CX is the only thing that counts in digital business
Efficient and simple digital interaction with clients, which is turning into a key competitive advantage, is based on two preconditions: optimization and digitization. Digital transformation is vital for a company to succeed in this time of rapid change and high expectations.
If until recently improved performance efficiency seemed to be the main reason for digitization, the scales are now tipping towards customer experience.
IMD’s study on how companies had managed to navigate their way out of downturn situations in previous global crises has showed that most companies which make it out of the recession need another three years to reach their pre-recession performance, while just under 10% of all companies actually thrive during and after the crisis.
A crisis as an opportunity to grow
The difference between both groups of companies is driven by the mindset. Some enterprises decide to focus on cost-cutting moves, securing liquidity, downsizing and improving efficiency, while others expand on their efforts to grow their market and invest in new assets, business models and market presence.
As clearly shown by the research, the worst option is the combination of employee reduction and asset investment. With this approach, the company is losing its valuable know-how and experience, whilst forcefully introducing changes. On the other hand, the results have shown that the best approach is a combination of measures to improve operational efficiency and investments in market development, new opportunities and capabilities.
Digitization and customer experience are two sides of the same coin
At Mikrocop we understand digitalization as a way to increase efficiency while allowing for a personalized customer experience (CX). The simple digitization of processes and procedures is rarely satisfactory since it only seems to bring further costs and problems. The digital world exists to deliver a digital customer experience, but it cannot exist without digitization.
The key to tapping into the potential of digital business and digital customer experience is to adapt the company’s operations and offer to the new digital reality. However, actions which may have been reasonable or only viable in the paper-based environment can be done differently in the digital landscape, making them more user-friendly and more efficient in terms of performance. The same goes for offer adjustments – to paraphrase the famous quote of designer Frank Chimero, “people ignore products that ignore people’s needs”.
Customer experience is the comparative advantage that cannot be copied
If we want to deliver a remarkable customer experience, process optimization and digitization is not enough. We have to start thinking about connectivity with other IT systems, comprehensive data management and sharing, user-friendly e-signatures, and compliant e-storage. TWe cannot resolve these issues by simply buying new software. The challenge how to connect all components into a uniform digital story is complex but unavoidable. There are no shortcuts to digital transformation, but on the upside, experience shows that the market is quick to recognize and reward our efforts.
Surely, supporting customers with optimized processes is just a part of the puzzle we call CX. Other pieces include organizational culture, leadership and employee commitment, and companies should pay special attention to adapting their offer to the changing expectations and needs of their customers in the digital landscape.
Digitization, much less digital transformation, does not happen on its own
Digital transformation is primarily a business challenge that extends far beyond investment in IT solutions. To succeed at digital transformation, we need to secure the support of the management team to drive the implementation of change, employee commitment and acquisition of the digital skill set. It is necessary to set clear priorities, set up a competent digital team, engage a wide circle of stakeholders in the process and maintain continuous communication with them.
Most importantly, we shold be aware of the relevance and interdepenece of technology, processes, business models and employee actions. The road to digital is hard and riddled with challenges but you don’t need to take it alone.
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