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Digital technologies are reshaping both consumer demand and competitive dynamics. It is altering how people shop and how they decide what to buy. Similarly, it has created entirely new patterns of expectation.
Today, selling to consumers is going beyond brand management, advertising and promotions, and store display. Lifestyles are digital. Traditional touch points are decreasing and new ways of engaging are emerging. Businesses must today turn to digital channels to connect and interact with consumers and drive loyalty.
Just think about the last time you went on a holiday or business trip. You probably used a bunch of apps to make the trip more effective and smooth.
Now, it is interesting to see how companies are embracing the digital future. For example, take an example of Indusind Bank. It is one of the first banks to start video branch facility. Through this facility, bank customers to connect with Branch Manager, relationship Manager, and bank executive. Similarly, the bank has started fingerprint banking where customers can do end-to-end banking transactions on its Mobile Banking app by using just their fingerprint. IndusInd Bank is the first bank in the country to launch this service. These innovations help to improve customer's banking experience.
Let's look at another example. Earlier, if you wanted a consumer durables loan, the retailer would ask for a set of documents, start processing the loan and send the product. Now, the retailer only requires a cancelled cheque and the approval comes on mobile instantly after filling an application. However, Bajaj Finance took this a step further with the launch of Experia, the country's first EMI-finance app which approves a loan of up to Rs 3 lakh in 30 seconds. The company provides documentation-free approval, on submission of the customer's PAN and Aadhaar card details. This innovation was possible due to the company's robust back-end and focus on analytics. This helped the company to separate the good and bad customer based on their past record. Such innovations create a better customer experience and help to maintain a competitive edge over rivals.
There are several examples of businesses who have successfully adopted the digital future and businesses who have lagged behind.
The future is digital. The winners of tomorrow will be firms that can systematically plot their digital transformation agenda and leverage digital across the value chain as they progress on this journey. If companies are unwilling to use technology to disrupt their business, someone else will do it for them. Businesses must be truly up to date with the changes being driven by technology, and be wary of the opportunities and threats.
Having said that investors must evaluate whether the digitalization is impacting only revenue growth or driving the profitability of the business too.
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