Promotion Insights: ‘New Year, New You’... Digital Transformation in 2022
Jul 18, 2022
6 minutes to read
As we all get back to the grind after the festive season, teams are starting to execute on their 2022 strategies. But what are the potential pitfalls for even the most well-thought-out marketing plans? And what opportunities are there for teams with the flexibility and vision to get ahead of the curve?
We’ve put together a quick roundup of some key strategic inspiration, and an overview of some trends to watch over the coming twelve months.
Spotlight on… digital transformation
According to a McKinsey Global Institute report, digital adoption among consumers and businesses leapt forward five years in a matter of weeks in 2020, thanks to COVID-19. For companies that have been slow to put their wider digital transformation strategies into motion, the reality is that companies need to accelerate their timelines, or be left behind.
Over the past month, we’ve been highlighting different strands of the digital transformation mindset, each piece attempting to give a full picture of the state of play in 2022 — and how to future-proof your business strategy.
There are three mindsets firms can take when approaching the digital transformation topic, each ushering the company towards a particular framework:
Business model innovation: this mindset means looking at where digital tools can aid the development or disruption of business models. This tactic spans the strategy, innovation, and entrepreneurship fields of an organization. By looking where efficiencies can be found, new channels can be utilised or existing models disrupted.
Enterprise architecture innovation: Designing an intelligent information architecture that supports digitalization. By 2023, 65% of all enterprise architecture will focus on information architecture, making it central to all digitalization efforts.
Enterprise process improvement: The process by which all business activities are organized in a structured and highly integrated way, aligned with business goals.
For retailers in particular there’s one key resource: knowledge.
You need to understand that digital transformation is much more than installing a couple of apps and moving some basic ordering systems online. Also, it’s not just about hoping for the best or putting a band-aid on obsolescence concerns. It’s about building a mindset that is ruthlessly dedicated to efficiency and performance in every aspect — and how finding the right tools and processes facilitates that.
We’ve paid particular attention to how headless systems provide enterprise companies — those with the most to lose from the entry of challenger brands — with the flexibility to adapt to the changing business landscape.
By combining best in class features with unparalleled flexibility, companies get the tools they need to be set up for success. This unique value proposition is why we’ve tipped headless commerce to continue its growth in 2022.
The Reading List
The emergence of Blockchain technology has given rise to an entirely new asset class: cryptocurrencies. This has created a large and growing market for trading tokens and virtual goods. The most hot commodity in the art and collectibles world at the moment is the Non-Fungible Token (NFT), where non-fungible means every token is unique.
So-called ‘web3’ is offering a new arena for promotional and marketing strategies. With NFTs, blockchains, and smart contracts, brands have a whole host of new potential loyalty options and coupon possibilities.
Companies such as CryptoKitties, a blockchain-based game where players adopt and breed digital kitties, offers users the ability to trade their kitties on a marketplace. For brands that want to get in on the action, there are ways to leverage this technology to build hype around a product launch or event, such as using NFTs as tickets — or even offering special limited edition perks to loyal customers.
The Australian Open is offering limited edition Art Balls, which are linked to actual match balls used in the competition.
Check out our explainer on Web3 here.
Loyalty schemes are a hot topic in the quick-service food industry, with McDonald’s the latest to join in. McDonald’s started piloting their MyMcDonald’s Rewards program in 10 restaurants across the North of England on January 10, with a plan to start implementing it nationwide by the end of the year. We’ve previously broken down how the MyRewards scheme works. The expansion of the scheme to the UK is another vote of confidence for their loyalty scheme — the brand intends to leverage the loyalty program to grow its known customer base 8X, and has already seen a bump in customer frequency where the program is available.
Another loyalty success story is the US chain Jack in the Box. Jack in the Box is a fast-food restaurant chain founded in 1951, which operating more than 2,200 restaurants in 20 states.
The brand’s loyalty program offers rewards that can be redeemed in-store or on their mobile app. The app allows customers to earn points each time they use their Jack in the Box coupons or scan a QR code at order time. They can then redeem these points for discounts and free food items. Jack Pack Rewards allows customers to choose what items they want to receive with each redemption.
“We’re happy with where we are with loyalty and our downloads have significantly increased,” Ryan Ostrom, CMO of Jack In The Box said. “That should accelerate with our big push to roll it out in stores. Our goal is to create a one-to-one relationship with our guests and really change the way we engage with them.”
Read more about how high-value restaurant customers are attracted by deals, discounts & loyalty programs.
What they’re saying...
“Retail adoption is there and will continue to accelerate, but for those established Wall Street firms and other financial services companies that are not already involved in the crypto ecosystem, it is a matter of when not if,” Brian Brooks, chief executive officer of Bitfury Group Ltd. Read the full article.
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Content Lead at Talon.One
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