Today’s customer expects immediate results anytime, anywhere and in any format. As a result, the modern customer journey is now driving an influx of digital transformation across brands of all types.
The digital transformation we are seeing today is a reaction rather than a purposeful strategy. To keep up with today’s always-connected customer, businesses are realizing they must embrace technology to deliver a customer-centric strategy that provides the ultimate customer experience.
And while putting the customer first is already at the center of many organizations’ strategy, creating a customer experience that delights and produces takes time.
What Is Digital Transformation?
For some, digital transformation has become a trendy buzzword used over the last few years as a marketing tool. It is, however, a very real and powerful strategy many companies are turning to in order to redefine their brand, operations and more.
Digital transformation has taken on many definitions, but in simple terms it is about using digital technology to improve and change how a business interacts with its customers.
Being digital means integrating technology into all areas of the business, simplifying channels and portfolio by understanding customer needs and behaviors. A true digital transformation should bring a business closely attuned on the customer decision journey and keep the insight gained at the core of your business model.
When Is Digital Transformation Right for You?
A digital transformation is likely in the cards for your organization if the customer experience is not already driving your business’s digital culture. In fact, the direct impact on the customer relationship is the driving factor for many of today’s digital transformation initiatives.
Organizations that have a disconnected customer experience or are unable to clearly see critical data points in order to improve the customer journey may be ready to make changes. This type of digital transformation can require changes to operations, data and technology infrastructure, and customer touchpoints.
Another sign that change may be on the horizon is dropping customer satisfaction, fewer repeat customers or poor word of mouth performance. If your business is experiencing any of these patterns, your customers are likely not having the best experience.
Not having the data to develop a good understanding of your customers and their lifecycle is another red flag. A digital transformation that involves making changes to how you collect data and use it to understand the customer journey can offer a better view of challenges and opportunities for additional improvements.
Digital transformation could also be on the horizon if the customer experience cannot be measured. There can be no improvement without meaningful metrics and insights. Historically, many of the metrics and reporting have been siloed and difficult to correlate, leading to information cobbled together from many sources and less actionable insights.
Investing in digital transformation of systems, platforms and processes is key in solving these pain points.
Exceptional CX Should Be Driving Your Transformation
In a recent global digital study, business leaders were asked about factors that influence their decision to implement a digital transformation strategy. Nearly half of all organizations cited customer experience and satisfaction as their leading influences.
An exceptional customer experience through digital transformation creates highly engaged customers, which has proven beneficial on many fronts. A study from Rosetta Consulting found that these customers are:
- 6x more likely to try a new product or service from their preferred brand
- 4x more likely to have referred your brand to their friends, family and connections
- 2x more likely to make a purchase with their preferred brand, even when a competitor has a better product or price
Furthermore, the study found that highly engaged customers buy 90% more frequently, spend 60% more per purchase and have 3x the annual value (compared to the average customer).
Catering to a Customer-Centric World
To accommodate the new, modern-day buyer, your business needs to think digital first—because your customer already does.
Today, there is no difference between online and offline. Customers expect the same brand experience—whenever and wherever they want it and whether it be on their desktop computer, mobile phone or in-store.
Digital technology has changed consumer habits and shifted expectations. If your business hasn’t also, it’s time to consider a digital transformation.