Mid-tier firms target digital growth to boost customer experience
In a survey of 1,200 UK mid-market companies by YouGov and KPMG Enterprise, 72% classed digital as an important priority generally and 68% of respondents said they planned to increase spending on digital over the next two years.
Respondents pinpointed “transforming the customer experience” as the number one priority for digital. Mid-tier companies can exploit advances in data and analytics to better understand their customers’ needs, and then service those needs more effectively using well-designed, fully integrated digital channels, the report stresses.
It also shows that some sectors are significantly more committed to digital than others. The top performers are the IT & telecommunications sector, media organisations, and finance and accounting companies.
“We have set up a new website and are aligning our business strategy to digital, ensuring our editorial and advertising content correlate online,” Catalina Cotoara, Finance Director of Simply Media, owners of the Reader’s Digest, tells Engage Customer. “Our goal for the coming financial year is to double online viewers from 510,000 per month in March 2015 to over one million per month by March 2016.”
However, only 14% of respondents describe themselves as digital pioneers who “strive to stay at the cutting edge”, while 32% said they would prefer to wait and see if a new technology was proven to work before investing.
“Those who are adopting the ‘wait and see’ approach are playing a risky game,” says Nathan Beaver, customer & growth director at KPMG Enterprise. “While there is nothing inherently wrong in waiting for technology to be proven, there is a danger that such an approach could give rise to a ‘two-tier digital economy’ where some mid-tier organisations end up falling behind and being overtaken by those more innovative businesses.”