How does customer experience drive digital transformation?

Commonly confused with user experience (UX), customer experience is the broader framework for improving a customer's perception and interactions with a brand. Improving the customer experience has become paramount for many businesses today looking to exceed customer expectations.

As the world moves toward digital delivery and experience, customers expect personalized interactions with their favorite brands. The key to delivering a better customer experience (something that determines the entirety of a company's long-term success with its customers) is digital transformation.

Is brand loyalty dead?

The consumer world has moved from brand loyalty to making purchase decisions based solely on the end-user experience. For example, generations before today bought products and services based on tried and true methods. There was no conventional Internet that displayed a wide variety of options at the click of a button, and the advertising industry was still focused on print and television marketing. It was as simple as walking into a store, buying a product, using that product, continuing to buy it, and becoming a loyal customer for life.

The digital revolution has disrupted all industries, sectors, and geographies. Banks, whose business models rely heavily on loyal customers, have had to constantly adapt strategies to rapidly changing market conditions. The age of the average customer is much younger than before and they are much more likely to leave one bank for another.

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Now that everything is digital and "being everywhere" is a necessity for this generation, it is believed that the concept of staying loyal to one company is dead, as embracing technology becomes the new way to survive changes in the market. Currently, print and television advertising has given way to new methods of attracting customers; first, digitally through the Internet and, now, through mobile applications. The advertising game hasn't changed, just the medium. The social strategy has been adapted to the new on-demand culture of today's world. It is not just the digital transformation of a company's actual products and services that contributes to its success. The most shocking success factor in creating a memorable customer experience today is the digital transformation of these companies in their business models.

The benefits of investing in digital transformation

The concept of providing the best possible customer experience has been at the heart of every business since it began; this is not new. What is new is using digital transformation as a means to achieve a greater customer experience. Without adapting to the needs of the client in the media they prefer, a company loses business. Although this idea is catching on, the vast majority of research indicates that companies are having significant failures to achieve successful digital transformation.

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Companies that invest in digital transformation can expect the following benefits for their organization:

1. Long-term money savings: According to Enterprise CIO, "Optimizing business technology and operations around digital technology means transaction cost savings and increased sales." An investment may be required, but the payoff in money saved will be significant, as automation tends to improve the time associated with completing tasks.
2. Extending current system value: Adopting end-to-end platforms such as an intelligent workflow solution can extend the capabilities of your company's legacy systems. Multiple disparate systems can be connected on one platform, creating a seamless, connected experience that improves processes between each system across the company.
   
3. Competitive advantage in sectors: Digital transformation is the engine of an optimized customer experience. By continuing to prioritize innovation as a means to become more customer-centric, your business will always be in touch with user needs. Staying in touch with user needs greatly increases the likelihood that your company will deliver solutions that solve customer problems, an important step forward from the competition that isn't using digital transformation to their advantage.
4. Increased revenue and reach: A recent MIT report shows that digitally mature companies earn 26% more than their peers. More digitally mature companies can expect to get a higher return on their existing investments, as well as remain ripe for real innovation. Between the adoption of digital processes and the digitization of actual offerings to customers, digital transformation drives more profits and a broader user impact.
5. Optimized customer experience: Digitizing channel delivery leads to a more integrated user experience. For example, automated account management can extend from the branch experience to mobile apps and online banking. The digital transformation of this offer allows all channels to provide a quick and efficient response in all areas.
6. Improving company culture and brand perception: Digital transformation improves the way people work together by automating business processes. Greater efficiency leads to a company culture that achieves more and focuses on productivity. When employees are happy and productive, the public notices it. A stronger brand perception increases a company's sales and credibility.

Digital technology has changed consumer habits. Today's buyer is digitally native, well-versed in applications, and increasingly more tech-savvy than their older counterparts. Since today's consumer wants everything right now, companies must embrace technology as a means to meet that new expectation. Digital transformation can eliminate inefficiency by improving operational processes, allowing companies to innovate and achieve long-term strategic goals. Are you looking to optimize your customer experience strategy to better serve your customers? Learn more about how to digitally transform your company with business process management.