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How Customer Experience Drives Digital Transformation

Digital transformation

Post summary:

  • What is digital transformation?
  • Understanding the new, digital customer experience
  • 3 ways to get started with a digital transformation strategy

Digital transformation is forcing companies to change their business models and adapt to the new market reality.

What’s interesting about this is that it’s not the companies that are driving this change.

Instead, this change is being driven by the customer.

Today, customers expect relevant content in relation to what they’re doing anytime, anywhere and in the format and on the device of their choosing. It's their journey that dictates your strategy.

And in order to keep up with this new kind of “always-connected” customer, your business must embrace technology to deliver an unmatched customer experience.

Fortunately, putting the customer first is already at the center of many organizations' strategy.

According to research from IDC, two-thirds of the CEO’s of Global 2,000 companies will shift their focus from traditional, offline strategies to more modern digital strategies to improve the customer experience before the end of the year - with 34% of companies believing they’ll fully adopt digital transformation within 12 months or less...

...which explains the increase in digital spending.

The net global spending on digital transformation in 2018 was approximately $1 trillion.

This number is expected to increase to more than $2 trillion by 2022.

(In fact, 79% of companies admit that COVID-19 increased the budget for digital transformation).

However, despite this forecast, we’re far from complete digital adoption.

In their State of Digital Business Report, Progress revealed that 47% of companies haven’t started their digital transformation yet - while 59% are worried that it might already be too late for them.

And there’s good reason to worry:

The same study found that 55% of businesses believe they have less than a year before they start to suffer financially and lose market share.

digital transformation laggards

That gives you less than 12 months to digitally transform your organization before you start to lose business.

It’s not a lot of time, is it?

The good news is that we can help you get started.

First, we’ll explain what digital transformation is.

Then, we’ll introduce you to the new, digital consumer and how you can use technology and data to provide them with a better customer experience.

What is Digital Transformation?

Digital transformation is the integration of digital technology into all areas of a business, resulting in fundamental changes in how a business operates and the value they deliver to their customers.

Put simply, it’s about changing the way a business interacts with its customers and how they provide their customers with a consistent experience whenever and wherever they need it.

In fact, when asked about factors that influence a business’ decision to implement a digital transformation strategy, nearly half of all organizations cited customer experience and customer satisfaction as their leading influences.

The companies that do transform digitally are creating highly engaged customers.

And these customers are:

  • Six times more likely to try a new product or service from their preferred brand
  • Four times more likely to have referred your brand to their friends, family and connections
  • Two times more likely to make a purchase with their preferred brand, even when a competitor has a better product or price

Furthermore, highly engaged customers buy 90% more frequently, spend 60% more per purchase, and have 3x the annual value (compared to the average customer).

That's not all.

A study at MIT found that companies that have embraced digital transformation are 26% more profitable than their peers!

As the table below illustrates, there's a huge revenue and growth opportunity you could be taking advantage of by digitally transforming your business!

digital transformation case studies

One thing's clear:

It's the customer who is in the driver’s seat.

And in order to deliver on a better customer experience, you first need to understand who this new kind of digital customer is.

The New, Digitally Conscious Customer

Digital technology has transformed consumer habits.

Mobile devices, apps, machine learning, automation and much more allow customers to get what they want almost exactly at the moment they need it.

What’s more, these new digital technologies have caused a shift in customer expectations, resulting in a new kind of modern buyer. Today's consumers are constantly connected, app-native, and aware of what they can do with technology.

Because of the opportunities that rise from using modern technology, customers often rate organizations on their digital customer experience first.

Digital first requires you to rethink how you interact with your customers.

  • For B2B sales teams, digital first means replacing cold calling with social selling. Your customers are already active in social media and that’s where you need to be. Instead of waiting for the customer to contact you, you will need to reach out to them, build a relationship and help educate them. You can do this by sharing relevant content and your expertise as part of a solution to their problem.
  • For marketing teams, digital first means reducing your spend on offline marketing activities, such as direct mail, billboards and TV ads. Your customers want (and expect) highly targeted messages, which can only be achieved through a data-driven marketing strategy. Now, you need to use digital channels to implement search engine marketing, account-based marketing and email marketing strategies.
  • For customer service teams, you’re no longer restricted to waiting for the phone to ring or a fax to come through. Digital first is not just about being reactive. It’s about being proactive in the way you help your customers, who use a wide range of channels to seek out support. Social media, reviews sites, forums, and communities are all now part of the customer service eco-system.

To accommodate the new, modern-day buyer, your business needs to think digital first, too.

Getting Started with Digital Transformation

Digital transformation offers organizations an opportunity to understand the modern-day buyer, engage with them and deliver on their expectations with a multi-channel customer experience.

However, of the $1.3 trillion that was invested in digital transformation, more than $900 billion has been wasted.

