Last updated on September 6, 2023
Today, businesses must continually evolve to address the needs of their customers. Embracing new technology solutions and digitizing customer experience has become a crucial part of this evolution. It is no longer a competitive advantage but a necessity.
If you’re wondering how to get started with your digital transformation and what aspects to prioritize, this article is the perfect starting point!
The term digital transformation refers to integrating digital technology into all aspects of a business. The goal is to change how you operate and deliver value to your customers. As part of the change, organizations need to challenge the status quo, experiment, and of course, become comfortable with failure. Sometimes this means getting rid of long-standing business processes that companies were built on in favor of newer, still-developing ones.
Digital transformation has emerged as a critical factor in the evolution of business models, with customer experience at the forefront. Companies must be able to adapt to a dynamic market environment in order to stay competitive and retain customers.
There are many studies that highlight consumers’ rising expectations regarding service quality. For instance, according to Salesforce, 57% of users prefer online communication channels, while 83% expect immediate assistance when contacting a company. Moreover, the same source says that 56% of consumers anticipate entirely personalized offers.
In order to meet these demands, you have to adopt and implement innovative technological solutions that cater to your client’s needs and preferences, ensuring a seamless and satisfying digital cx.
Before embarking on your digital transformation journey, you first need to confirm whether your customers genuinely need it and then identify the most effective approach for implementation. Start by focusing on areas where digital solutions bring the most significant benefits and drive a successful transformation.
Understand your customers’ pain points
To enhance your digital customer experience strategy, you should begin by collecting and analyzing customer experience. This is a crucial step that will enable you to make informed business decisions later on, tailoring your products and services to better meet customer needs.
Decide which processes need to be digitized
Digitizing an enterprise is a significant task, but you don’t have to tackle it all at once. We recommend going about it using the small-steps method and focusing on the processes that require digitization the most.
Research digital solutions
You don’t need to do everything yourself or reinvent the wheel. Nowadays, there are numerous ready-made solutions and systems available for you to implement in your enterprise.
Be prepared to adapt and change
Success in today’s world requires flexibility. When planning your digital transformation, be aware that at any moment, you may need to innovate further.
Constantly monitor changes to track the success of digitizing customer experience
Try to regularly track every individual task to ensure you’re moving in the right direction. For this purpose, you can use key performance indicators (KPIs) to measure the success of the progress of your digital transformation.
In most of today’s companies, Search Engine Optimization (SEO) plays an important role. With over 200 ranking factors at play, Google continually strives to provide its users with the best results in terms of information quality and customer experience. Google’s Page Experience signals emphasize the importance of various issues, such as loading speed, visitor data security, and mobile-friendliness.
To check your website against these criteria and monitor any changes, you can use a tool like Website Audit Tool by SE Ranking. It allows you to track all your website pages and detect any potential technical issues that could negatively impact website performance or user experience.
If you want to rank high, it’s also a good idea to stay updated on upcoming technologies, such as MUM (Multitask Unified Model). This Google technology is designed to offer the most accurate understanding of videos, images, and texts. MUM aims to comprehend users’ feelings, abstractions, and intentions by thoroughly assessing their queries and analyzing the context of proposed content options.
One of the drivers of digital transformation that can positively impact digital cx is the implementation of artificial intelligence solutions, such as chatbots, into businesses. For example, the CX Trends 2022 report by Zendesk shows that 26% of companies surveyed in 21 countries currently offer AI- and chatbot-guided self-service, with 25% planning to add this capability.
However, in order for the implementation of a chatbot not to backfire, you cannot forget about the human experience. According to Userlike, at least 60% of respondents would prefer to wait in line if it meant they could talk to a human immediately. However, if given the opportunity, more than half of respondents also said they would be willing to initially talk to a chatbot, and be transferred to an agent later. So the conclusion is simple – a chatbot is an excellent option for simple questions, but customers should always have the opportunity to talk to an agent.
One example is Tiobi, a chatbot offered by Vodafone’s mobile network. It provides 24/7 support and helps users with various issues, such as recovering account login credentials and explaining bills and charges. If customers prefer to talk to a human, Tiobi can connect them with the appropriate team member.
Personalization is the key to success today when it comes to digital customer experience. And the digital transformation has made personalization easier to achieve. A Zendesk report indicates that more than 90% of customers are willing to spend more money with companies that offer personalized and streamlined experiences.
However, to meet the expectations of today’s customers, it is no longer enough to simply insert a customer’s name in a cold email. Customers want more, such as unique product recommendations and proactive suggestions. They expect brands to anticipate their needs and provide a tailored experience.
But that’s not all. According to Accenture Interactive’s Pulse Check report, 91% of consumers are likely to shop with brands that recognize them, remember previous transactions, and provide relevant offers and recommendations.
As companies interact with digital customers through various channels, from mobile to social, providing a personalized and seamless customer journey for each customer is becoming increasingly important.
Amazon is a prime example of a company that has mastered personalization. Regardless of the device you use to log in, Amazon delivers offers perfectly tailored to your browsing history (regardless of the device you use to browse), purchases, preferences, and more. You can also view past orders, manage payments, and easily complete orders.
