Why Digital Transformation in Customer Experience is so Important

Transforming customer experience (CX) requires a fundamental change to business models and thinking. It can’t be done half-heartedly, since effective CX needs a top-down alignment of connected technology, people and processes.

In other words, it takes real action and real investment, and that can be challenging.

But it’s essential.

Customer journeys and lifecycles are more complex than ever. Digital disruptors are building their propositions based on their heightened ability to understand and adapt to them, delivering more personalised services and communications, at the right moments, to maximise revenue.

“Customer experience is an excellent starting point for a digital transformation because it places the emphasis on creating a happy customer and will also solve a lot of inherent inefficiencies.”

Fransje van der Marel, McKinsey

Traditional organisations must catch up

All but the newest disruptors in any industry must undergo some form of digital transformation customer experience which is differentiated enough to support long-term, sustainable growth. Whether it’s investing in automated ERPs to streamline internal workflows, or using data better to boost revenue growth, you need strategic focus to ensure obstacles don’t impede progress.

Successful digital transformations in customer experience rely on a well-articulated vision and clear targets.[1] This itself is difficult to achieve, particularly when leaders are busy handling the day-to-day running of operations, trying to provide accurate reporting and making mission-critical decisions. Economic conditions, as well as the prevailing impact of the pandemic, mean many businesses feel their time is better spent on guaranteeing survival than on future-focused projects. It can be hard to prioritise technological investments in the face of these external pressures.

What is digital transformation in customer experience (CX)?

Digital transformation in customer experience is the reimagining of the customer journey through the optimisation and integration of digital technologies to fundamentally change how a business operates and the value it offers to its customers.

Have you weighed up the costs of investment vs inaction?

Transformation projects come with some undeniable risks. Decision-makers understandably don’t want to be burdened with a legacy of excessive costs, delays, downtime or failure to realise their project goals. Doing nothing and relying on the status quo can be attractive to a risk-averse organisation.

But passivity on CX represents its own risks: those of reduced competitive advantage, missed revenue, inability to retain or attract talent and stalled growth. Delaying investment has a cost that is just as real as the spend required to transform it.  The longer you delay, the further behind you leave your business, risking long term customer churn, brand perception challenges and vulnerability to disruption by savvy digital competitors.

Every day at Xpedition we work closely with businesses and leaders who are wrestling with the challenge of how to take significant, actionable steps towards improving experiences. Many simply don’t know where to start, or how to prioritise different steps.