So, why do some digital transformation efforts succeed while others fail?

To help you succeed, here are three ways to help your business to get started with digital transformation.

1. Define your strategy first before executing digital transformation

The business world is face-paced due to rapidly changing technologies and innovations. Even established companies are being disrupted every year by evolving and advancing technologies.

In 2009, Uber transformed the taxi industry by allowing people to hail a ride through a mobile app. Amazon Go is the latest adaptation to Jeff Bezos’ booming e-commerce business by offering a chain of convenience stores in the US with automated, cashier-less self-checkout stations (that’s a mouthful).

More recently, Google and Elon Musk are racing against each other to release self-driving cars into the world.

With all these new ideas being introduced into the marketplace, companies need a long-term strategy to adapt, compete, and survive in this new digital landscape. 

A digital transformation strategy starts by asking 3 fundamental questions:

  • Where are you today?
  • Where do you want to be tomorrow? 
  • What are you going to do to get there?

Companies need a plan that not only outlines which technologies need to be adopted but also protection from digital disruption. That’s why understanding your core systems and processes to identify opportunities is critical before harnassing the potential of digital transformation.

2. Reimagine the customer journey

With customers gaining control over the way companies deliver experiences, it’s time to build new experiences that meet their demands.

In an HBR survey, 40% of respondents say customer experience is their top priority for digital transformation. 

Since every experience with a customer impacts their overall perception of a brand, taking an approach that focuses on relationships with customers is a wise move.

In the same survey, 72% of respondents say they are excited about the shift to digital as it creates new opportunities to create better relationships with customers. So if you’re looking to improve your customers' overall experience, invest your time and resources into technology that enhances business relationships.

3. Create an agile, flexible IT environment

Having the right technology to power up digital strategies is fundamental in today’s business world. But, did you know that 45% of executives believe their companies lack all the necessary technology to conduct a digital transformation strategy?

Fortunately, organizations recognize the need for implementing agile systems and 86% of businesses believe that cloud technology is critical to digital transformation.

cloud adoption critical to digital transformation

The cloud enables companies to be fast, dynamic and flexible  – giving your organization the ability to test new projects that are cost-effective and low-risk – allowing you to use technology to meet customer demands quicker.

By easily connecting SaaS applications such as customer databases, Big Data analytics, web and mobile apps, you can digitally record all touch-points to create a 360-degree view of your customer. By using this data, you will learn how, when and why your customers do business with you and from it, you can provide a better, more improved customer experience.

This brings us to the next factor in digital transformation – personalization.

4. Personalize the customer experience

Today’s buyers want organizations to treat them as a unique individual, and know their personal preferences and purchase history.

According to Accenture, 75% of customers admit being more likely to buy from a company that:

  • Recognizes them by their name,
  • Knows their purchase history, and
  • Recommends products based on their past purchases.

The best part is that they’re happy for organizations to use their data..

customers happy to share personal data

The good news is that customers are happy for organizations to use their data to improve their experience.

But, in order to take advantage of this opportunity, you need to invest in CRM.

Without CRM, you cannot treat your customers as individuals. And without storing the history of how your business interacts with them, it’s impossible to provide a unique experience.

With a CRM system, you can analyze and study customer-related data based on a customers’ previous interactions with your company. For example, you can get a good understanding of your customers by evaluating general requests, product quotes and support enquiries. This data can then be used to create highly targeted messages to match customers’ individual preferences, which results in a more personalized experience.

Delivering the right message to the right person at the right time brings us to our third and final success factor for digital transformation – a seamless multi-channel experience.

5. A seamless multi-channel experience

Technology has empowered customers to get what they want, whenever they want, and how they want it.

More than half of all consumers now expect a customer service response within one hour. They also expect the same response times on weekends as on weekdays. This need for instant gratification has forced organizations to remain accessible and on-demand, 24 hours a day, 7 days per week.

Everything is now happening in real time, which is why those companies that can offer immediacy, personalization and accessibility to their customers will win out in the long-run.

Today’s consumers are not tied to a single channel. They browse in-store, shop online, share feedback through mobile apps and ask questions for your support team on social media networks.

Tying all of these interactions together allows you to create a single digital profile every time a customer interacts with your business.

Conclusion

In today’s fast-moving, always connected and always on society, companies are forced to seriously consider implementing a digital transformation strategy, if they haven’t already.

Digital transformation offers organizations an opportunity to engage modern buyers, and deliver on their expectations of a seamless customer experience regardless of channel or place.

That being said, digitally transforming your business can be quite a complex project.

