digital on the turnover of ETIs
It’s no longer a secret that digitalization is an essential lever for growth . According to the study published by the CSA Institute for EY and APAX, in collaboration with METI in February 2019, 89% of Mid-Size Companies believe in digital transformation to maintain their growth and open up to new markets. Even if many of them admit to being behind on the subject, all are aware of the importance of digital technology.
The territories to invest
Improving the customer experience, data collection and analysis are becoming areas of concern , both in BtoB and BtoC. A veritable gold mine for ETIs, this data is very often neglected, due to a lack of knowledge, resources or the reliability of the information. As a result, 64% of medium-sized companies have a unified customer database, but do not put any analytical approach in place to exploit this data.
The impact on turnover
Customer experience tops the investment projects cited by ETI executives, ahead of data collection and cybersecurity. For a long time now, the message on the importance of managing the mysterious “Big data”, hammered home by digital experts, has led some of these business leaders (89%) to integrate into their overall strategy tools allowing them to a close relationship with their customers.
A multitude of tools are now available to digitize internal processes, strengthen digital culture, communicate, manage customer relations, develop digital marketing strategies, collect and analyze data, set up viable cybersecurity, innovate… It is becoming clear that digital has interfered in all sectors of the company (to streamline, save, perform, etc.) and that not to engage in its digital transformation is to take the risk of being overtaken by the competition. Taking this decisive turning point, Succeeding in your digital transformation means giving yourself the means to accelerate or relaunch the growth of your turnover. Because generating turnover and being profitable, isn’t that what every entrepreneur wants?
A transformation necessary to survive
The study by the CSA institute highlights the fact that you have to think differently about your offer, this is the case, among others, of La Redoute. Taken in hand by Nathalie Balla and Eric Courteille, the economic model based on a paper catalog, sent to the homes of its thousands of customers, made a spectacular shift, at the right time: When sales began to fall, the brand has redesigned its mail-order logic and fully focused on its online store, application, sales channel and customer experience. Detaching itself completely from its aging image and being part of the broader strategy of the Galeries Lafayette group with La Redoute Interior marks the change and plumps up sales by becoming phygital (opening of an AM.PM showroom specializing in interior decoration and textile sales entirely digitized).
It is a question of developing the economic model, of structuring it by identifying new sources of income and new customer interaction channels to be used.
The concept of digital transformation is none other than the flattening of pre-existing models, redesigned and restructured to lead to new viable models in the digital age. The turnover of ETIs will now depend on this successful transition.