Digital Transformation Age: Putting the Customer First

If you think your business can succeed with customer experience but not digital transformation, think again. These three statistics from a 2019 Digital Trends report tell the story:

  • Companies advanced in customer experience were three times more likely to outperform their peers in surpassing their annual revenue goals.
  • Digital-first companies were 64% more likely to outperform their peers.
  • Companies with a well-integrated technology stack were 131% more likely to outperform their peers.

TM Forum, the industry association driving digital transformation, released the results from its third bi-annual Digital Transformation Tracker (DTT). Read the survey overview here.

In other words, if your business is not taking advantage of technology to improve your customers’ experience, your business is in jeopardy of falling too far behind to capture any market share.

Customer Experience

Companies have always said the customer was first, but in this digital age, customers are defining what it means to be first. One of the most significant changes has been the move to customer experience. Not only do you have to have a quality product, but you also need a quality customer experience. For many shoppers, especially younger shoppers, the shopping experience is as important as the product. In fact, 67% of shoppers are willing to pay more for a product if they have a great customer experience.

Most consumers conduct product research before purchasing, even if they plan on buying the product in a store. They expect the information they need to be available and easily accessible.  It needs to be displayed on a smartphone, tablet, or computer. If the technology doesn’t work smoothly, they move on. And for some consumers, one bad experience is all it takes. They never give a company a second chance.  

Customer experience is like a journey that begins the moment they interact with your company or brand. If the initial experience proves positive, they will continue their journey, which ends in a purchase and a loyal customer. To make that happen, you need technology to gather information on your customers, analyze that data, and identify trends that can keep your company ahead of the curve.

Digital Transformation

If you ignore the customer or fail to keep up with changing trends, your company could go the way of Blockbuster or Borders. Do you even remember those companies?  Blockbuster filed for bankruptcy in 2010 and Borders in 2011. Why? They weren’t ready for the digital transformation that changed their customer base.

Blockbuster  

Blockbuster rented videos. When people began to download videos from the Internet, and on-demand videos became a standard cable offering, Blockbuster failed to respond. Then, the upstart competitor Netflix offered a digital solution. It would mail the videos to the customer, so they didn’t have to go to the store. Today Netflix is valued at around $160 billion; Blockbuster is out of business.

Borders Group

Most major bookstores maintained a music and DVD section at the beginning of the 21st century. When others started cutting down their entertainment sections, Borders did not. They even failed to see the move to online purchases by younger consumers. Although Barnes & Noble wasn’t the most technically savvy, it did come out with its e-reading Nook, digital materials, and online purchase capabilities. Almost ten years after Borders filed for bankruptcy, Barnes & Noble is still in business. In fact, some analysts believe Barnes & Noble may stage a comeback as it re-envisions its stores to offer a better customer experience.

 How prepared are you for a digital transformation that provides a consistent customer experience across multiple platforms? Are you struggling to find a solution that can integrate diverse solutions so they can effectively communicate?  Now is the time to begin your company’s transformation. Contact us to discuss how we can help your company’s digital transformation.

 

TM Forum, the industry association driving digital transformation, released the results from its third bi-annual Digital Transformation Tracker (DTT). Read the survey overview here.

 

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