Digital transformation is changing organizations’ business models adapting to the new market reality. What’s interesting about this is that it’s not the companies that are driving this change but the 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 the device they have chosen.
Putting the customers first is already at the center of many organizations’ strategy. Thus in order to keep up with this new kind of always-connected customer, today businesses are embracing technology to deliver an unmatched customer experience.
According to a research study, nearly 2/3rd of companies will shift their focus from traditional, offline strategies to more modern digital strategies to improve the customer experience. Moreover it is believed that 34% of companies will completely adopt digital transformation in the nearing years.
What is Digital Transformation?
Digital transformation is the integration of digital technology into all the areas of a business. It results in fundamental changes in how a business operates and the value it delivers to the customers. It is simply the way how a business interacts with its customers and how it provides its customers with a consistent experience whenever and wherever they need it.
The factor that most influences a business’ decision to implement a digital transformation strategy is customer experience and customers is the leading influencer. In fact, the companies that do transform digitally are creating highly engaged customers.
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 a brand to their friends, family and connections.
- Two times more likely to make a purchase of a preferred brand, even when a competitor has a better product or price.
Interestingly, highly engaged customers buy over 90% more frequently, spend 60% more per purchase, and have 3x the annual value as compared to the average customer.
This is a huge revenue opportunity businesses that desire to transform digitally could be taking advantage of. It’s clear that the customer is firmly in the driver’s seat. However, to deliver a better customer experience, the organizations has to firstly understand the needs of the new kind of digital customer.
The New Digitally Conscious Customer
Digital technology has transformed consumer buying habits. Mobile devices, Apps, Machine Learning, Automation and much more allow customers to get what they want and exactly what they need regardless of time and distance barriers.
These new digital technologies have driven a shift in customer expectations, resulting in a new kind of modern buyer. The new opportunities arisen due to modern technologies, customers often rate organizations on their digital customer experience first. Hence transforming digitally first requires the business to rethink how it interacts with its customers.
For B2B i.e. Business to Business sales teams, digital transformation first means to replace cold calling with social selling. Social selling is important because the customers are already active in social media and that’s where the B2B sales team needs to be. Instead of waiting for the customer to reach the team, the team needs to reach out to them, build a relationship and educate them.
For marketing teams, digital first means following a data-driven marketing strategy. They must use digital channels to implement search engine marketing, account-based marketing and email marketing strategies.
For the customer service teams, digital first is not just about being reactive but being proactive to help the customers, who use a wide range of channels to seek out support. Social media, review sites, forums, and communities are now a part of the customer service eco-system.
Getting Started with Digital Transformation
Digital transformation offers organizations an opportunity to understand the modern-day buyer. It engages with the customers and delivers as per their expectations of a multi-channel customer experience. But, why do only some digital transformation efforts succeed while others fail? Well, a business can succeed by embracing these three key elements.
- An agile and flexible IT environment
A technology that can power up digital strategies is fundamental in today’s business world. And the single most important thing that can transform the business world is Cloud Technology. Organizations recognize the need for implementing agile systems believe that cloud technology is critical for digital transformation.
Integrating cloud technology into the business model enables companies to be fast, dynamic and flexible thereby giving organization the ability to test new projects that are cost-effective and low-risk. This allows the organizations to use technology to meet customer demands quicker.
- Personalized customer experiences
Today’s buyers want organizations to treat them as a unique individual, knowing the fact that today organizations know customers’ personal preferences and purchase history.
Many studies claim that nearly 75% of customers admit being more likely to buy a product from a company that:
- Recognizes them by their name
- Knows their purchase history
- Recommends products based on their previous purchases.
A seamless multi-channel experience
Technology has empowered customers to get what and whenever they want, and how they want a particular service. More than half of all consumers now expect a customer service that responds to their needs within one hour. They expect the same response time they get on weekends as on weekdays. This need for instant gratification has forced organizations to remain accessible round the clock. Moreover, today consumers are not tied to a single channel or platform. They browse in-store, shop online, share feedback and ask questions from the support teams on social media networks.
Those companies that can offer immediacy, personalization, and accessibility to their customers will be the most successful and prosperous one’s in the long run.
The Concluding Note
In the rapidly moving, and always connected society, companies are forced to consider implementing a digital transformation strategy, if they haven’t already.
This transformation will truly offer organizations an opportunity to engage the modern buyers, and deliver as per their expectations for a seamless customer experience. So, focus on the important factors which will help your organization embrace the new digital landscape, exceed customer expectations and improve the overall customer experience.
