Digital Transformation is pushing organizations to change their business models and adapt to new realities. The digitisation process has brought about a sea of change in how consumers choose to interact and transact with organizations.
Modern business leaders have always experimented with various tools and resources to provide unique offerings in a bid to enhance customer experience and gain a competitive advantage. Two decades ago, nearly all organizations were making extensive use of broad customer segmentation and demographic data analysis to improve their products and services and align them closely with changing consumer expectations. This analysis was also used by companies to group their customer base which served as a key to delivering personalized customer experience.
In the last decade, Amazon was the amongst the first companies to embrace personalization. One can recollect from having browsed the e-commerce website some years ago and seeing recommendations under People who bought this item also bought section. Gradually, Amazon’s recommendation engine grew stronger and smarter, users were shown recommendations like “More books from the Author”, “Top Selling Games/Items” etc. Amazon, as an organization, showcased “How customer experience can be linked to value”. While many factors contribute to the overall success of this e-commerce behemoth, the use of recommendation engine driven by smart algorithms and Artificial Intelligence (AI) is gaining more prominence. A Mckinsey report confirms an astonishing 35% of Amazon’s sales came from such recommendations (1).
Millennials or new most new age consumers want organizations to treat them as an unique individual. They want to be offered with unique products and services that best match their individual needs. According to an Accenture report, about 40% of online consumers abandon their shopping carts due to a great number of choices (2). The same report also suggests that about 75% of the users surveyed prefer to purchase from brands that either Recognize them, Remember them or Recommend them products or services over others who don’t (2).
To put into perspective, the demand for unique seamless customer experience is so strong that it is the most leading factor influencing business leaders’ decision to implement a digital transformation strategy. The availability of vast amounts of data and digital technology allows for personalization on a granular scale not seen before. Brands can look to provide dynamically curate experiences to each individual and context, across marketing, buying, and service interactions. Organizations that have implemented digital transformation strategy have a highly engaged customer base. Additionally, a Gartner report suggests that 56% of CEOs report an increase in profits owing to the implementation of a digital strategy (3).
In that sense, digital customer experience is a huge revenue opportunity that businesses can look to take advantage of. Digital transformation strategy has helped organizations to engage with their buyers, provide them with their offerings in real-time and exceed on consumer experience expectations regardless of the medium, channel or place.