Impact of Digital Transformation on Enhancing Customer Experiences

  • Published on : September 28, 2023

  • Read Time : 11 min

  • Views : 3.7k


Digital technology has become a prevalent term in the business landscape and it has revealed Digital Transformation Enhancing Customer Experiences. It has transformed the way businesses create ways for remarkable customer experiences following digital transformation.

Digital and multichannel experiences can be integrated into all facets of business operations. This eases the way to interact with customers and affects the overall customer experience.

As per the Gartner latest report, more than 90% of businesses are involved with some form of digital tech initiative. Now, digital technology acts like a demand for increasingly connected, informed, and empowered consumers.

With the help of digital technology, businesses make distinctive individual interactions, improve customer service experiences, and also, build a good understanding of their customers’ demands.

Did You Know? GlobeNewswire Statista shows that the global digital transformation market is expected to grow to $1,009.8 billion by 2025 from $469.8 billion in 2020.

Digitization brings transformation for businesses, that helps to reach new heights in customer experience and get benefits.

How Digital Technology Has Transformed Customer Experience?

Digital technology has changed consumer behaviors. With mobile apps, automation, artificial intelligence and machine learning technology, customers can get what they want and at the time when they need it.

These latest digital technologies have created a huge shift in customer expectations from any business. In the past few years, customers have been continuously connected online and preferring an app-native environment.

Customers are aware of the things in which technology can help. This can be simplified with digital transformation and customer experience journey.

Business opportunities have been increased by using modern technology. Now, customers rate organizations as per the digital customer experience they are getting from them.

Build Relation with Customers Socially

The digital method has replaced the cold calling pattern with social selling. Customers stay active on social media platforms around 150 minutes (about 2 and a half hours) per day. And that is where you should have talked about your business.

You can reach customers on social channels instantly. You don’t need to wait for them to contact you for details or services. Also, you can build friendly relations and help guide them about your service or product offerings.

However, sharing relevant content is a vital portion of the solution to the customer’s problem.

Personalized Customer Experience

One of the most crucial impacts of digital technology on customer experience is its ability to provide personalized interactions.

By taking advantage of data analytics and artificial intelligence, businesses are allowed to make tailored recommendations, marketing campaigns and product overviews that drive revenue growth.

This personalization enhances customer satisfaction and helps gain customer loyalty.

Data-driven Market Strategy

Digital technologies collect meaningful insights and customer data, which helps refine marketing activities for improved digital transformation and customer experience.

Further, the companies can use digital channels to implement email marketing, account marketing, and search engine marketing strategies.

Customers Can Access Products & Services Anytime

Through digital transformation, it becomes possible for customers to access products and services 24*7.

Customers will benefit from convenience and accessibility anytime, anywhere. This is highly suitable for getting online banking, e-commerce and digital entertainment-related services.

Moreover, digital technology benefits customers. Now, customers do not need to stick to traditional business working hours or go to stores to buy.

Eases the Way to Communicate with Customers

The facility of multi-channel engagement helps organizations to communicate with customers, through their preferred online channels.

These channels include live chat, email chat support, social media, or any other way that do effective online customer interaction. This will improve communication as well as help build customers’ trust.

AI-Powered Tool for Customer Support

With technological advancement and strategic shift, AI-powered chatbots and virtual assistants are in use. This has improved the customer support system.

These AI-enabled chatbots can solve customer queries, carry out routine tasks, troubleshoot issues, and provide the right solutions immediately.

It helps in decreasing the time that customers require while waiting for solutions to their problems. Ultimately, it led to rapid problem solutions.

More Satisfying Product Experience for Customers

IoT devices can be integrated with digital platforms. IoT devices assist businesses to monitor product utilization and performance.

Most importantly, the product data can then be used to address specific business issues, give suitable product maintenance tips, and suggest relevant upgrades.

This allows customers to get the benefits of an amazing product experience.

Transparency in Price Helps Build Customer’s Trust

Right strategies for digital transformation and customer experience ease the process of giving product information, price tagging, and receiving customer reviews.

Customers now can research products or services online, before they make any purchases. This helps in building the customer’s trust.

