Digital Transformation: Why the Rush?
By Lisa Sutrick, Managing Director, Communicate Solutions, Pitney Bowes
Let’s take a step back, first. What is Digital Transformation? Is it developing a mobile-first strategy? Social media? Video? Delivering a digital self-service experience that exceeds your customers’ expectations?
Really, the answer is: all of the above.
Digital Transformation used to be driven by efficiency. How do we reduce paper? How do we improve productivity by automating workflows? How do we avoid calls to the call centre with a self-service website?
Today, Digital Transformation is driven by the customer experience. How can we demonstrate we know our customers? How can we make every experience personalised for each customer? How we can deliver relevant and consistent experiences at all touchpoints, including mobile, web and video?
Why the rush for Digital Transformation? Because, frankly, you can’t succeed without it.
Digital Transformation Means a Better CX
Digital Transformation is a pretty broad umbrella term, but its effects are anything but. At its core, Digital Transformation is about personalisation; in other words, tailoring a customer’s experience with your business to meet their unique needs and interests.
That can manifest itself in any number of ways. Digital self-service is one. This includes a complete transaction history of bills, claims, returns, etc., along with interactive online billing, personal analytics and payment options aligned to their preference. All of this demonstrates a level of familiarity that makes it not only easier for customers to find or buy what they want, but also makes them likely to keep returning to your site. Internalising a customer’s past interests and preferences, and tailoring their experience around them, in turn makes the customer feel valued.
Interactive personalised video is another key pillar of this. During onboarding, for instance, video can be used to deliver interaction points that drive customers to specific and helpful calls to action. Consider insurance as an example, where some of these calls to action might be understanding certain policy benefits, how to use them and how to file a claim. Interactive personalised video anticipates these queries and provides them to the customer from the start.
There’s more to Digital Transformation than just these two: maintaining a robust social media presence, a mobile-first strategy that accommodates buyers’ mobile needs, physical assets that can be leveraged into digital ones (like QR codes) and so on. But, the common thread through all of these is the customer experience. You have to know your customer: not just what they buy, but the context surrounding that purchase, like their location or intent, and the recommendation engine that personalizes their experience and makes it relevant to them.
The reason why Digital Transformation has to be top of mind for CEOs is because the components that make up Digital Transformation are exactly what drive customer engagement. A more personalized CX means more engaged customers, and with that comes maximized customer lifetime value. That’s not just great for the customers, it’s great for you, too. The more customers are engaged, the more they’re likely to return to your business. That repeat business, in turn, boosts revenue and bolsters your standing among your competitors even further.
The Tip of the Iceberg
Of course, if it were all that easy, every brand would be a major global success, and clearly that isn’t the case. Digital Transformation might be a recipe for success, but it’s a recipe that’s easy to fumble if you don’t implement the right solutions in the right way. And, over the coming weeks, we’ll be exploring the components of a successful, effective Digital Transformation strategy – the ingredients of the recipe, if you will – in greater detail.
But, everyone has to start somewhere, and if your business is already dragging its feet in embracing a digital, tech-driven, mobile-first future, then you know what step one has to be.
More on step two coming soon.