Digital Transformation Success: Why Measuring Key KPIs Matter

Digital transformation has become a necessity rather than an option for businesses in this digital age. With too much competition, changing consumer habits and interests, businesses can’t cope with the competition unless they are transformed. Thanks to advancements in technologies, transformation is not that hard or even bootless.

Though the hype for digital transformation is on trend for a decade, in recent days it turned out to be mandatory not just a supplement for traditional business. Hence, most small and medium businesses are inflected towards technology transformation whereas many big companies adopted the culture long back. The best example is how the eCommerce giants such as Amazon are making profits despite pandemic. Yes, while many companies that only operate as brick and mortar businesses become empty during the pandemic, the companies that exist online are enjoying the profits or at least fighting the competition and surviving in the industry.

However, it is not just about transforming your business. Most importantly, it is not just undergoing digital transformation and forgetting about what just happened. You need to measure and track how digital transformation is unfolding your business. Did it boost your ROI, if yes, what’s the number, or did you at least take the first step to success? Because unless you measure your performance, you can’t grow further.

Therefore, it is important to measure your digital transformation success. Again, it is not that hard. You can measure your success by measuring certain KPIs (Key Performance Indicators). The KPIs vary from industry to industry and company to company. However, here are 3 important KPIs that are common for any industry and company.

What KPIs You Need to Measure?

There are many things to measure digital transformation success. But of those, below are certain KPIs (Key Performance Indicators) that impact on the bottom line. So, ensure you never oversee them.

Digital Transition Adoption

Digital transformation is all about changing the behaviors and mindsets of both your employees and customers. Moreover, it is at its core, a forever transformation as you can’t stop upgrading your business at any certain point. So, check if your team is able to adopt the transition if they are using the tools you implemented in the system. Because it is important to transform completely and find out ways to utilize the transformation deeply rather than to skim the surface. This can be done by tracking the activities and progress of employees every week or even daily so that you can learn and grow every day which makes the success closer.

Customer Experience

The major metric to measure is customer experience as they are the ones who make your business. So, check if your customers are able to sail across your ecosystem. Your goal at the beginning of the transformation should be to see if your customers are trying to know more information from you. Therefore, rather than measuring the number of sales or traffic, you better know if customers are reaching you for advice or know more information. The scenario changes over time once you start creating a positive experience for your customers.


Different companies have different KPI metrics. Hence, there are no universal KPI metrics that apply to all companies. Because the scenarios are different for different companies. Some might launch digital transformation in their companies for the first time, while others might transfer their business from legacy systems to cloud-based platforms, and some might implement innovative features complimenting or supplementing their existing digital activities. Hence, the ROI differs in the first time-frame. However, you can calculate the costs and profits based on your scenario.

These are just the most important and overall KPIs you should measure. There are many other metrics such as user lifetime value, hours saved, revenue from digital products and services, marketing performance, business sustainability, team morale, core value metrics etc., you should measure too.

Why Measuring Key KPIs Matter?

Now comes the important part – why it is important to measure Key Performance Indicators.

According to IBM, over 84% of companies fail in achieving digital transformation. The major reason is that most companies after adopting digital transformation, do not care about tracking their progress. Hence they miss out on what works and what are areas of opportunities. So, it is crucial to measure KPIs and hence measure digital transformation success. In the end, there are only many advantages for measuring the important KPIs. However, here are 3 important reasons why measuring key KPIs matter.

Business Objectives & Decision Making

Your business objectives have to be at the forefront no matter what way you choose to run the business. Because, your final decision depends on your objectives and goals, of course, it should be. Measuring KPIs help you understand if your business objectives are really communicated well across the organization. Thus, it not only helps you recheck over your objectives but also lets you take the right final decisions.

Find the Success Formula (Performance Management)

When you measure the key KPIs regularly, you will know the ins and outs of the digital strategies. That way you will likely find out what works and what’s not. If something works, you can further implement the working strategies to other departments, else you can revise your strategies.

Overall, measuring KPIs is like performing a trial and error which helps you know the success formula practically.

Better Growth

Whether it is for ROI or keeping the objectives forefront or expanding your business, measuring important KPIs will only result in good yields. You can analyze what is working, how much time it takes to see the outcomes, and how to grow even better. Finally, you will have control over the end-results by making changes accordingly.

Bottom Line

Digital transformation brings in more ROI by improving operational efficiency, marketing, and customer experience. There’s no doubt in that. However, the success of digital transformation varies from business to business. But it goes without saying that every business should measure their KPIs to understand the progress and success of the strategies planned.

However, before implementing digital transformation, have a definite transformation strategy, define your goals so that you know what you are going to get finally. Also, analyze where you are now – this is a vital task you need to do in every step of your transformation journey. Most importantly, measure the crucial KPIs to track and upgrade your digital transformation for success.