Digital transformation can be a tall order, and while many companies attempt it, several fall short. Businesses often approach these transformations by digitizing their existing operational model and replacing manual procedures with automated digital workflows. However, to do so successfully often requires a set of metrics, such as a digital transformation KPIs list, which track financial and operational efficiencies to monitor transformation effectiveness.
Digital Transformation KPIs List
Businesses often need more than traditional benchmarks to assess digital transformation success. Instead, they require more specific measurements that provide further insight into overall performance:
Scope of Transformation
First, a business should determine digital transformation objectives and their overall purpose. For example, some companies might focus on customer reach and look to globalize their customer base. Others may be more concerned with maximizing workflow automation.
Those scope metrics might include the following:
- Number of new visitors
- Monthly registration growth
- Organic user acquisition
- Workforce hours invested
A robust digital transformation also requires a long-term adoption of relevant technologies. Users who sign up for these technologies need replacements for manual operations currently consuming unnecessary work hours.
A business might use the following KPIs to measure active usage among those registered customers:
- Daily Active Users
- Abandonment rates
- The ratio of new users to existing ones
- User conversion rates
Internal KPIs
Effective team collaboration and positive employee experiences are also crucial components to business success. With many teams interacting remotely in an increasingly digital world, synchronizing and integration processes is increasingly vital.
There are many internal, employee-centric metrics from which to choose. Identifying the correct KPIs to measure internal operations can vary, but the list should include those metrics that track employee productivity and profitability post-digital transformation.
- Employee efficiency. Businesses should identify and evaluate the following statistics to determine whether new technologies are promoting team productivity:
- Number of automated tasks
- Unused employee hours
- Allotted time (hours) for innovative and strategic collaboration
- Gross revenue per employee
- Software Adoption and Usage. Reviewing software adoption and usage are other important data points for determining program performance.
Businesses can use KPIs to determine whether these solutions make employee jobs easier by evaluating how comfortable employees are with these new tools.
This list might include the following metrics:
- Number of employees using the technology
- Number of employees utilizing all technology functions
- Time saved by using the technology
Financial Performance KPIs
Any business’ endgame is driving new business and increasing profitability.
Metrics that help evaluate financial performance include:
- Revenue generated. KPIs should examine the financial gains of any new tools used internally. Those tools should enhance the revenue generated and signal both future performance and improved scalability. If the numbers reveal net losses, the company should reevaluate its digital transformation strategy.
- Innovation rate. Tracking scalable growth efficiency and the pace of innovation is an important KPI for measuring company performance. These metrics necessitate calculating the return on investment (ROI) from technology-driven changes in operation and their impact on revenue.
Customer-centric KPIs
While profitability is the goal, it is not possible without enhancing the customer experience. The ongoing tracking and evaluating of the customer experience are often crucial to maintaining (or improving) success levels.
As such, businesses might use the following KPI list to monitor customer engagement:
- Evaluate the user journey. A digital transformation should create streamlined customer journeys that result in conversions.
The following KPIs metrics can help organizations determine whether these conversations are frequent:
- Number of automated tasks
- Unused employee hours
- Allotted time (hours) for innovative and strategic collaboration
- Gross revenue per employee
- Monitor customer acquisition and lifespan. Traditional KPIs such as website traffic, leads generated, and bounce rates may not accurately reflect user interactions.
The following list can help you get a more accurate picture of this:
- Rates of customer acquisition
- Retention rate of customers
- Churn rates
- Customer average lifetime value
- Customer satisfaction Finally, user opinions on these new technologies are often crucial because customer satisfaction reflects how effectively technology investments result in the anticipated financial gains and organizational advantages.
The following KPIs are well-known and oft-used metrics for assessing customer satisfaction:
- Customer Satisfaction Score (CSAT)
- Customer Effort Score (CES)
- Customer Loyalty Index (CLI)
- Sentiment Analytics
User Engagement KPIs
The technology must have a significant and sustained impact to warrant full-time user participation.
If users are only partially engaged, it might be because the technology does not provide the necessary solutions to encourage a permanent switch from current work routines. The existing procedures might include conventional (manual) methods or other existing technologies that are less efficient than newer solutions but not far enough behind to bother switching.
Additional information on newer and popular technology features can help businesses better interpret usage patterns and adjust future products.
The following data points might help describe those usage patterns and trends:
- Traffic sources
- Bounce rate
- Exit rate
- Net promoter score (NPS)
KPIs Are Not “One and Done” Metrics
Although the specifics of a digital transformation vary from one business to the next, most organizations use similar KPI lists to assess the success of their digital initiatives.Regardless of which metrics are essential to a given business, all KPIs require ongoing evaluation and as-needed modification for enterprises to maintain success and step closer toward attaining the desired ROI.
Request a quote today and discover how Cask ServiceNow solutions can improve your KPIs and boost digital transformation success.
