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How Smart Brands Increase Customer Retention Rates with Digital Transformation

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It’s impossible to find brands that still run on the traditional system of operations. Every brand you find is either undergoing digital transformation or preparing to undergo digital transformation. In fact, a recent report by Constellation Research survey shows that 77% of CIOs make digital transformation a top priority in their annual plans. Clearly, there is a strong relationship between brand growth and digital transformation.

The major reason for the wide adoption of digital transformation is its ability to increase customer retention rates. Therefore, it is vital that you put efforts into transforming your brand digitally.

Thankfully, this article focuses on digital transformation and how it increases customers’ retention rates. Also, this article discusses common brands and the digital transformation strategies they employed. First, here are a few things to know about digital transformation.

What is Digital Transformation?

Digital transformation refers to the utilization of technology and people to create a synergy, producing results to satisfy customers’ needs. In creating strategies, several brands try as much to involve customers’ interaction with interactive campaigns.

Also, digital transformation can refer to the digital turn-around business owners make to satisfy their customers.

Against popular opinion, digital transformation is not centered on incorporating technology alone. There are several components of digital transformation that bring about a successful digital transformation.

A successful brand digital transformation must involve the use of tools like data analytics, E-commerce strategies, and other digital transformation strategies. Also, a successful digital transformation brand must be one that drives traffic for your brand.

We must mention that all digital adoption platforms must channel their efforts into satisfying their customers. In digital transformation, the customers’ need is prioritized and emphasis is on providing value to the customers. Therefore, it is vital that customers’ surveys are carried out to collect useful information when coming up with digital transformation strategies.

According to Richard Rumelt, a good digital transformation strategy must contain:

  • Diagnosis: the identification of a challenge, and its simplification.
  • Guiding policy: the approach of treating the challenge.
  • Coherent action: the step-by-step action to carry out the guiding policy.

Further, digital transformation comes with digital trends. Some digital transformation trends include:

  • Real-time data processing
  • Democratization of Innovation
  • The expanded cloud
  • Contactless solutions
  • Composable enterprise

It is worthy of mention that the essence of digital transformation is to retain customers. Research shows that you have a 60% – 70% chance to sell to your “old” loyal customers than new customers. Another report says your loyal customers are more likely to test your new products than old customers.

A successful brand has completely sought ways to retain its customers. Proper retention of customers can initiate word-to-word marketing as loyal customers are likely to spread words outside their circle. In fact, a study shows that there is a strong link between customers’ retention rate and a company’s revenue. A 5% increase in customer retention can increase a company’s revenue by 95%. Let’s take a look at common brands and how digital transformation has retained their customers.

Digital transformation: Common brands and Their Strategies

Different strokes work for different folks. While some brands focus on a transformational strategy, such a strategy may prove abortive to other brands. For instance, Coop supermarket employed digital transformation to build a real community around their brand. Here are some brands and the digital transformation strategies they employ to retain customers.


Comcast is an American multinational telecommunication company that has kept its chart high since 1963. Comcast is the second-largest broadcasting television by world revenue. It is also the largest TV Company in the United States.

Since the establishment of the company, there have been many changes to the broadcasting sector. However, Comcast has still retained its title as the best broadcasting and cable television in the United States. Clearly, Comcast undergoes digital transformation now and then to retain their customers – invariably, their position on the chart.

Comcast underwent a recent digital transformation where it introduced new products to its customers. The new products included voice-activation controls and a video platform for viewing channels. However, this strategy wasn’t successful for the company, so they came up with another strategy.

The new strategy which worked effectively for the company used machine learning to recommend channels to users. Comcast was able to come up with this after tracking their IT investments and technology usage to find cost-effective areas.


Nike is another brand that applied effective digital transformation strategies to retain its customers. Nike strengthened its E-commerce strategy and Data analytics as a strong digital transformation strategy. They also diverted to digital marketing to reach more customers and allow room for more customers. For Nike, this strategy may have worked, the same strategy wouldn’t have been effective for Comcast.


Just like every brand, before Netflix, there were other brands. A major brand before Netflix was Blockbuster. Blockbuster and Netflix were in close competition as they offered the same services – entertaining services. However, the blockbuster was quickly replaced by Netflix.

Netflix applied a type of digital transformation strategy that Blockbuster may have failed to apply. Netflix researched and developed machines that help select customers’ interests. This way, one will likely come across similar videos as they use Netflix.

Further, Netflix gave customers details about videos that were out of stock. This way, they were able to save customers the efforts of going to rentals.

 To Wrap it Up

Digital transformation is beyond incorporating digital components into your brand. Digital transformation is more about making do with both digital and manual components of brand growth strategies. Any brand that is able to efficiently utilize both components will create the best values for customers.

We cannot undermine the role of digital transformation in customer retention. Applying the right strategy will cause an increase in your customer retention rates. Invariably, an increase in your company’s revenue.

There are different digital transformation strategies that work for different brands. In this article, We extensively discussed three major brands and the digital transformation strategies they applied.

Published: March 14, 2022

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Efrat Vulfsons

Efrat Vulfsons is the Co-Founder of PR Soprano and a data-driven marketing enthusiast, parallel to her soprano opera singing career. Efrat holds a B.F.A from the Jerusalem Music Academy in Opera Performance.

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