With the health crisis caused by the COVID-19 pandemic, the digital transformation dynamic of many companies has been turned upside down. Despite several steps taken in this transition, it could not be concretely realized, and companies had to review their roadmap from an efficiency perspective while keeping the initial course. It is in this context that Keyrus Management, a player in the field of consulting and digital support for companies, has conducted a study with a hundred or so companies on the challenges and keys to overcoming the crisis specific to marketing and sales departments.

Rethinking and accelerating digital transformation: the challenge for companies after the health crisis

In 2018, 59% of French companies considered digital transformation to be their priority for the past 2 years and almost all of them (97%) believe that the pandemic has precipitated the digital transformation of their company.

Benefiting from a significant competitive advantage, the most mature companies in this transformation have been able, like the pure players in the web, to deploy marketing personalization strategies supported by “data driven” solutions, in support of
omnichannel sales paths. They were thus able to win over new customers without difficulty, particularly during the initial period of containment.

However, many companies found that although they had taken the first steps in their transformation, and thought they had a solid foundation, this was not enough to face the crisis with the expected level of performance. There are several reasons for this: a hyper-centralisation of marketing expertise, an increased dependence on external service providers, a failing operational model and a digital transformation initiated by an anarchic proliferation of initiatives.

The first few months of the crisis have highlighted the failings of the operational model. For 82% of companies, the action to be taken in the short term following the crisis would be to focus on management rules, methods and organisations. 73% of the managers believe that a reflection on reinternalisation or relocation should be carried out in order to be more autonomous.

Several areas of progress were targeted by the companies:

• For 71%, management of the order to delivery process (e-commerce, ship from store, drive, etc.).
• For 70%, visibility on commitments (product availability, delivery time, etc.).
• For 65%, clearer distribution of roles and responsibilities.

Keyrus adds:

“A large part of the transformation actions made a priority with the health crisis can be implemented in a “quick wins” approach. Indeed, these actions are not intended to structurally challenge the principles of organization, nor the core business information systems. On the other hand, they can only bear fruit if a common digital culture is put in place and a shared belief in its implementation within all the company’s businesses. The transformation trajectory will vary depending on the initial level of maturity of each business sector.”

Groups’ priority: improving the customer experience

For a large number of firms (95% of respondents), redesigning the customer journey experience (omnichannel) is a top priority. As indicated in the study, containment has accelerated the implementation or emergence of new customer journeys. This is a reflection of the fact that consumers and professionals were unable to make normal or even full use of the physical channels that currently account for 85% of retail sales worldwide.

73% of the companies surveyed believe that they should internalize key competencies to drive this transformation. 59% of them confirmed the importance of reviewing their internal organization and processes as a priority to the development of new tools. The rapprochement between the marketing and sales entities is perceived as a major success lever.

Large groups are looking to exploit “retailtainment”, a trend that relies on the use of entertainment to increase consumer interest in a product, for example, by offering activities in addition to the act of purchasing itself. Several examples are mentioned:

• Nike reportedly increased its online sales by 30% in China during the lockdown.
• 1.1 million new customers gained via the Drive, 38% of which then went to the store, i.e. an 8.8% increase in overall sales over the period March-August 2020.
• Following in the footsteps of Alibaba, Tommy Hilfiger, for example, offered its customers the opportunity to buy the pieces they saw on the catwalk directly from their smartphones.

To overcome constraints and barriers, physical distribution networks have “invited themselves into the home”. Brands have sought to create a memorable shopping experience beyond the boundaries of the store. This can be seen with the example of Tommy Hilfiger where people can instantly buy a garment by watching a fashion show online.

Keyrus specifies that the automation and robotization of administrative tasks in the online purchasing process should make it easier for remote advisors to provide value-added services. Moreover, the development of AI around the use of chatbots and voice assistants would make it possible to personalise and make the dialogue with customers more interactive according to their personality, attitude and mood.

Translated from Comment les entreprises ont géré leur transformation numérique pendant la crise sanitaire ?