The Digital Transformation has been structured in three key areas: (i) Customer Experience, (ii) Operational Processes and (iii) Business Models. In this new blogpost, we'll highlight some experiences regarding the key area number one: “Customer Experience”.
As far as Digital Transformation is concerned, precisely 157 executives (such as CEOs, line of business managers, marketing heads, COOs or IT and technology leaders) in 50 large companies (typically $1 billion or more in annual sales) had been interviewed to find out the clear patterns on this matter. The analysis of the interviews shows clear patterns.
As we have commented before, executives are digitally transforming three key areas of their enterprises: i) Customer Experience; ii) Operational Processes and iii) Business Models.
In this new blogpost, we'll highlight some experiences regarding the key area number one: “Customer Experience”.
How to digitally transform Customer Experience
The three major building blocks with which companies are digitally transforming Customer Experience are Customer Understanding, Top-line Growth and Customer Touch Points.
1.1. Customer Understanding
Companies are starting to take advantage of previous investments in systems to gain an in-depth understanding of specific geographies and market segments.
Some are exploring social media to understand what makes customers happy - and what leads to customer dissatisfaction. In addition, companies are learning to promote their brands more effectively through digital media. Companies are also building new online communities to advise and build loyalty with clients in medical, real estate or financial services products; others are building products that improve branding in lifestyle communities.
Many organizations are building analytics capability to understand customers in more detail: some insurance companies, for example, are improving their portfolios and cost structures through analytics-based underwriting and pricing; other companies are conducting analytics-based experiments to drive customer behavior. In one case, a restaurant company is actively conducting experiments in pricing and promotion across a set of franchised stores. The experiment dynamically adjusts product prices in response to demand, weather, inventory levels and proximity to closing time.
1.2. Top-Line Growth
Companies are using technology to enhance in-person sales conversations. For example, financial services companies are using tablet-based presentations instead of paper-based slide decks to make sales pitches; insurance firms are introducing mobile tools to help sales people and customers engage in analytics-based planning; a medical device sales force is replacing in-person interactions with digital interactions - when visiting a doctor’s office, a salesperson leaves an iPad with video and other information on new products. The aim is to get the doctor’s attention - without inconveniencing the physician or impacting busy office schedules - in order to obtain a 10-minute conversation when the salesperson returns to retrieve the iPad.
Better understanding helps businesses to transform the sales experience. Companies are integrating customer purchasing data to provide more personalized sales and customer service or even to offer customized product packages.
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A hospitality company engaged in location-based marketing uses analytics to send personalized mobile coupons to customers as they near a facility; the company can then track uptake in real time; a mortgage company is setting up a CRM strategy to link customers to local real estate references. This system proposes new offers in real time via the Internet. Other businesses are using concept stores as flagships for their digital selling innovations. For instance, a mortgage company offers investors an integrated process combining real estate and bank services with external services — and showcases the overall process in a concept megastore.
Some companies try to make life easier for the customer, simplifying their processes through a digital plug-in. One retailer automatically loads a customer’s last online shopping list into its e-commerce site. This streamlines the shopping process, allowing customers extra time to look at other products. Customers can then decide whether to use home delivery or a drive-through service with a specific pick-up time.
1.3. Customer Touch Points
Customer service can be enhanced significantly by digital initiatives. For example, a bank established a Twitter account to answer client complaints quickly, helping customers to avoid going physically to a branch. This digital initiative also leveraged an expert community, allowing crowdsourcing with several employees and other customers.
Companies with multiple channels to the customer are experiencing pressure to provide an integrated experience. Multichannel services require envisioning and implementing change across customer experience and internal operational processes. Many retailers now offer home shopping with the option to receive products by mail or in a store. However, one retail executive described customers being angry that customer service representatives in a store could not access online order history.
Several companies explored in this survey are offering self-service via digital tools. These tools allow the customer to save time, while saving the company money. Many companies are now offering customer apps to enhance customer touch points. In one hospitality company, smartphone apps are linked to the customer’s profile, enabling integration across SMS, apps and social media efforts; a media company offers apps with geo-localization and augmented reality to help customers find interesting places to visit and provide special offers via vouchers and e-couponing.
During the next coming weeks we're going to explore the other two key areas of Digital Transformation: Operational Processes and Business Models. Stay tuned!
Source: Digital Transformation: A Roadmap for Billion-Dollar Organizations