Smart Product Recommendations

The product recommendations on platforms like Flipkart and Amazon are no wonder. Here, digital transformation services provide customers with a personalized shopping experience and help businesses to understand customers better.

These are types of e-commerce businesses that use technology to track what you ordered, returned, or replaced. It provides you with a list of items that you’ve searched for and thus, creates the ultimate shopping experience.

Undeniably, customers’ expectations are continuously changing with the evolution of digital technology. To gain customer experience through digital transformation, it is essential to know about the digital transformation trends.

Top Digital Transformation Trends for Customer Experience

Digital transformation trends in customer experience help businesses gain valuable insights into customer buying habits and customer’s preferences.

Customer Engagement with Voice and Visual Search

Voice-activated devices have been launched that change how customers search for information on search engines. These devices are like Google Lens and Pinterest.

As a result, businesses can optimize content or product listing for visual search, which unlocks new opportunities for customer engagement and sales.

Augmented Reality (AR) and Virtual Reality (VR)

AR and VR technologies are reshaping businesses from diverse verticals. Whether it is a real estate business, retail store, education institution or some entertainment service provider, AR assists in product visualizations and running marketing campaigns.

Besides, VR helps in operating virtual showrooms and doing training simulations.

Data Privacy and Ethics

Businesses must rank data management and transparency with the rising concerns about data privacy and ethics.

The most trusted regulations for data protection such as GDPR and CCPA need companies to acquire explicit consent for data processing as well as data collection.

Every customer expects that business will maintain their data privacy. The businesses focusing on these concerns will gain customers’ trust and credibility.

5G Technology

5G networks have reformed customer experience. 5G networks offer higher data speeds and lower latency, and businesses can offer augmented reality applications, high-quality video streaming, and seamless mobile experiences to their customers.

This gives benefits of engaging customer interaction majorly in healthcare sectors, the gaming industry, and remote collaboration.

However, to stay competitive in the digital world, it’s a crucial step to start with digital transformation.

Let’s dive deep into the elements that will help make your business digitally transformed with unmatched customer experience.

How to Start with Digital Transformation?

Get Buy-In

Businesses should be committed to driving buy-in initiatives forward. It demonstrates how your time and money investment in digital transformation accomplishes your business goals.

In addition to this, it secures necessary resources and overcomes resistance to change.

Technology Support

In digital transformation, data analytics, artificial Intelligence, cloud computing, and IoT are major technology infrastructures.

So, invest in scalable and flexible technology solutions. This will give a flexible and scalable environment to the customers. Additionally, it will also fulfil their technical demands.

Collaboration and Communication

Bring up collaboration and communication across different departments of business.

Digital tools are great for streamlining knowledge sharing among customers as well as reducing the communication gaps between them.

Further, you have to make sure to align every digital strategy with the transformation goals.

Uninterrupted Customer-Centric Approach

To give a seamless digital experience aligned with the business objectives, follow an uninterrupted customer-centric approach and integrate all possible channels that lead to improved conversion.

Take Pilot Projects

Pilot projects are good to start testing new technology and learn digital transformation and customer experience approaches.

However, you should know that while working on pilot projects, businesses will go through different experiments and need to adjust their digital reshaping strategies accordingly.

Final Thoughts

To sum up, the real digital transformation in customer experience occurred with the proliferation of smart devices and the data analytics paradigm. These digitally enabled solutions empower customers with more choices and control.

But getting customer experience with digital transformation is not only about using AI-enabled technologies and tools; it is more about reforming your overall business model to understand customers’ behavior.

The process of digital transformation and customer experience requires careful planning, a promise to revolutionize, and a zeal to transform. Above all, this will have a profound impact on customer experience with digital transformation advancements.

Hence, by following all the above steps and remaining agile, you can position your organization to the next level.

Ready to Start Your Digital Transformation and Customer Experience Process That Drives Innovation?

Codiant works on the latest digital tools, technologies and frameworks that bring real innovation to get customer experience with digital transformation. In addition, we understand the need for digital transformation to improve customer experience and offer digital solutions that meet the necessary consumer expectations.

Ready to turn your digital dreams into reality?

Contact us today!

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