Why Your Company Needs to Focus on Digital Transformation to Improve the Customer Experience
If your company isn't keeping up with the times, you will get left in the dust. And when it comes to digital transformation, the stakes are high. This isn't just about modernizing your business – it's about giving your customers the VIP treatment they deserve.
- Digital transformation is essential for companies to stay competitive and provide a great customer experience.
- Digital technologies can personalize the customer experience, offer convenient self-service options, and streamline internal processes.
- Companies that take the plunge into digital transformation experience a plethora of advantages - from increased revenue to brand-new prospects for growth
Why Digital Transformation is Essential for Great Customer Experience?
According to a recent study by Harvard Business Review, 88% of executives recognize that customer engagement significantly impacts company revenue. But this study also reveals that less than 50% of executives say that they are investing in new or improved customer experience technologies, and only 40% say they are effectively using data to send customers the right message at the right time and in the right channel.
This is where the problem lies.
Consumers anticipate and demand a smooth, tailored experience when interacting with brands through all touchpoints. The McKinsey study found that 71% of customers expect personalized interaction, and 76% become frustrated when it's not present.
Why do Companies Need to Focus on Digital Transformation?
One of the biggest benefits of digital transformation is the ability to personalize the customer experience. Gone are the days when a one-size-fits-all approach was good enough. Nowadays, customers expect a tailored experience that caters to their needs and preferences.
Using data analytics and artificial intelligence, companies can gather insights about their customer's preferences, behaviors, and needs and use this information to tailor their marketing and sales efforts to better target individual customers.
Targeted marketing and sales efforts lead to increased customer satisfaction and loyalty. Highly engaged customers buy 90% more frequently, spend 60% more per purchase, and have 3x the annual value (compared to the average customer).
No one has time to wait around, so if your business isn't making it convenient for customers to get what they need, they'll go elsewhere. Consumers seek a seamless and convenient experience when interacting with businesses.
To gain a competitive edge, companies should leverage digital technologies like chatbots and online portals that provide a smooth customer experience with self-service options so clients can get what they need quickly without waiting for help from a human representative.
Keeping this in mind, Starbucks made customer convenience its priority. One such effort was the Starbucks app, which allows customers to order and pay for their drinks in advance and earn rewards for their purchases. This has not only made the customer experience more convenient, but it has also helped Starbucks reduce wait times and improve efficiency at its stores.
3. Streamlined Operations
Digital transformation can also help companies streamline and automate their internal processes. This means you can get more done with fewer resources, translating into cost savings and lower prices for your customers.
Fashion retailer Zara has also embraced digital technologies to improve the customer experience and drive sales. The company has implemented RFID (radio-frequency identification) technology in its stores, which allows it to track inventory in real time and quickly restock popular items. Zara was able to reduce out-of-stock situations and improve its in-store experience for customers.
What is Customer-focused Digital Transformation?
A customer-focused digital transformation initiative is a strategic and comprehensive approach to improving the customer experience by leveraging digital technologies and processes.
This involves end-to-end integration of all customer touchpoints, from mobile applications and websites to social media, CRM systems, analytics, and customer service channels.
An organization must understand how different touchpoints interact with each other, and how to leverage analytics tools such as AI/machine learning and predictive models to provide real-time insights and recommendations.
Organizations need to invest in the right resources and infrastructure to ensure that their digital transformation initiatives are successful, including training employees on the new technology and processes, and ensuring that security protocols are up to date and properly implemented.
Companies that take the plunge into digital transformation experience a plethora of advantages - from increased revenue to brand-new prospects for growth, the possibilities are limitless.
UniAspect Digital uses digital technologies to personalize the customer experience, offer convenient self-service options, and streamline internal processes, to give our clients a significant advantage over their competitors.
According to a recent Deloitte report, companies with higher digital transformation maturity reported 45% revenue growth. And 29% of highly digitized companies reported a positive impact on growth and innovation, while 41% emphasized a positive impact on sales and marketing functions. Get in touch today to find out how we can help your organization meet its technology growth goals.