Digital transformation has claimed its place in the modern business world, subsequently altering the status of the business landscape for enterprise organizations and SMBs alike. According to IDG’s 2019 State of Digital Business research, 91% of organizations have adopted, or have plans to adopt, a digital-first strategy. With worldwide spending on digital transformation technologies predicted to reach $1.97 trillion in 2022 (IDC), it isn’t a question of whether digital transformation is here to stay. Rather, it’s a question of how IT decision-makers (ITDMs) plan to enhance customer experiences and generate revenue through these innovative technologies.
The Digital-First Foundation
Before considering the connection between customer experience and digital-first strategies, it is important to analyze the digital business foundation of an organization.
It’s not just IT that views digital transformation as a necessary business goal. According to the 2019 State of the CIO research, the CEO’s top priority of IT this year is to lead digital business/digital transformation initiatives. Over the next 12 months, organizations will spend an average of $15.3 million on digital initiatives, and this budget is strategically set. IT decision-makers report that 59% of this budget will be allocated towards technology, and the remaining amount (41%) dedicated to people and skills. With the right focus and financial backing in place, CIOs and their staff are able to effectively support goals and objectives.
Broken down by job title, CIOs and IT executives assist with digital transformation across all transition aspects. These strategies include, but are not limited to, data security/protection strategy, data management strategy, technology needs assessment, determining the metrics of success, and developing a business case/roadmap for the overall digital strategy. Fifty-three percent of IT leaders feel it is crucial to develop a business case/roadmap for overall digital strategy during the implementation period. With a set budget, designated roles, and a strategic structure in place, organizations can create a solid foundation for adopting a successful digital business plan.
Digital Business Creates Stronger Customer Experiences
Sixty-three percent of ITDMs believe an excellent customer experience (as measured by customer satisfaction scores) is the largest indicator of digital business success. Furthermore, 67% also report that creating a better customer experience is their top priority with digital business strategy. So, how exactly are ITDMs shaping experiences? They are employing strategies and tactics such as personalization/contextualization of customer interactions (25%), real-time capture of customer feedback (24%), and omni-channel customer experience strategy (23%).
When considering aspects of the customer experience, ITDMs find that there is always room for growth and improvement. Fifty percent of ITDMs prioritize ongoing communication between the customer and the company, followed by focusing on customer feedback (35%), and assessing the post-sale experience and collecting customer feedback (30%). Research reflects that when a company and their clients’ mindsets are aligned, digital business transformation can be implemented effectively.