So, here’s how to get started:

  1. Instead of purchasing on-site solutions, think cloud solutions first. Cloud solutions enable you to be agile and meet customer demands quickly. In addition, you’re automatically updated to the latest features, so you are never behind.
  1. Personalized experiences are what your customers have come to expect. Use the data in your CRM software to evaluate previous correspondence, purchase history and their behavior to give them just that.
  1. Customers want seamless experiences regardless of channel. Consider how you tie all the digital channels you have in your company together in order to provide a single, user-friendly customer experience.

By focusing on these three factors, you will help your organization embrace the new digital landscape, exceed customer expectations and improve the overall customer experience.

Have you started digital transformation journey yet?

P.S. If you enjoyed reading this, you can share it here!

Find out how SuperOffice CRM can support you on your digital transformation journey by signing up to a free personalized demo.

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Comments

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Oriana Rivas

3 years ago

I believe that every business should transform digitally in every way possible, but sometimes they have a hard time adjusting their systems to the always-changing trends and customer expectations. This article has very useful information and a very explicit step by step procedure which businesses can follow to improve their company as a whole before downfall could occur. This will save some companies time and money during the process of becoming better for the customers and their needs.

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Steven MacDonald

3 years ago

That's so true, Oriana. You make a great point!

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ross zoutte

3 years ago

Digital transformation is making a huge difference in our world today. Digital transformation is when something is digitally transmitted to some or something like bank statements, pay checks from work, and other important things. Digital transformation is the new way of living in this day in age.

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Roger Mendes

3 years ago

Digital transformation is highly in demanded and it provides ways to interact with customers in a more digital way. As an online entrepreneur, I understand the benefits of being digital. Big thanks to you, for your blog and your hard work!

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Sam

3 years ago

This article is really helpful and gives some great information about digital transformation.

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Mathew

3 years ago

Digital transformation is the most echoed buzzword across all industries in the last few years. From your article, I understand that digital transformation is a necessity to stay competitive and you need to address it before your competitors do. Otherwise, you'll be out of business! Thanks for tackling this topic!

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John Parker

3 years ago

Everything is transforming towards the digital. We can pay money digitally, through credit card, debit card etc. The recent generation is moving towards digital payment. The process is very secure through the various payment gateway.

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Helena harathi

2 years ago

Interesting article on digital transformation. It's very useful for me and for newcomers in this field. Thank you!

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Komal Lopez

2 years ago

Hi Jennifer, Digital Transformation is driving customer experience in many ways. Over the years, enterprises of all shapes and sizes have been working towards enhancing customer/user experience by improving the performance of the device or of the application on the device. Digital Transformation makes performance validation all the more critical.

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Sonia Mary

2 years ago

Nice article! Thanks for sharing the information on how to succeed with digital transformation!

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Bill Watchulonis

2 years ago

What a well-researched article Jennifer. The facts are compelling, these numbers should be brought to the attention of all businesses who want to succeed in the new digital forefront.

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Honnig

2 years ago

Thank you so much for sharing this good article with us. Your tips are very understandable for people. it has very good knowledge for us about digital transformation. These very useful tips for those students who want to became an engineer or who has interest in science or technology. Thank you so much for sharing.

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Helena Harathi

2 years ago

Great article! This piece really explains the need for digital transformation in every business. Very useful!

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Sonia Mary

2 years ago

Nice article! Thanks for sharing this information about digital transformation.

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Erica Fernandes

2 years ago

Good definition of digital transformation. It's all about making the business processes digitalized. As you mentioned, it is necessary for companies to implement digital transformation if they have not done it yet. Some companies have implemented digital transformation in their business successfully and are also providing digital transformation solutions for the ones who need it.

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Harathi

2 years ago

Wonderful article on digital transformation and how to drive customer experience!

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Seuli

2 years ago

As always a great article from SuperOffice. Thank you!

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likha

2 years ago

Good article! Digital transformation is a great strategy to interact with the customers to know their issues on the product or the service they providing.

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Angel Bogart

2 years ago

It's really cool that you explained how custom enterprise transformation services enable traditional organizations to dynamically engage clients and meet their expectations through seamless customer service. This is precisely why my dad would want his downtown cultural enterprise to go live on the web as well as onsite to consistently engage them to participate and take part in his effort to promote Native American culture through the support of education- and culture-related startups, a heritage museum, and community-driven artisanal boutiques. By getting enterprise transformers on board, he'd surely be able to work directly from the cloud to manage big data efficiently while he focuses on intensive client-community activation.

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Susheel Leion

2 years ago

Thanks for sharing this post on digital transformation. I especially liked the tip on personalized customer experiences!

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Susheel Leion

2 years ago

Thanks for this post! I love the idea of a Digitally Conscious Customer.

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marie

2 years ago

The digital transformation has literally changed the entire facet of the business operation and allowed the entrepreneurs to accelerate with digitalized technology and offer enhanced customer acquisition and retention. This streamlining technology is applicable to all the various areas of business.

