Digital transformation has become a top priority for businesses in today’s fast-paced, technology-driven world. As companies strive to stay competitive, they are turning to digital tools and strategies to streamline processes, improve efficiency, and deliver better customer experiences. Customer experience is a key driver of digital transformation, as businesses recognize that a positive customer experience is critical for long-term success. A study conducted by Gartner in 2021 found that 81% of organizations that prioritize customer experience in their digital transformations report an increase in customer retention.
What is customer experience?
Customer experience (CX) is the perception that customers have of a business based on their interactions with the company across all touchpoints, including online and offline channels. CX encompasses every aspect of the customer journey, from the initial awareness of a product or service to the post-purchase follow-up. A positive CX can lead to customer loyalty, repeat business, and positive word-of-mouth recommendations, while a negative CX can result in lost revenue, a damaged reputation, and a decrease in customer retention.
How does customer experience drive digital transformation?
A leading airline company sought more seamless and personalized experiences in their digital transformation journey after recognizing that its customers’ expectations were evolving. To address these changing demands, the company embarked on a digital transformation journey with a strong focus on enhancing the customer experience.
The company integrated various technologies throughout the passenger journey. For example, they introduced biometric facial recognition technology for seamless and contactless check-in and boarding processes. They also focused on leveraging data analytics and AI to gain insights into customer preferences and behaviour. By analyzing customer data, they could provide personalized offers, targeted promotions, and tailored experiences based on individual preferences and travel patterns.
As a result of their digital transformation efforts, the airline reported increased passenger engagement, higher customer retention rates, and positive feedback on the ease and convenience of their digital services.
By leveraging digital tools and strategies, companies can create seamless, personalized experiences that meet the evolving needs and preferences of customers. Here are some ways in which customer experience could drive digital transformation
Customer-centric mindset
A leading eCommerce company app sends users geo-triggered push notifications when they’re near a store that has a relevant sale. The app also incorporates images (including GIFs), emojis to make your push notifications noticeable. They have successfully executed several personalized campaigns based on past user purchases.
A focus on customer experience requires a customer-centric mindset, which prioritizes the needs and preferences of customers above all else. This mindset encourages businesses to use data and analytics to gain a deeper understanding of their customers, and to tailor their products, services, and marketing strategies accordingly.
Omni-channel presence
A leading fast-food chain expanded its digital presence through partnerships with third-party food delivery services. This enabled customers to order their favourite food items through the delivery apps, providing an additional way for customers to access the company’s products. Besides the business introduced mobile ordering and payment kiosks, allowing customers to order and pay for their food on their own. The company also incorporated digital displays and menu boards that can be updated in real-time, ensuring customers are always up to date on the latest products and promotions.
Customers today expect to interact with businesses across a variety of channels, including social media, email, chat, and phone. Digital transformation enables businesses to create an omnichannel presence that allows customers to seamlessly move between channels and receive a consistent experience across all touchpoints.
Personalization
A global OTT streaming giant uses data to provide personalized recommendations to its customers. The company collects data on the user’s viewing history, preferences, and ratings to suggest shows and movies that are likely to interest them. The company uses this data to create a unique and personalized experience for each user.
Personalization is key to delivering a positive customer experience. By leveraging customer data, businesses can personalize their marketing messages, product recommendations, and customer support interactions, which can lead to increased engagement, satisfaction, and loyalty.
Data-driven insights
In recent years, a global beverage chain has been using data analytics to optimize its mobile ordering and payment system, which has become increasingly popular among its customers. The business gained valuable insights into customer behaviour and preferences by collecting and analyzing data from customer interactions. Using the data collected, the company delivered personalized recommendations, streamlined the ordering process, and optimized menu offerings. The company’s operational efficiency also improved after they started analyzing sales patterns and foot traffic to forecast demand accurately. This enabled them to allocate staff and resources effectively.
One metric that the business uses to measure customer experience is customer satisfaction scores. They collect data through customer surveys and use analytics tools to analyze the data and identify areas for improvement. For example, if they notice that customers are unhappy with long wait times at certain locations, they can use this data to optimize staffing levels and improve efficiency.
Conclusion
Customer experience is a critical driver of digital transformation. By embracing digital tools and strategies, businesses can create personalized, omnichannel experiences that meet the evolving needs and preferences of customers. This, in turn, can lead to increased customer satisfaction, loyalty, and revenue, as well as a competitive advantage in today’s digital marketplace. Read our blog to find out more about the role of Digital Transformation in creating omnichannel experiences for users: An account of how Digital Transformation enabled an organization to create an omnichannel user experience
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