With the aforementioned multi-channel personalization comes another factor: the ability to offer an omnichannel experience. This enables the customer to communicate with the team in their preferred way, whether through self-service or live chat. The critical difference between a multichannel and omnichannel customer experience is data synchronization and continuity, which ensures that communication remains seamless as customers switch between different media. The omnichannel experience contributes to customer satisfaction by allowing the customer to interact with a company on their preferred medium.
However, according to Zendesk, only one-third of companies are omnichannel, which means there are still many opportunities for companies to adopt channels and provide experiences that foster loyalty. It is critical to offer a brand-consistent experience across all channels, as customers expect a consistent look and feel across content and processes, regardless of where they interact with the brand.
A great example of this is Sephora. The leading beauty giant offers a seamless omnichannel experience connecting customers’ online purchases with in-store visits. The company provides various options, such as:
With an account, customers can view item details, virtually try on products using digital software, and add them to a wish list for later purchases through the app. Sephora’s integrated Beauty Insider feature encourages customers to make purchases by simplifying the selection process from their extensive range of products.
Artificial intelligence has been in the spotlight recently for its potential to enhance efficiency. However, its influence on user experience should not be overlooked. AI solutions are becoming vital in improving customer experience during digital transformation.
By harnessing AI capabilities, companies can offer highly personalized experiences tailored to individual customer needs and preferences, thus elevating the overall customer experience. We mentioned AI earlier in this article, and how it’s used to develop chatbots and generate personalized product recommendations.
As AI technology advances, companies can anticipate even more sophisticated features that enrich customer interactions. Beyond communication, AI can optimize various elements of the customer experience across multiple channels.
Regarding customer attitudes towards AI, Salesforce indicates that 69% of customers are open to using AI to enhance their experience. As customers recognize the value of AI, they are becoming more receptive to its potential benefits. It’s crucial to reassure customers that your business employs AI ethically so as to address any concerns and reinforce trust.
A prime example of AI’s impact on the customer experience is the interactive fitting rooms created by American Eagle. These rooms allow customers to scan items they want to try on, explore available inventory, and request different sizes or colors without leaving the room. Store employees receive notifications for customer requests, and the technology can even suggest products based on customer selections. This seamless integration of AI into the retail environment demonstrates how technology can significantly improve customer experience across industries, combining the previously mentioned omnichannel capabilities.
By introducing these fitting rooms, American Eagle is able to effectively alleviate customer frustrations, acquire valuable insights into consumer shopping behaviors, and streamline in-store operations.
Let’s discuss another advanced technology – augmented reality (AR). It combines real-world images with digital elements such as graphics or text overlays to create an interactive experience. As it turns out, AR also provides numerous opportunities to improve the customer experience.
For example, Augmented Reality (AR), which blends digital images with the real world, can greatly improve the shopping experience. Brands can use it to complement customers’ experiences by displaying product information as they shop. By scanning a product with a smart device, customers can access reviews and details, thus streamlining the buying process and helping them find the perfect product or service.
Another popular AR trend is the “try before you buy” experience. In the case of online businesses, customers can test products using an AR version on their computer, effectively eliminating the need to purchase or request a sample physically, only to return it later.
AR has the potential to bring many benefits, such as:
AR technology has significantly impacted online shopping, as demonstrated by the IKEA Place app, which allows customers to preview furniture in their homes through 3D visualizations.
It caters to customers who don’t want to waste time visiting the store to purchase products they may not like and showcases how AR can significantly improve the customer experience.
To ensure your clients are satisfied with your digital products, it’s essential to understand how they interact with them. Understanding your User Interface (UI) can help you with that. A well-designed UI that responds intuitively to user interactions contributes to a positive experience, minimizing friction and increasing conversions. In the digital age, CX touchpoints, such as chatbots and online forms, are crucial in shaping customer perceptions. Thus, it is vital to create a seamless and delightful online experience that meets the needs and expectations of your target audience.
Collecting qualitative feedback through surveys helps identify pain points, such as navigation issues or conversion obstacles. Open-ended questions and qualitative customer feedback give a comprehensive understanding of the digital customer experience. Offering passive feedback options makes it easier to gather feedback from customers without disrupting their experience.
Gathering qualitative and quantitative data will allow you to see the bigger picture. Sample questions may include:
With these questions, you will know how to improve the user experience.
In today’s fast-paced digital landscape, businesses must continually evolve to address the needs of their customers. Embracing innovative technology solutions has become a crucial part of this evolution. It is no longer a competitive advantage but a necessity.
Initiating the digitizing of customer experience is essential for businesses to thrive in today’s competitive environment. If your company prioritizes customer needs and embraces innovative technologies, it will enhance the overall digital customer experience. Remember that the market is still evolving, so you need to be responsive to emerging trends to gain loyal clients and successfully navigate the challenges of the digital age.
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Key Drivers of Successful Customer Experience Digitization Today, businesses must continually evolve to address the needs of their customers. Embracing new technology solutions and digitizing customer experience has become a crucial part of this evolution. It is no longer a competitive advantage but a necessity. If you’re wondering how to get started with your digital […]Read more