With the innovative development of digital technology, digital transformation has now become an essential choice for companies. Many companies are taking digital transformation seriously to quickly respond to the rapidly changing market and innovate the customer experience.
As digital transformation is being considered, companies are requiring new approaches to enterprise management, customer management, business models and operating processes that are different from existing methods.
Many companies are pursuing digital transformation, but the percentage of companies achieving the expected results through digital transformation is lower than expected. According to a McKinsey survey , even digital-based industries such as Technology, Media, Telecommunications do not have a success rate above 26%, while in traditional industries such as automobiles, pharmaceuticals, the The success rate is only 4-11%. In other words, 70% of companies that attempt digital transformation fail.
Additionally, Bain & Company, a global management consulting firm, conducted a survey of more than 1,000 companies worldwide and found that only 5% of companies achieved their sales results and plans through transformation. digital.
The biggest reason most companies fail to achieve their digital transformation and achieve their goals is the difficulty in quickly ensuring new technologies are in line with market changes as well as the cost, time and manpower required when new functions are needed after the platform is built. about management, that is, about resources.
What methods have companies chosen to solve this problem?
In today’s technological environment, companies have chosen the direct construction method to realize this. Through consulting, companies define the core building scope for the solutions they need and choose the design on which to build the foundation. Then, through the project, you will proceed with personal formation according to your own situation.
Depending on the scale of the project, it takes 12 months or more to build a platform that includes a big data environment and then operations/management is done through a ‘Big Data Team’ or ‘New Business Group’.
In the case of building one’s own platform, it takes a long time from preparation to completion of the actual platform, therefore, there are cases where the company cannot keep up with the market environment that changes faster than it can. company innovation. Additionally, once the foundation is built, when a previously unimaginable system becomes necessary, additional resources are needed to accommodate it.
As a result, we were not able to respond quickly in the market, were pushed out by competitors, and in some cases we achieved unsatisfactory revenue or results compared to the resources we poured into it. Implement digital transformation.
Introducing a SaaS platform could be a solution.
Over the past few years, many companies have chosen to adopt SaaS services instead of purchasing or developing software to achieve digital transformation. We were able to confirm through a wealth of data that SaaS can be introduced and adopted quickly at a lower cost than a direct build approach.
The introduction of SaaS-style solutions is seen as a rapidly growing business and a realization of digital transformation. The biggest advantage of introducing SaaS is that the initial investment cost is lower than building the platform yourself and being able to do business flexibly in accordance with rapidly changing technology trends.
In the case of SaaS, it can be introduced immediately after the consultation without the need to build a separate infrastructure, allowing you to use most of the functions needed for real work. This results in low resource investment costs such as construction time, costs and operating personnel. Introducing SaaS allows you to quickly set up your technical environment, deliver innovative customer experiences ahead of your competitors, and gain a competitive advantage in the market.
So what is a SaaS-based customer data platform (CDP)?
First, let’s learn about Customer Data Platforms (CDP).
A Customer Data Platform (CDP) is a solution that integrates all customer data to deliver the right engagement at the right time and personalize all touchpoints from marketing/operations/service service. Through the use of CDP, companies can perform 360-degree analysis by viewing distributed customer data received via Web, App, DM, TM, offline etc. on a per-customer basis .
360-degree customer analytics helps you deliver personalized experiences to your customers and run optimized campaigns when they’re most likely to convert.
For example, you can create checkout pages A and B and use the data to test whether customers clicking on checkout page B increases or decreases purchase conversion rates and what impact it has on KPIs company’s core.
A SaaS-based customer data platform is a solution that reduces planning and build time and costs, collects and filters data right after onboarding, and instantly creates an environment that can be used by connecting analytics and marketing activities.
SaaS-based CDPs like DFINERY provide 360-degree customer analytics through their own solutions, and through Korea’s largest MI DMP, you can discover deep customer insights that cannot be confirmed using only the data you have. Based on this, the marketing team will finally be able to profile customers in a three-dimensional way, and can directly create and share customer and service analysis reports by accessing data without Need help from technical team.
By introducing a SaaS-based customer data platform, companies can easily link and use it with their existing CRM and TM solutions. Since it doesn’t require complex technical knowledge or costs, you can focus only on your core tasks during onboarding.
Unlike the direct deployment method that requires a lot of resources to update or maintain new features once created, introducing a SaaS-based CDP reduces the resource burden because the vendor provides support. Supports automatic upgrades and integrated management. This can significantly reduce risk, time and costs from a business operations perspective.
Advantages of a SaaS-based customer data platform (CDP).
The introduction of SaaS helps accelerate and realize a company’s digital transformation by quickly generating data-driven innovation outcomes. So what are the practical benefits of using a SaaS-based customer data platform (CDP)? Let’s take a look at some of the benefits of adopting SaaS.
- Cost structure: SaaS leverages economies of scale for vendors to deliver better software environments and experiences at lower costs. By significantly reducing the time and resources spent on IT-related business and operations support, companies can focus resources on core tasks, such as revenue generation or service development. new service.
- Growth opportunities: Regardless of size, you can grow your business faster and bigger by minimizing barriers like cost structures, complex technical issues, and poor and well-designed interfaces. providing tremendous growth opportunities.
- Flexibility: Users can access anytime, anywhere, on any device. Accordingly, companies can provide conditions to operate anywhere in the world, and users can use the solution regardless of their location.
- Scalability: SaaS can quickly respond to users’ constantly changing business needs. Delivers lasting improvements because your experience is automatically updated. Therefore, you can use solutions flexibly to respond to changing environments.
To evolve your business with rapidly changing markets, faster and more certain technological changes are needed than ever before. Today, digital transformation for companies has become more of a necessity than a matter of choice.
To realize digital transformation, companies must provide an environment where employees can actually use the platform in a digital workplace environment.
Introducing a SaaS-based CDP reduces the burden of self-build and quickly creates a digital environment. It can be a solution to problems related to financial costs, time and activities of professional personnel. Above all, it serves as a platform to increase customer lifetime value, innovate customer experiences, and increase sales.
It is expected that data-based digital transformation will continue to be the top goal of all companies. You can quickly realize digital transformation simply by innovatively increasing data access to the organizations that need it most within your company. Introducing a SaaS-based CDP can help companies achieve these goals in a tangible way.
In the next episode, we will discuss the similarities and differences between the introduction of ERP and current digital transformation, and how to go about digital transformation.