Maintaining customer engagement requires delivering exciting and personalized customer experiences. From apps that allow customers to purchase coffee without using a wallet, to the ability to order a taxi cab without having to call anyone, customer expectations have indeed forced the evolution of the digital customer experience (DCX). DCX is defined as the product of all digitally enabled interactions between a company and its prospects and customers over the duration of their relationship. What has emerged is a new era of next generation DCX – “DCX 2.0.” Consequently, the bar has been raised, and gaining or losing market share will heavily depend upon proper DCX execution.
Translating Digital Transformation into Profitable Growth
Successful digital transformation centers on building customer intimacy to drive engagement. Superior DCX is the cornerstone for building customer intimacy. The research is clear: Better customer experience drives revenue growth. Companies can build a strong competitive advantage by placing customers at the center of the business model and architecting engagement and servicing systems to deliver desired customer experiences. Understanding what constitutes a better customer experience is the challenge.
Different studies point to different sets of experience attributes that are most important, depending on industry characteristics, the nature of targets, and current customers.
Here, we identify five “universal” attributes that define better customer experiences:
- Identity: Today’s customers are more diverse, more connected, and more powerful than ever before. This makes identification and micro-segmentation a crucial – albeit challenging – task. Moreover, current research indicates that although companies may think they know their customers, 80% of consumers think that brands really don’t know them as individuals.
- Consistency: Even as customer interactions typically occur during a multi-event, multi-channel journey – for example, through retail locations, online, social media, direct mail, phone, etc. – customers expect to receive the same level of service quality throughout. When an inconsistent experience occurs, research shows a substantial 78% of consumers say they abandon an intended purchase because of a poor experience.
- Responsiveness: Expeditious issue resolution has become a standard expectation. 77% of U.S. online adults say that valuing their time is the most important thing a company can do to provide a satisfying experience.
- Convenience: Simplifying the purchase journey for customers is fundamental. According to Corporate Executive Board (CEB) Research, customers are 86% more likely to purchase products from a company that simplifies the purchase journey, and 115% more likely to recommend the brand to others.
- Personalization: 86% of consumers consider personalization as key in their purchasing decisions. Businesses can influence shopping behaviors by delivering relevant messaging and making shopping experiences more personal.
Delivering identity-driven, personalized, consistent, responsive, and convenient customer experiences drives top-line performance in the form of gross sales or revenues. How can this be accomplished cost-effectively? You won’t want to miss our next blog, Great Customer Experience Drives the Top & Bottom Line: 5 Characteristic to Maximize ROI.
For a deeper understanding of digital transformation and how to deliver superior digital customer experience as a business imperative, view CohnReznick’s whitepaper, Digital Customer Engagement: Transforming the Customer Experience Through Continuous Innovation.
Join CohnReznick Advisory’s Technology and Digital Services Practice team, along with 900 of the world’s most innovative retailers and 100 speakers, at the eTail East 2016 Conference from August 15 – 18, 2016 in Boston.
For more information on CohnReznick Advisory’s digital and innovation services, contact:
- Dean Nelson, Principal, National Director, Technology and Digital and Innovation Services
- Paul Gulbin, Managing Director, Digital and Innovation Services
- Stamos Kanellakis, Senior Manager
 Win on the basis of customer experience, Forrester Research;  Global Customer Service Barometer, American Express Research;  Consumer Expectations for Customer Service Don’t Match What Companies Deliver, Forrester Research;  Rethinking Retail, Infosys Research Study