Companies across every industry are going through a digital transformation. This process allows them to incorporate new technologies, methods, and best practices into their business models to create new organizational opportunities. It can improve their supply chain, focus on logistics, improve delivery efficiencies, or individualize the consumer experience.
Every step, from research and development to the final sale, can see improvements thanks to the efforts of the digital industry. The global supply chain networks for all products, not just high-tech items, are growing more competitive and complex every day. Companies that were once the sole component suppliers for their networks are now developing independent products.
Truly competitive companies are now their own supply chains, OEMs, and distribution specialists. They are both partners and competitors to their traditional allies when approaching the customer. If these digital industry statistics are not taken seriously, the organizations that fail to implement new polices or regulations based on this information could find themselves out of business in the next few years because of the new efficiencies that are possible.
Important Digital Industry Statistics
#1. 85% of decision-makers at the enterprise level say that their time frame to implement a meaningful digital transformation for their organization and/or industry is 24 months. If they are unable to do so, then they will fall behind the competition and experience financial problems. (IDC)
#2. Two-thirds of global CEOs said that they have a focus on digital strategies in 2019 to improve customer experience. (Seagate)
#3. 44% of organizations say that they have already moved toward a digital-first approach when creating new customers’ experiences. (IDG)
#4. Online 1 out of 3 companies say that they have already gone through the necessary processes to implement a digital transformation of their own. (Smart Insights)
#5. About 3 out of every 4 customers say that they are more likely to buy something from an organization when that company knows their name, understands their purchase history, and recommends products to them based on their known preferences. (Accenture)
#6. One of the reasons why a digital transformation is necessary for organizations in every industry is because there are about 3 devices connected to the Internet of Things for every person on the planet. By 2020, there will be more than 20 billion devices exchanging information. (Vxchnge)
#7. Over 50% of customers today say that they expect a response from a customer service department in 60 minutes or less – even if their request is on the weekend. (Edelman Digital)
#8. 56% of C-Suite professionals say that making digital improvements to their organization led to some measure of revenue growth. (Gartner)
#9. Over 30% of the purchases that happened during the 2018 holiday shopping season were based on mobile devices. (TechCrunch)
#10. About 3 out of every 4 customers across every industry say that a company should understand their expectations and needs if they are going to provide a valuable product or service. (Salesforce)
#11. About 3 out of every 5 organizations say that they are providing a “good” mobile experience to their customers. Only 22% of customers would agree with that statement. (Qualtrics)
#12. Almost 70% of customer experience initiatives are expected to use an IT department by 2022, which would be a 50% increase from those encounters in 2017. Over 40% of all data analytics projects that organizations initiate involve the customer experience today. (Gartner)
#13. 1 out of every 4 customer service operations is using virtual customer assistants to initiate contact, such as a chatbot. That rate was only 2% in 2017. (Gartner)
#14. 80% of customers say that they will look up prices, reviews, and product information on their smartphones before or during their shopping experience at a real store. 79% say that they even made a purchase using a mobile device in the past six months. (Outer Box Design)
#15. Over $35 billion in spending on artificial intelligence happened in 2019, which was a 44% increase from the year before. (IDC)
#16. 1 in 3 companies say that their plans involve a full adoption of a digital transformation in the next year. (Seagate)
#17. 3 out of 4 customers will use more than one channel to meet their needs when they begin their shopping journey with a business or brand. (HBR)
#18. Over 60% of customers in the United States say that they prefer trying to solve a service-related problem by themselves instead of dealing with a contact person. That preference has led to an increase in the number of self-service pages, apps, and other DIY options. (American Express)
#19. 2 out of 5 consumers who need to contact a company’s customer service department for complex issues say that they prefer to speak with a representative to manage their trouble ticket. (American Express)
#20. 90% of customers say that a company should have an online portal that can manage their troubleshooting needs. Two out of three consumers report needing to use 3+ communications channels when trying to reach the appropriate department that can solve their problems. (Microsoft)
#21. Over 40% of Millennials prefer to contact a customer service department through the use of a mobile device. (Microsoft)
#22. 1 out of every 3 customers who decided to end their relationship with an organization in the past 12 months said that their primary reason for doing so was a lack of personalization with their interactions. (Accenture)
#23. Email is the most common customer service channel in use today, with almost 55% of consumers choosing to use this method of contact in 2018 when there was a product or service concern that they needed to address. (Forrester)
#24. Companies must embrace consumers who use multiple channels when shopping instead of taking the single-channel approach. These customers spend 10% more online and 4% more in stores when using more than one approach. Each additional channel that customers use will add more revenues to the relationship. (HBR)
#25. Over 80% of customer-centric companies say that they are making the mobile customer experience one of their top priorities. (Vision Critical)
#26. 90% of customers today say that they want multiple channels available while still having seamless service options that can take them through the various available communication methods. (UC Today)
#27. Approximately 70% of consumers say that an organization should know their purchase history in every communication circumstance, whether the contact happens by email, phone, or chat. (NICE)
