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Life As A Digital Journey: The Impact Of Digital Transformation On The Customer Experience

Forbes Business Development Council

Senior Vice President, Global Business Development & Client Success, at Innovecs, a digital transformation tech company. 

Who do modern companies cater to? Despite various characteristics of targeted audiences and demographical metrics, today businesses compete in satisfying a digital customer. Technologically savvy and sophisticated consumers of today live here and now and often want their needs to be met instantaneously. Many consumers were formed in the digital age, with Covid-19-induced circumstances, making them smitten with data volumes. They don't necessarily want to beat around the bush — whether they buy, learn, book or entertain — they need it all done right away. 

Businesses should seek to provide seamless communication across all channels, provide 24/7 support, provide absolute transparency and provide unique experiences. Technology can help tackle these challenges, maintain the high bar and address ever-changing demands. Customer expectations continue to evolve due to digital transformation (DX) — which calls for companies to go the extra mile and to be creative. 

Moving forward, expectations will only rise. Businesses will need to rely on the resources provided by digital tools. Data from Statista shows that between 2020 and 2024 the global investment in digital transformation will almost double. 

Looking into a complex, controversial and emotional customer, company leaders realize the value of integrity, coordination and consistency in interaction. Let's have a look at the changing face of a customer journey and see how it correlates with digital transformation. 

Tech, People And Their Mutual Influence: Then And Now

Back in the day, almost every activity implied a physical presence in shops, stores, institutions and facilities. A good business knew their clients by name as well as by their tastes. Personalized service of the past meant the interaction was over after the client left the shop. Obviously, the human touch was challenged by limited resources and, therefore, was not able to scale as well. Then the telephones came along with call centers and TV shopping. The limitations in terms of scalability and fixed working hours were no longer existent. 

The internet arrived and opened Pandora's box — a digital environment with multiple channels. As platforms mushroomed, customers around the world acquired their voices to speak their minds. From here forward, customers could make or break a business, offering praise and recommendations if they are happy and causing serious reputational damage if they are not. The internet spread from the premises of our homes to various devices. 

Given this, businesses had to embrace omnichannel strategies to meet their clientele everywhere. Multiple touchpoints demanded robust orchestration, which is why AI chatbots, ML and data analytics came to bring coherence and accuracy. 

Covid-19 triggered the adoption of new and hybrid business models, such as ordering methods with curbside delivery. The customer journey changed so much, which affected the ways people buy things as well as products themselves. Buying juice or bread, for instance, transformed into a product delivery that is contactless and subscription-based. The purchase cycle became longer, and people were increasingly relying on digital as it was absorbing businesses one by one. Customers decide how to interact and whether to do it all. 

Moreover, they expect authenticity, personalization and empathy in order to pay back with loyalty. Basically, business leaders are witnessing a new level of meaningful brand-client relationships, where both are thoughtful in achieving mutual value. 

Leveraging data brings the sought-after accuracy and makes those relationships stronger and durable. In the foreseeable future, the customer journey analytics market is expected to reach $26.88 billion by 2026. 

Reasons To Focus

A customer journey consists of millions of granular experiences. Businesses realize that the goal is to make every tiny interaction as seamless as possible. For many executives, CX is a pivotal and decisive factor when it comes to future business performance. 

Focus on the customer journey is a win-win for customers and businesses: With the improvement of customer experience, a company is empowered to boost operational efficiency. Every deviation or roadblock in CX means nothing more than some operational bump. According to AI Multiple, a happy customer brings 2.6 times more revenue, while 32% of customers leave the brand due to one bad experience. Customer experience is, and will remain, a success differentiator and a competitive advantage. 

As per Microsoft, a staggering 95% of customer interactions will be backed by AI algorithms by 2025. Artificial intelligence, natural language programming and predictive analytics will become the spine of superb customer service even if the human input is scarce and the information is unstructured. 

DX: Transforming Around The Journey

We have to rethink the concept of journey. The word "journey" implies reaching some destination. In the case of a business-client interaction, the relationship begins long before the purchase itself and involves multiple sub-journeys. These include evaluating the products/services, resolving some issues or a request for help with a personal account. It implies sharing values and sustaining mutual interest. Therefore, the relationship is nurtured and maintained long after the purchase is made. Every step on the digital customer's way is varied in specifics and intent — each requiring alignment. 

For digital transformation to be focused on the customer journey, a business should define the relevant journeys, prioritize the key ones, draw the forecasted outcomes and juxtapose them with the business strategy. Journeys that are of high priority will demand talented teams to devise initiatives. It is essential to prioritize the transformation outcomes and balance risk with reward. Depending on the highest possible return at a certain point in time, businesses must prioritize between speed, insights, agility and security. 

Dealing with automation of any sort, analysis and security underlines the importance of staff training and education. Digital transformation can fail not only without proper strategy and execution but simply because the team is resistant to change or doesn't understand the purpose of it. DX requires being pragmatic about corporate priorities, choosing partners and deploying the ecosystem's resources. 


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