This is not the first time that we have witnessed the convergence of disciplines that until recently might have seemed unrelated, but which form part of BRAINTRUST's DNA. We are talking, for example, about customer experience, data management, and the ubiquitous digital transformation. A new study confirms this trend, highlighting the close relationship between these areas. It is signed by Techaisle and is particularly valuable as it addresses the reality of the "great forgotten" in studies and research on market trends, which are none other than medium-sized companies, so necessary for the daily functioning of the economy.
With a study sample of nearly 900 companies surveyed, the firm draws attention to the fact that the proper management of user and customer data has an undeniable impact on sales, and that this management can only be successful if the steps involved in proper digital transformation have been correctly addressed. These steps, in turn, have more to do with a comprehensive understanding of the environment in which the company operates than with the mass adoption of technologies. It is not a question of embracing the faith of automation, but of using its power to generate customer experiences that drive the business forward.
Within the Customer Experience, there is a rising value that has to do with regulations that, in one way or another, seek to make their way into all legislation (whether rightly or wrongly, that is a matter for another discussion): privacy, intimacy, and trade in personal data. The Techaisle study uses an unconventional but completely graphic figure: the so-calledBaked Alaska, which is nothing more than ice cream that comes out of the oven... without melting. Using customer data without compromising their privacy is like aBaked Alaska, say the authors: a delicious promise through a mysterious process. Magic, in the eyes of the uninitiated.
Data must be successfully integrated, and this must be done with customers in mind (not "against" customers, but "in their favor"). Hence, four necessary milestones have been identified along this path:
1) Conversion of manual and "artisanal" records into digital data and processes.
2) Process automation and use of information to achieve better business results.
3) Ensure customer privacy and take advantage of it, as well as its protection and defense.
4) Use all theinsights gained from the previous steps to innovate in products and/or services.
Four stages for which there is still a long way to go before full deployment, ergo also business and collaboration opportunities for consulting firms withexpertise in the field. According to the survey data, 4 out of 10 companies (41%) believe that digital technologies affect "all aspects of the business and are a fundamental part of organizational strategy," and more than a third (34%) consider that "digital transformation is key to customer intimacy."
Data from internal systems, social media, remote sensors, third-party services, or combinations of these elements generate "operating parameters" that, when used correctly, lead to increased business. According to the responses analyzed, improvements of 21% in additional sales, 20% in brand image, and 19% in customer satisfaction are anticipated.
"DX-enabled organizations generate more revenue from cross-selling and/or upselling; they have greater customer loyalty; they can open new markets and introduce new products and services faster and with better recovery periods. And they do so through customer intimacy: by better understanding what their customers want and need, and by being agile in responding to these desires and needs," states the executive summary of the study.
The path is not without obstacles, as this level of transformation is not always compatible with the usual tasks in an office. Data is sometimes difficult to collect and transform into useful information, those responsible for this task may be influenced by subjective criteria, and customer expectations themselves are volatile and can be altered by external, or even internal, factors that are difficult to control. Research shows that, as a result, some of the functions that are most important to customer intimacy are also the least prepared for DX: less than 40% of medium-sized companies consider marketing, customer support, and (especially) sales to be "completely" or "significantly" digitized.
The study includes striking observations, such as the famous quote from Macy's founder John Wanamaker, who said, "Half the money I spend on advertising is wasted; the trouble is I don't know which half." This was later expanded upon in an article in Forbes magazine, which stated that "Wanamaker was wrong: the vast majority of advertising is wasted." Perhaps with proper data management, there would be accurate answers and measurable variables.
It's not just about having technology within an organization. It's about being able to link technology to front-line functions within the company. And this, in turn, requires understanding "how to develop DX (Digital Transformation) technical skills and how to integrate them into the organization." So, in line with the much-talked-aboutcustomer journey, we should also talk about anIT systems journey that is not "a matter of magical alchemy involving unlikely ingredients with an attractive halo." It is the end result of a roadmap that begins with the digitization of data and processes, progresses through connected systems that encourage and support fact-based customer service, and results in an organizational capacity to understand and respond to customer needs.
Photo byNick KarvounisonUnsplash