#28. Over 60% of Millennials decide to begin their customer service journey with an online interaction of some type. (Microsoft)
#29. Almost 60% of customers say that they will not recommend a company to their family or friends if the website does not offer a responsive experience for mobile users. 53% will abandon mobile sites if the content takes over 3 seconds to load on their device. (Google)
#30. Over 40% of the time that consumers spend online is through the use of a mobile device. (Stone Temple)
#31. 65% of people say that they use online methods of research to look at the quality of products, compare prices, and discover the history of a company before deciding to make an online purchase or step into a store to complete a transaction. (Retail Dive)
#32. Over 70% of customers today say that they want to receive a consistent experience across every channel. Only 30% of people actually get to have this experience. (Gladly)
#33. About 3 in 5 customers say that they are satisfied with the services they receive from a chatbot. The one qualification with this specific digital industry statistic is that there must be an option available to move that conversation to a real person if it becomes necessary. (Forrester)
#34. Over 30% of organizations today have invested in artificial intelligence as a way for them to get an edge against their competitors. (Accenture)
#35. By the year 2021, up to 15% of a company’s customer service interactions could be managed by artificial intelligence. If that figure is achieved, then that would represent a 400% increase from what consumers experienced in 2017. (Gartner)
#36. 24% of companies today are still not making investments in emerging technologies, betting that the traditional approach is going to offer more value to their customers than anything that the digital industry could provide. (Accenture)
#37. Over 50% of Americans said that they stopped a purchase that they planned to complete because they had a poor customer service encounter. About 1 in 3 said that they consider switching to a different service provider after they receive only one poor encounter with a company. (American Express)
#38. The average American customer will tell 15 people about a poor customer service experience that they recently received. If that person has an excellent encounter with a company that leads to a positive result, then they will only tell 11 people. (American Express)
#39. Organizations in the United States lose over $62 billion each year because of their poor approach to customer service. 51% of customers say that they will never do business with that company again after a negative experience. (New Voice Media)
#40. Over 70% of customers say that they will switch to a different brand or organization if their purchasing process is too difficult. (Salesforce)
#41. 70% of American consumers say that they will spend more money to do business with an organization that consistently provides excellent customer service. Millennials spend the most to ensure that their experience is positive, with a willingness to add over 20% to their final transaction. (American Express)
#42. When an organization can increase its customer retention rate by 5%, then this action can result in a profit increase of up to 95%. (Bain and Company)
#43. It is up to 25 times more expensive to acquire new customers than it is to keep current ones in the current digital world. (HBR)
#44. For a company earning $1 billion in annual revenues, a moderate increase in customer experience can generate an additional $823 million for the company over a 36-month period. (Temkin Group)
#45. 2 out of 3 adult consumers say that the most important thing that an organization can provide when offering an excellent online customer experience is an accurate valuation of their time. (Forrester)
#46. 64% of people say that the customer service experience that a company provides is more important than the price of their product. (Gartner)
#47. 38% of people who receive a thank you note after a brand interaction are more likely to return as a customer or donor again compared to those who do not receive a written acknowledgment of their efforts. (Likeable Local)
#48. 75% of customers today say that it takes too long for them to reach a human who can help them to manage their problem. (Harris Interactive)
#49. 69% of adults who regularly shop online are more likely to work with retailers who offer consistent digital and offline customer service options for them to access when necessary. (Forrester)
#50. 68% of consumers say that a pleasant representative is the key to their recent positive customer service experience. That attribute ranked higher than the 62% of people who said that the knowledge of their CSR or their resourcefulness with the most important part of their recent interactions.
#51. The average wait time for a customer service response on social media is 9 hours. (Customer Experience Outlook)
#52. American consumers are more likely to post good experiences with a company on social media (53%) compared to the poor experiences that they have (35%). (American Express)
#53. 35% of companies report that they reached out to customers on social channels in 2017. That figure is up from 17% in 2012 and 23% in 2014. When using social media as a way to be proactive about their customer service needs, 84% say that a resolution or response occurred. (American Express)
Digital Industry Trends and Analysis
Digital transformation spending is expected to increase by over $6 trillion worldwide through 2021. The direct impacts from these investments will be seen by IT professionals are their Chief Information Officers more than anyone else at the local level. If this money is going to be a positive influence, then the rest of the C-Suite must buy into the process.
The next five years will be critical for organizations of every size as the digital industry continues its expansion. Blockchains will enable prominent internal value chains to extend their digital platforms to create a multichannel ecosystem experience. The organizations that can pull this expansion effort off well could reduce their transaction costs by up to 35%.
At the same time, look for the largest companies in the world today to allocate investments that equal about 10% of gross revenues to add fuel to their digital strategy – or to start one.
By 2023, over 95% of the companies in the world will have incorporated new KPI sets that focus on data capitalization, service innovation, and product development. These efforts will improve the customer experience as people work their way through the digital industry, which will then improve the employee experience as well.
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