Why investing in digital is driving customer loyalty and creating long term value
For most companies, the strategic objective is clear – finding growth. However, getting the right strategy is not easy, especially in a market environment where customer loyalty is fluid and disruption can come from anywhere.
To succeed in the long run, companies need to plan their capital allocation strategically and balance near-term investments in their core business with the ability to meet customers’ needs and market demands, today and in the future. This will likely mean investing in digital technology to help transform and future-proof their businesses.
Pioneers understand this and continue investing in digital to accelerate their transformation and maintain their competitive edge. From vision to action, pioneers allocate funding to digital transformation to drive their strategy. More than 80% of pioneers say they are investing a quarter or more of their capital to their digital future. Explorers, while still investing in digital, are less likely to see it as central to their investment planning — less than one-third (29%) of explorers spend 25% or more on digital.
Moreover, pioneers prioritize their capital allocation to deliver a customer-centric business strategy. When we break the investment plans down to look at past, future and value creation intentions, we found the clear majority of pioneers have focused their past digital investment on improving the customer experience. Pioneers recognized customer-centricity, customer experience and customer loyalty were paramount.