Digital maturity is the goal that brands aspire to, or should aspire to, and an essential tool to remain competitive and plan long-term growth.

The data demonstrates this: according to the App Direct Digital Economy Report, nearly 80% of companies embark on a digital transformation process, to varying degrees of awareness. Of these, 78% fail to reach their goal. However, statistics show that 43% of companies with high digital maturity achieve significantly higher net profits compared to the industry average.

If everyone tries but only a few succeed, and those who do succeed achieve significantly higher profits on average, then it’s worth considering.

Digital maturity is not just about having the latest technology in your marketing stack; it represents a holistic quality that encompasses the entire organization. It translates into integrating operations, people, and technology within your digital strategy and, through these elements, creating value.

On the other hand, consumers have become much more digitally mature compared to a couple of years ago, and their expectations are higher than ever. Automation, customer centricity, efficiency, flexibility, technology, and innovation are key.

For medium-sized enterprises, monitoring, becoming aware, and seizing the opportunities arising from their level of maturity are essential to thriving in an ever-evolving industry.

The benefits of achieving full digital maturity are manifold. It allows for greater awareness of digital assets and growth opportunities, which translates into the ability to invest strategically and optimize resources efficiently.

Data and customer information can be used more effectively with personalized campaigns and optimized budgets, leading to increased ROI and an improved user experience. Additionally, the business can innovate and scale efficiently through operational integration and automation, quickly adapting to new trends and seizing opportunities.

THE JOURNEY TO ACHIEVE DIGITAL MATURITY

By examining the framework proposed by the Boston Consulting Group (BCG), we can delve into the four phases to gain a more comprehensive understanding of the current stage

Nascent: In this phase, we find companies whose digital marketing activities are basic. There is minimal use of data, basic targeting, no use of automation, and manual optimization on individual campaigns. Third-party data is predominantly used.

Emerging: This phase is characterized by companies starting to integrate their first-party data into programmatic media buying activities. Initially, this integration is done manually, with optimization and testing performed on each channel individually. However, as data collection increases, the company begins to use automation more extensively, and the data itself becomes increasingly important for decision-making. In this phase, the company begins to engage in segmentation activities and processes data to test results and improve strategies.

Connected: In this phase, the company implements a digital strategy, integrating and utilizing both first-party and third-party data across multiple channels. This is achieved through the use of a wide range of formats and channels for advertising activities. The applied omnichannel strategy leads to increased ROI or sales proxies. In this phase, the company uses an advanced attribution model that allows for a better understanding of the impact each channel and format has on the customer’s purchase journey. Processes are also automated, reducing human errors and improving the efficiency of advertising campaigns.

Multi-Moment: This is the final phase of the process, where display advertising is entirely managed programmatically, characterized by full optimization to deliver personalized content for each target audience across different channels. Touchpoints in the customer journey are carefully studied and internalized, with a completely data-driven approach. Metrics are specific, and strategies are tailored to individual customers. The effort dedicated to these activities and the attainment of a deep understanding of the digital realm allowbrands to comprehend their customers, their expectations, and consequently their Lifetime Value (LTV).

But how do we determine the phase in which each organization finds itself? This depends on five factors:

From the current state to digital maturity: a practical guide for brands

In Italy, the majority of companies are still in the Nascent phase, while very few have reached the Multi-Moment phase. However, a medium-sized brand should not settle for this. On the contrary, it is ideal to strive for the Connected phase, which involves gaining in-depth knowledge of one’s assets and taking a long-term approach to business strategies. This implies, among other things, a strong connection between all media channels, which need to be integrated and coordinated. To achieve this goal, a conscious and forward-thinking approach is necessary.

We have practically applied this growth philosophy to a medium-sized fashion brand with which we have directly collaborated. We started by analyzing the business to identify the phase in which the brand was positioned, which we determined to be nascent. We then devised an action plan that moved along three essential paths to acquiring maturity and autonomy: media, creativity, and analytics.

Thanks to the activities undertaken, the brand has now reached the emerging phase, with advanced KPIs and an increasing importance of the data strategy, where first-party data is beginning to play a central role. However, our goal is to go even further, and reaching the connected phase is just around the corner.

It is not the amount of money spent but the effective utilization of available resources that determines success in reaching the Connected phase for companies. Collaborating with a partner while simultaneously internalizing activities and maintaining ownership of media spend and platforms is the right choice to gain significant market share and ensure transparency in ad spending and ownership of data. In this way, companies can fully leverage the opportunities offered by digitalization and position themselves effectively in the market.

Additionally, there is the technological aspect and platform ownership. If you’re curious, you’ll be eager to read the next blog post!