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Dennis Sanchez

2 years ago

I like that you talked about how customers want to be treated as individuals and are more than just a number. Thank you!

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Williyam H.

2 years ago

Good article on Digital Transformation. Thanks for Sharing.

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Sarfarazm

2 years ago

Digital transformation is both an end result and an ongoing process. One has to make the initial move, and must continue to evolve or be forced out. There is no quick fix for digital transformation. When one sits down with their team to discuss their company's digital future, think about the near future, but also the long-term goals of their company. To maintain relevancy, one will need to implement digital solutions that keep their company moving forward into the digital era and not standing still or moving backwards.

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Karishma P

2 years ago

Thanks Jennifer for sharing such an insightful article on digital transformation!

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Alfred Biosah

2 years ago

Great article! Entrepreneurs who have embraced digital technology have found that it not only enhances and simplifies processes, but also reduces the cost of doing business. Thanks a million, Jennifer!

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Moiz Ali

one year ago

Great Article! Digital transformation really changes the companies environment. It is beneficial for a company and for its customers too. It's really good how you explained it.

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Fahad

one year ago

Nice work Jennifer! Digital transformation is significantly important for B2B and B2C markets and the most interesting point in this article is about "customer personalized interactions" and "it is customer who is driving digital transformation, not the companies". It's very common for many non-tech professionals to believe that it is business who wants to adopt digital transformation to update themselves for the future goals but at the same time, actually it is a businesses needs where they can perform significantly well in adopting the digital transformation.

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J. Corbett

one year ago

Digital Transformation helps the customers to share their experience digitally.

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Sophia Bronte

one year ago

Informative article on digital transformation. Thank you!

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Nishi

one year ago

Nice article Jennifer! I agree that to enable digital transformation in any organization, an agile, flexible IT environment is required. Technologies like cloud, Big Data, IoT, AI help business in this journey and it's important that they have a workforce digital transformation ready to adapt these technologies in various business processes.

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James Maddison

one year ago

Well written blog post. Digital Transformation is the way forward. In the time of crisis we are, organizations who are quick to adapt will win. Customers are the most important of any business and with increasing competition, it is important that businesses up their game in customer engagement.

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Shyam

one year ago

Quick adoption of digital methods to reach out and connect with customers is key in today's situation. Organizations that adopt digital transformation quickly will survive and others will become irrelevant. Very nice article. Thank you.

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Mark D.

one year ago

Very nice article on digital transformation. Thank you!

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Bridget S.

one year ago

Good article on Digital Transformation. Thank you!

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Anurag S.

one year ago

Thanks for the sharing this great post on digital transformation!

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G. Advaiya

one year ago

Great to read. Thanks for sharing this post on digital transformation.

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Ed. Thorn

one year ago

Nice post, really loved reading your tips on how to embrace digital transformation. Thank you for sharing.

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Lisa Pinto

one year ago

In order to leverage your business, digitalization is the best option to come back from the legacy methods. Cloud adoption is the best option for one to meet customer demands.

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Tyler H.

one year ago

Every business is going through a digital transformation. This article shows how important it is!

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Drishti Shah

one year ago

Digital transformation integrates technology into all areas of an organization’s business or mission. Its fundamental purpose is to create and deliver innovative and industry-changing products and services to a global customer base. This outcome requires the seamless two-way flow of data and information between internal business processes and external processes that interact with customers, business partners and the relevant industry ecosystem.

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Charles Wattson

11 months ago

Digital transformation is vital for organizations that need to develop, advance and be more effective than their rivals. Let's face it, nowadays client desires are sky-scratching and without satisfying them your business won't flourish or might we venture to state, even endure!

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Mike

11 months ago

Great tips on digital transformation.

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Jack Simon

11 months ago

Awesome. I have never read an article on digital transformation as good as this. Thank you for sharing!

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William Hruska

11 months ago

Nice article on digital transformation. Thank you, Jennifer!

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Karen

10 months ago

Great information, Thanks for sharing this piece on digital transformation.

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Jerry Gandy

10 months ago

Nice post,Thanks for sharing this information about digital transformation.

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Deep Das

9 months ago

Thanks for providing such valuable resources. This helped me in gaining a better understanding of digital transformation.

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Seethalakshmi

9 months ago

Great article and easier to understand on the topic of digital transformation. Thank you for sharing this.

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Mike Cowell

8 months ago

Thanks for sharing this wonderful topic , digital transformation is also a cultural change that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure.

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BizXL Solutions Inc

7 months ago

Thanks for sharing this informative blog with us. It contains lots of information about digital transformative which is very useful. Keep sharing!!

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Anishka

7 months ago

Nice article. Liked the focus on - a seamless multi-channel experience.

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Seethalakshmi

6 months ago

Great share, Thanks for providing such an amazing informative blog about digital transformation services.

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