Digital transformations are reshaping companies. They’re changing the structure of businesses and teams, and how they work together. Such transformations also change how companies engage with and deliver their services and products to their customers. What’s more, digitized companies are producing a lot more data.
All of this is creating new dynamics in dealmaking. Where assessing historical sales and costs and projecting future revenue was once enough to help investors determine the viability of a deal. Today, as dealmakers face increasing pressures to create extra value from deals in highly competitive and fast-changing markets, they need to assess a broader set of factors to capture a more complete picture of a deal’s long-term value potential.
In this point of view, KPMG professionals build on Diligence proposition that calls for a wider aperture when assessing a company’s digital footprint – both the potential risks digital businesses present as well as the levers that can unlock revenue opportunities in terms of new products and services, customer acquisition, retention, penetration and share of wallet. With a more broad-ranging view, dealmakers can capture wider picture of a deal’s values as well as its future viability.
Due diligence and the digital footprint
How can assessing the digital customer journey inform future deal decisions?
The three phases of the digital customer journey help dealmakers dissect transactions and customer behaviors - the data of which can be turned into insights to inform future decisions.
Scour website analytics
Web analytics offer a treasure trove of customer information that offers dealmakers meaningful insights that can help management make effective and strategic decisions to further grow the company.
Assess customer behavior
Digital data can help dealmakers better understand a company's customers, their purchasing behaviors and other interests - all of which can be used to evaluate cross-selling and up-selling potential.
Analyze customer reviews
Online customer reviews about a customer's experience with a company can be used to make value-enhancing improvements, evaluate customer brand perceptions and identify other opportunities.
How KPMG professionals can help
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