The term "digital transformation" has been around for a while, but it’s still not clear what it means to most people. According to Google Trends, it continues to be a popular search term, as businesses are still trying to figure out what it involves and how they can achieve it.

What is digital transformation?

The simplest way to describe digital transformation is to say that it’s the process of changing an organization’s workflow from analog to digital. This often means relying on much greater collaboration and automation through cloud computing. While many companies are starting to move their systems into the cloud, there are still plenty of organizations that have not yet made the transition.

This can be due to various reasons:

They do not have the appropriate technical knowledge.
They lack resources to invest in new technologies.
They are unable to assess the advantages.
They fear a disruption to their current way of doing things.

Why is digital transformation necessary for consumer brands?

Consumer Brands all face the same challenges: How do they make their brands more relevant to consumers and their products more accessible? The answer lies in digital transformation.

Many brands continue to rely on their brick-and-mortar stores as their primary means of marketing. While that won’t disappear soon, the opportunities for growth are increasingly going to be away from traditional retail stores.

And according to a recent study by Accenture and Forbes Insights, only 31 percent of CPG companies are successful at digital transformation – and only 19 percent have plans for it.

How do consumer brands use digital transformation to sell their products?

For many brands, digital transformation is the process of developing an online selling presence and using data-driven technologies to identify and engage consumers. There are a variety of paths to digital transformation for marketing purposes, but we see four as being key at this time:

Amazon storefront
Search engine optimization (SEO) and search engine marketing (SEM)
Direct online sales through a branded website
Digital marketing via social media, digital advertising, direct marketing

Begin your brand’s digital transformation in marketing.

Here is a simplified way to think about the process:

Start with your customers. Who are they? What do they want? How do their desires align with what your brand can offer them?
Next, think about what kind of data you have access to and how it can help inform your decisions around digital transformation. You may need to add more comprehensive data through new software solutions and database platforms to build out your target audience profiles.
Then identify a variety of media and content distribution options that seem most promising, such as digital advertising, search, email marketing, podcast sponsorships, video marketing, social media, OTT television, etc. Test various options and continue to refine based on key metrics such as response, engagement, and sales.

Future trends in digital transformation in marketing.

The tools of marketing are advancing rapidly with access to deep data that can be organized, segmented and personalized through powerful computing. CPG companies are under pressure to remain relevant in today’s digital transformation or risk being left further behind as these technologies become more refined and accessible.

Here are some of the more prominent digital transformation trends in CPG:

Customer Experience (CX) Optimization

Using data analytics to give customers exactly what they want and need when they need it. It also helps companies track their success across channels to ensure their efforts are paying off.

Data-Driven Marketing

Data-driven marketing is the future of advertising for CPG brands because it allows companies to understand their customers better than ever before and reach the right people at the right time with the right message.

Augmented Reality

Augmented reality (AR) and virtual reality (VR) are becoming more common among consumer goods companies – and for a good reason. These technologies allow users to interact with products before purchasing them and see how they fit into their lives. This is especially helpful when shopping online, since there’s no way to try on an item before buying.

Artificial Intelligence

Artificial intelligence (AI) is increasing in popularity and effectiveness – and that’s a good thing for businesses looking to grow their customer base. AI can help brands target their ads more effectively by analyzing data about their customers’ preferences, demographics, and other information available online. In addition, AI can analyze purchase patterns so that brands can predict what people want before they even realize it themselves!

Partner with us.

Thomas|Ferrous is a marketing agency trusted by some of the largest brands in their markets. We have the talent and experience to help brands improve the effectiveness of their marketing through digital transformation. Contact us and let’s talk about where your brand is and where you can take it..

Digital Transformation in Marketing