Close

Customer experience and
digital transformation defined

By David Earlam | April 2021

Customer experience (CX) and digital transformation (DX) – two heavily discussed trends of recent years, they have only come further to the fore during the course of 2020 and the COVID-19 pandemic.


Attracting vast amounts of attention from organizations striving to innovate, CX and DX have become buzzwords in recent times; buzzwords that, on the face of them at least, don’t mean all that much to the layman.


So, what is customer experience? And what does digital transformation mean?


It is easy to see why such questions might be asked. And indeed, there will be various answers depending on who is providing the answer.


In our white paper, Digitally transformed customer experience: The technology and the human, we define these terms as follows:

Customer experience (CX)

Customer experience, or CX, is the product of interactions between a company and a customer. In other words, it forms the perceptions customers have of an organization.

Why is it important to manage these perceptions?


For companies to retain customers, they need to leave a positive impression. A seamless customer experience will create positive memories, and positive memories will drive customer loyalty, brand advocacy and sustained growth.


Don’t just take our word for it – the statistics speak for themselves:

76% of consumers expect companies to understand their needs and expectations
• Experience-led companies have 1.6 times higher customer satisfaction ratings
• Experience-led companies have 1.9 times higher average order values
Two-thirds of a company’s competitive edge is derived from customer experience
• Companies earning $1 billion a year could earn an additional $700 million over three years by investing in customer experience

Why is it important to manage these perceptions?


For companies to retain customers, they need to leave a positive impression. A seamless customer experience will create positive memories, and positive memories will drive customer loyalty, brand advocacy and sustained growth.


Don’t just take our word for it – the statistics speak for themselves:


76% of consumers expect companies to understand their needs and expectations

• Experience-led companies have 1.6 times higher customer satisfaction ratings
• Experience-led companies have 1.9 times higher average order values
Two-thirds of a company’s competitive edge is derived from customer experience
• Companies earning $1 billion a year could earn an additional $700 million over three years by investing in customer experience

It may come as no surprise, therefore, that customer experience and customer satisfaction are the leading influences igniting almost half of all companies’ digital transformation journeys (according to PwC).


Customer expectations are only going in one direction – up. In order to reap some of the possible rewards mentioned above, businesses need to pay attention. An unmatched customer experience must be delivered, and technologies must be embraced, in order to keep pace with this shifting dynamic.

Digital transformation (DX)

This is where digital transformation comes in.


Digital transformation, or DX, refers to a change in the use of technology, people and processes to improve business performance, usually catalyzed by new opportunities, revenue streams or changes in customer expectations.


There is no one set text for this. A marketing organization’s digital transformation will look entirely different to a manufacturer’s journey, for example. It simply defines the principle of leveraging innovative technologies to disrupt and enhance operating models.

Here are just a few reasons why it’s worth considering digitally transforming:

• Executives say the top benefits of digital transformation are improved operational efficiency (40%), faster time to market (36%) and the ability to meet customer expectations (35%)
• A CX-focused digital transformation can generate a 20-30% increase in customer satisfaction
• A CX-focused digital transformation can generate economic gains of between 20% and 50%
$2.1 trillion will be spent on digital transformation initiatives in 2021

Thankfully, digitally transforming is not as scary as it might first sound.


First, it is an evolving and gradual process. The aim is not to flip a business upside down overnight. It is a journey that entails a series of changes driven by a desire to rethink and improve culturally.

Here are just a few reasons why it’s worth considering digitally transforming:

• Executives say the top benefits of digital transformation are improved operational efficiency (40%), faster time to market (36%) and the ability to meet customer expectations (35%)
• A CX-focused digital transformation can generate a 20-30% increase in customer satisfaction
• A CX-focused digital transformation can generate economic gains of between 20% and 50%
$2.1 trillion will be spent on digital transformation initiatives in 2021

Thankfully, digitally transforming is not as scary as it might first sound.


First, it is an evolving and gradual process. The aim is not to flip a business upside down overnight. It is a journey that entails a series of changes driven by a desire to rethink and improve culturally.

Second, many of the technologies available that offer value to businesses are tried and tested. Digitally transforming is not a case of building your own tools from scratch – many are readymade, proven, and easy to implement.


Digitally transforming, therefore, should not be viewed as a daunting prospect. The more difficult part is identifying and understanding where to focus your efforts – and this is where we circle back to CX.


Customer experience lies at the heart of many successful businesses and so it should,
ultimately, lie at the heart of digital transformation.

Second, many of the technologies available that offer value to businesses are tried and tested. Digitally transforming is not a case of building your own tools from scratch – many are readymade, proven, and easy to implement.


Digitally transforming, therefore, should not be viewed as a daunting prospect. The more difficult part is identifying and understanding where to focus your efforts – and this is where we circle back to CX.


Customer experience lies at the heart of many successful businesses and so it should, ultimately, lie at the heart of digital transformation.

Latest Ebook

Digitally Transformed Customer
Experience. The technology and
the human:

How to master multichannel customer service for
an improved experience and customer retention

How to master multichannel customer service for an improved experience and customer retention

Share this post

Share on linkedin
Share on facebook
Share on email
Share on print