Digital transformation - A game-changer for CX
Sometimes, you hear brands talking about how they will improve customer experience; quite often, they launch programs half-heartedly and with the mindset to improve ROI. What they lose focus on is that effective programs start with a business problem.
Business problems have always been around, but things took another dimension with the COVID-19 pandemic, it brought the reality that any organization must be well-prepared for eventualities. The pandemic brought to focus the need for a wholesome digital transformation that is centered on the improvement of customer experience and not just to increase ROI.
According to an IDC report, 65% of the world’s GDP will be digitalized by 2022, enhancing more than $6.8 trillion of direct digital transformation investments from 2020 to 2023. This is a big opportunity for brands, however, customer experience will have a great deal of impact on the realization of this feat.
It’s only when customers are happy that they will purchase, they will prefer to forgo poor quality products at whatever cost. For digital transformation to make a meaningful impression on customers, there must be the integration of technology.
The first thing you need is to understand that CX means the totality of your customer’s experiences with your brand. These experiences include cognitive, emotional, alluring, sensory, and behavioral responses that have to do with all phases of the consumption process.
You need to know their sentiments and ensure they are satisfied during the pre-purchase, consumption, and post-purchase phases of the customer journey. Your digital transformation initiatives must be holistically consumer-centric.
How do you intend to improve your ROI if, for poor customer experience, you don’t have repeat purchases and positive reviews? What efforts have you put in place all along to reduce the friction of customer complaints and returns?
These are potent questions and concerns digital transformation, the process of reimagining a business through the implementation of new technologies and the optimization of legacy systems to improve the way operations are conducted, has come up to address. To enhance a good customer experience through digital transformation, the following technological innovations are being integrated.
Robotic process automation (RPA)
Digital transformation initiatives must integrate technology for meaningful results. For instance, robotic process automation (RPA) accelerates tasks, ensures greater accuracy, and improves operational efficiency.
A few years back, robots were only deployed into areas that were hazardous for humans; today, bots are doing great works in ensuring that customer experience is improved. Bots don’t have all the shortcomings associated with humans; they don’t get frustrated, and they can’t be easily irritated by customers’ complaints.
Bots don’t come to work with any form of pent-up anger; they can’t transfer aggression; they are there 24/7. What your customers want is real-time service, your capability to redress their sentiments and pain points is what will improve their experience and retention.
The revelation that it cost 5X more to acquire a new customer than to retain an existing one must be flushed down the drain. Today, it must cost more; brands that are digitally transforming are doing so to ensure that their customers have a very good experience, if you do everything possible to ensure that your customers are satisfied, it will be extremely difficult for another brand to grab your customers.
Knowing fully well that it costs more to convert a potential customer than to retain an existing one, why shouldn’t you integrate technology into your digital transformation initiatives?
Internet of things (IoT)
For the success of your digital transformation initiatives, you need customers’ reviews. This will enable you to understand how your customers feel about your brand and how to better improve your services towards them.
This is where IoT comes into use, and being a system of connected devices capable of transmitting and exchanging data without human intervention, integrating IoT into your digital transformation projects, better positions your brand for improving customer experience.
Augmented reality (AR)
You want the seamless connectivity between physical and digital which augmented reality offers for your digital transformation initiatives; helping to skyrocket the idea of the human-machine interface to another level entirely. By keeping real-world focus and adding elements that aren't really there, AR can greatly enhance your customers’ experiences.
Cloud comes to great use where you want to radically transform your business model. Cloud technologies are useful to digital transformation in ways such as:
- Increasing flexibility and your ability to maneuver.
- Helping to easily access resources you may need to render better services to your customers.
- A customer’s data is crucial to your efforts at addressing pain points; your ability to store and process data on demand is largely dependent on cloud technologies.
- Products and services get to customers at cheaper rates when you use cloud technologies to reduce hardware and infrastructure expenses.
- When your remote teams collaborate efficiently, it goes a long way in enhancing customer satisfaction.
- Customer satisfaction hinges on the large amount of data you gather and store effectively.
AI and machine learning
There is a great need to automate tasks of all kinds, make tough decisions easier, and ensure processes are more efficient in digital transformation projects. AI and machine learning allow a seamless execution of tasks that can be burdensome and stressful, which often result in employees getting irritated and transferring aggression to customers.
Along with the current computing power and machine learning tech, AI can provide analytics at unprecedented levels.
Big Data & real-time analytics
Gathering and analyzing customers’ data is critical to digital transformation. Big Data includes large volumes of structured and unstructured data, and the processing methods you deploy to distribute and analyze data.
The integration of a new tech often involves the measurement and evaluation of more data. Real-time decisions that can impact customers’ sentiments depend on how efficiently data is processed.
Also, your ability to produce reports in real-time and to organize effort and teamwork is crucial to how you succeed with your digital transformation initiatives, and ultimately to improved customer experience.
Alon is an Israely product and marketing executive with a track record in leading customer centric product management and inbound marketing strategy. While improving user engemenemt and customer, I help Start Ups achieve product market fit and expand their online footprint. I specialize in technology, entrepreneurship, customer experience.