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The Importance of Customer Experience in Digital Transformation: Why It’s Time To Rethink Strategy

Customer experience (CX) is the new competitive battleground in digital transformation. This article discusses the importance of CX in digital transformation, why it's necessary to change strategy and what elements make up an effective CX strategy.

Customer experience (CX) is the new competitive battleground in digital transformation. In order to thrive and maintain a competitive edge, organizations are required to rethink their customer experience strategy and prioritize CX initiatives. The key is to focus on organizational change and frequently move towards automation as well as self service.

This article will discuss the importance of CX in digital transformation, why it's necessary to change strategy and what elements make up an effective CX strategy.

Understanding The Importance of CX in Digital Transformation

According to a recent report from IBM, digital transformation has become top-of-mind for several businesses. Since 2016, mentions of digital transformation have increased 120% in earnings calls of U.S. public companies. In addition, 85% of organizations now manage their workloads on multiple clouds creating space for scalability, efficiency and sustainability.

With the adoption of digital transformation, the enhancement and innovation of customer experiences becomes more attainable, streamlined and impactful.

Digital Considerations for the Omnichannel World

As customers begin to interact with companies through more channels, such as the web and social media; their expectations of brands are also changing. Sure, a company could focus on providing customer support via phone, but if the goal is to be a digitally engaged brand, an omnichannel approach that’s inclusive of app, chat and other self-service options should be on the digital transformation roadmap.

Omnichannel In Action:
One of the best examples of a brand utilizing an omnichannel approach is Starbucks. With presence across all platforms and a loyalty program app, it showcases how consistency and connection are what its consumers crave. Designed to encourage self-service, Starbucks’s app makes it simple to add funds in multiple ways, collect ‘stars’ and use the app repeatedly.

Digital Considerations for the Remote World

More and more companies are seeking the flexibility to work remotely with their clients. With that comes digital obstacles that must be addressed not only on a local level, but on a company level.

To be able to work productively in an environment that has the potential to be challenging for certain tasks, recognizing the importance of digital infrastructure is crucial. That means making sure clients and employees have the right devices, adequate bandwidth, and digital tools in place.

In the end, if clients and companies alike have access to the right tools, digital transformation has a better chance to flourish.

Rethinking a Digital Transformation Strategy

Customers are now digitally native and conscious. They expect consistency across channels, personalization, security, speed and flexibility. To best inform a digital transformation strategy, companies must revisit the customer journey and begin reevaluating by asking:

  1. What tools does the company currently use? Which are working well? Which aren't working?
  2. What business changes have happened in the past year?
  3. How & where have these business changes impacted customers in the journey? Has the impact been positive or negative?
  4. Is there feedback from customers about these changes?
  5. Is there a way to gather more feedback to better inform digital transformation?
  6. What tools will support customers long-term?
  7. What criteria will the company use to determine which tools to use?

In order to progress and develop a digital transformation initiative, companies must recognize its current processes, align on customer feedback management as well as determine the tool criteria necessary to make a sound business decision. By doing so, digital transformation can be approached holistically and with the end user in mind.

Creating a Compelling and Effective CX Strategy

Companies on the path to digital transformation cannot lose sight of their overall CX strategy. Unless they're able to create a compelling and effective customer experience strategy while transforming functionality and capabilities, all of their efforts might be for naught. But how can companies and brands ensure that customers are satisfied with their experiences?

Companies on the path to digital transformation cannot lose sight of their overall CX strategy.

Personalization In Customer Experience

Based on Accenture's The Retail Experience Reimagined, 91% of consumers are more likely to shop with brands who recognize, remember, and provide relevant offers and recommendations. To satisfy customers and remain competitive, it's imperative that companies consistently personalize experiences.

Now, personalization can come in a variety of flavors, but one of the most seamless ways to provide impact is by integrating personalization through customer support.

By prioritizing the accessibility of customer behavior data via digital transformation that's inclusive of past engagements such as website browsing or transactions, CSRs are able to offer timely, relevant support.

However, it's not just the immediate customer interactions that can and need to be personalized. It is crucial to recognize how all other touchpoints are influencing overall customer experience and prioritize an omnichannel contact center strategy.

Measuring the Customer Experience

Measuring customer experiences is no new feat in outsourcing. With SLAs and KPIs constantly being monitored, outsourcing customer support is a powerful way to measure customer experience success.

With more tools now available for digital transformation, customer satisfaction can be gauged through customer feedback or sentiment analysis, among other things.

Just remember that a lack of documentation or lack of measure is the enemy in CX management. In other words, customer satisfaction can't be tracked if it's not being documented or measured. It needs to be a conscious effort by all parties that CX is key in digital transformation and CX must be measurable for success.

A lack of documentation or lack of measure is the enemy in CX management. In other words, customer satisfaction can't be tracked if it's not being documented or measured. It needs to be a conscious effort by all parties that CX is key in digital transformation and CX must be measurable for success.

The Digital Transformation Era

A new era of digital transformation is upon us, and the customer experience will be a key factor in deciding which companies thrive. If companies want to keep up with competitors or even surpass them, the time to rethink CX strategy is alongside digital transformation. With so many elements that can make a company’s customer experience successful, there are more opportunities to find the perfect balance.