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What is the connection between Digital Transformation and Customer Experience?

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What is the connection between Digital Transformation and Customer Experience1

Forrester in a study found that technology and economic forces have given customers the control over their interaction with any digital businesses. Custer experience is the sole focus of businesses that are adopting digital transformation.

What is Digital Transformation?

Digital Transformation in this new digital age is a business approach that more and more companies are undergoing. The process of digital transformation involves a business integrating technology (digital channels, devices)in all of its operating areas. The transformation results in changes like

  • Operation of the business 
  • How it delivers value to its customers
Improve Customer Retention

Digital Transformation and Customer Experience

Customer experience is an essential factor in business that plays a vital role in digital transformation. Innovation and improvement in customer experience is an important element that paves the path for the growth and success of a business. 

According to Mckinsey, a customer experience digital transformation can increase the revenue of a company by 20 to 50%. 

  • Customer Expectation and needs are changing thanks to the digital customer experience offered by the best-in-class companies. Companies such as Amazon have become the prime example of digital customer experience.  Amazon is now a global organization, with its customer obsession and leveraging technology the company focused on long term growth.

Similarly Companies like Uber, Starbucks, Zappos put the customers at the centre of their business. The companies are obsessed about delivering their customers the best experience possible.

Technological advancements and excellent customer experience as mentioned has raised the standard for the digital customer experience. It has increased the importance of optimization of end-to-end CX for every digital business in the industry. 

  • Innovation and optimization of customer experience has a highly positive impact on business revenue. One example of how digital transformation is bringing more revenue is New York Times. In the last 15 years around 70% of newspaper advertising revenue has been lost. New York Times, on the other hand, has 3 million subscribers and gains digital revenue of $500 million. 

According to Mckinsey, by undergoing digital transformation in customer experience process, B2B companies have experienced a revenue growth of 10 to 15% and cost reduction of 10 to 20%.

Some factors to consider for digital transformation

  • Focus on customer’s need and desire before creating or redesigning any touchpoint or feature.
  • Look at the whole picture of the customer journey to understand the customer experience. Don’s miss any dimension. 
  • Observe what top performing companies are doing better than you and learn from their strategies. 
  • Use all the knowledge collected from analytics, customer feedback and other sources. Work in collaboration with other departments to provide excellent digital customer services.
Customer experience

How do you offer a great Customer Experience with Digital Transformation?

Become obsessed with your Customers

What is the connection between Digital Transformation and Customer Experience2 1

The company needs to make a commitment to have a customer-first approach. The goal should be to create the best version of customer experience from the perspective of customers. 

 Customers are the most important part of your digital customer experience program. The aim is to make customers satisfied with their experience to ensure that they remain loyal to your brand and recommend your business to others. 

For this you need to have a holistic approach to the customer experience optimization. The responsibility to offer excellent customer service is not limited to customer support or any single department. It is the responsibility of the entire company to work together to ensure a great digital customer experience is offered to the digital customers. 

Prioritize your customer’s needs and expectations. Build an organization where every department is customer-obsessed.

Organization-wide approach

Digital transformation focused on customer experience is not a job for the customer service nor does it end at the front-end. It involves all the touchpoints including the back-end of the business process. The entire company with each of its departments must contribute to optimize and provide seamless digital customer experience. 

  • Customers share their concern or feedback about a product with the customer service believing that their feedback will reach the product teams. 
  • They expect you to share the information customers give you with other departments as well so that they don’t have to repeat it over and over again. 

Create a silos free environment. Every department should work together in harmony to achieve the main purpose that is excellent customer experience. If every department is acting on its own there will be conflicts in the process. 

Using CRM is the best way to keep every department connected. They can share information all of which is collected at a central location.

Improve Customer Retention

Understand the reason behind every pain points

Happy customers are good for the growth and success of business is the simple reason you should most definitely keep in mind. However, it is also better to go beyond this. 

Try to understand 

  • Why is your customer churn increasing?
  • Why is it difficult to acquire new customers?
  • Why do you have more unhappy customers?

Understand the reason for every pain point in a customer journey. It can help you understand what you are doing wrong in your digital transformation. You may have used all sorts of technology to equip your employees but you still haven’t been able to provide great digital customer experience. 

The reason can include change in market trends, change in customer expectation, lack of innovative products etc. It could also be a lack of options in digital channels, website design or difficult navigation on apps.

Don’t forget Human touch

What is the connection between Digital Transformation and Customer Experience3

Customers have a lifetime value of 306% when they establish an emotional connection with a brand. 

By definition “digital” is inhuman and remote. This makes achieving digital CX more difficult than traditional CX. It is important for businesses to understand that human touch is a major component of digital transformation. Combining human and technology helps achieve an enhanced digital customer experience. 

Human touch plays a crucial role in helping customers establish a relationship with the brand. It offers an emotional element to the otherwise inhuman process. Here, customers meet emotion and passion with technological advancements. 

In today’s digital landscape customers crave human connection. They want to feel as though they are important for the brand.  Provide personalized experience. 

  • Address the customers with their names on emails, notification or SMS. Understand the difference between creepy robot effect and compassionate human effect. 

Customers should respond to your personalized experience and not be scared to engage with your company.

Personalized Journey is customer’s favourite

Following the “human touch”, personalized journey helps customers feel connected with the company. Customers appreciate it more when they are recognized as an individual instead of a commodity or an ID. No. 

  • 73% of customers are more likely to purchase from a brand that addresses them by their name. 
  • 63% of customers claim that they stop purchasing from a brand that has poor personalization. 
  • 91% of digital customers are highly likely to return to brands that provide recommendations and offers relevant to the customers. 

Customers expect a personalized journey from all digital businesses because of the excellent personalized behaviour they receive from top brands. 47% of online shoppers check Amazon if a brand does not provide them with relevant recommendations when they are shopping from it.

Use proper tools to ensure that customers receive real time recommendations based on their purchase behaviour. Also, ensure that they receive personalized experience no matter what digital channel they use to connect with your brand.

Customer experience

FAQs

Digital Transformation helps companies to keep up with the customer expectation that is changing with the technology evolutions.

There are four areas in Digital Transformation

  • Technology 
  • Data 
  • Process 
  • Organizational

Digital transformation can help a company gather insight on customer’s purchase behaviour, preference, dislikes and pain points. As a result you can create an efficient marketing campaign that is appealing to the customers.

Improve Customer Retention

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