Digital transformation strategy: A nudge can be the spark that fuels digital transformation


During the past year, consumers have moved dramatically toward online channels, and companies and industries have responded in turn. Today 50-80 percent of consumer interactions happen digitally. To stay competitive in a new digital era, more and more companies and governments find that new technologies are not just a source of cost efficiency, but also a way to ensure loyalty and engagement amongst both employees and customers. However, from a behavioral point of view, loyalty and engagement come with making the right decisions, the easy ones. Hence making sure that e.g. our online shopping experience or digital workflow, is as intuitive as the physical ones. But, when exploring new technologies most companies miss the one thing that will ensure a measurable change in habits and an effective digital transformation strategy: Learning from our physical surroundings before designing the digital user experiences. Take for example Apple Pay. From 2019 until 2020 the Apple Pay penetration rate grew from 441 to 507 million users (1). The reason for that, from a behavioral point of view, is its intuitive interface and ability to imitate a physical credit card in the actual payment situation; When the phone touches the credit card machine the image of a physical credit card shows up. This makes us intuitively understand that we have to tap it onto the contactless payment system, just like we would normally do with a physical credit card. This imitation of the physical credit card makes the situation seem familiar and makes us feel safe. We don’t have to change our habit to interact with a new digital payment system which is why Apple Pay is preferred by consumers worldwide. This digital image of a credit card nudges you and that makes digital payments easy. So, to accelerate digital transformation and behavior change, translating physical surroundings into digital ones, is crucial.  To learn more about nudge theory and cases,  click here