How Digitizing Customer Experience Builds Better Businesses

Maintaining customer engagement is a critical factor of success in today’s globalized and hyper-connected business environment. Modern consumers have more options than ever before for nearly every product or service they use — and each one is as close as the nearest internet-ready device. 

To capture the increasingly divided attention of customers, you aren’t just up against the other players in your specific corner of the market. Effectively, you’re up against every other company in the world. If you want your business to stand out from the competition, you need to deliver experiences that defy consumer expectations and turn fickle customers into loyal patrons. 

When it comes to finding new customers and retaining old ones, digitizing is no longer an option — it’s a necessity. Over the past few years, businesses of all kinds have been steadily shifting from familiar ways of doing business to new digital technologies that promise streamlined processes, enhanced productivity, and elevated customer engagement. 

Why Your Business Needs a Digital Transformation

Giving your company a digital transformation means switching all of your business operations to digital technologies, like cloud networks and automated management systems. According to Statista, global spending on digital transformation hit an estimated $1.6 trillion in 2022. By the end of 2026, that number is expected to total about $3.4 trillion.

The results of a recent McKinsey Global survey suggest that the current digital transformation trend is directly related to the COVID-19 pandemic. According to that survey, executive respondents credited the pandemic with hastening a migration to digital technologies at their own businesses by as many as four years. The majority of those respondents say that much of their focus has been on digitizing customer experience in particular.

Much like the pandemic changed how companies conduct business, it also changed how customers interact with businesses. In particular, consumers were driven to online digital channels en masse thanks to lockdowns, social distancing, and other COVID-era safety precautions. 

Now, customers have a whole new set of expectations for the businesses they patronize. Those expectations are built upon their exposure to digital technologies that prioritize customer experience. Business Wire reports that 86% of customers say they would likely cut ties with a business after even a single unsatisfactory experience. In a post-pandemic world, it’s incumbent upon businesses to meet these expectations and craft experiences that boost customer satisfaction and retention. 

Digitizing the customer experience is how businesses are doing just that. By offering experiences that are enhanced by digital technologies, businesses can satisfy consumer desire for experiences that are personalized, immersive, and consistent from channel to channel. 

From segmented email lists that send highly targeted messages to individual consumers to customer onboarding software that keeps users supported and engaged long after the initial purchase, digitizing the customer experience helps businesses succeed.

Don’t Hold Back on Transformation

Digital customer experience isn’t just a buzzword — it’s a game-changer for businesses of all sizes.

Reasons Why Businesses Haven’t Digitized the CX

Many organizations still hesitate to fully digitize their customer experience (CX) despite the clear benefits. Reluctance often stems from concerns about cost, with the initial investment in technology and infrastructure appearing significantly challenging. 

Risk aversion also plays a role, as fears about cybersecurity, data privacy, and potential operational disruptions loom large. Perhaps the most common reason is the comfort of familiarity — long-established processes create a sense of security that can be difficult to leave behind.

Cost of Not Digitizing the CX

The cost of not digitizing the CX far outweighs these perceived obstacles. Companies that fail to adopt digital tools find themselves at a severe competitive disadvantage, struggling to keep pace with rivals who leverage technological advancements to enhance their operations and customer interactions. 

Today’s customers expect lightning-fast, ultra-convenient interactions, and failing to meet those expectations leads to dissatisfaction and decreased loyalty. Moreover, reliance on manual processes results in higher operational costs and lower productivity, creating inefficiencies that digital tools could easily resolve.

The message is clear: embracing digital transformation is no longer optional for businesses seeking to thrive in the modern marketplace. By overcoming initial hesitations and investing in a digitized CX, you can unlock new levels of efficiency, customer satisfaction, and competitive advantage.

6 Reasons a Digital CX Is Crucial for Businesses

1. Customer Convenience and Accessibility

Traditional customer experiences often fall short in today’s fast-paced world. Take banks, for instance. They typically require in-person visits for transactions, leading to long queues and limited service outside business hours.

Retail stores face similar challenges. By restricting customer service to store hours, they leave a significant service gap. Customers needing assistance after hours are left frustrated and unsupported.

These conventional approaches to service delivery are becoming outdated in our 24/7 society. They create unnecessary barriers between businesses and customers, potentially damaging relationships and loyalty. Digital CX transforms these outdated models into flexible, accessible services, offering convenience that aligns with modern lifestyles. 

Another huge benefit of digitizing customer experiences is the positive impact it can have on the quality of your multichannel experience. An optimal multichannel experience delivers customers consistent interactions no matter what channel they happen on. 

Customer support is one example. These days, it isn’t enough to have a single hotline or email that routes to a help desk. When a customer uses your product or service, they expect to be able to get hold of you — or a representative — quickly, easily, and conveniently. Whether they reach out over the phone, by email, or through the app, they want information that’s correct, current, and helpful. Keeping help consistent across channels can go a long way to improving the overall customer experience. In fact, 55% of customers say they feel “emotionally connected” to a business when they have the option of accessing support on the channel of their choosing, according to Gartner.

2. Personalization and Engagement

Manual customer interactions are often generic, lacking the personalization that enhances customer satisfaction. Traditional retail stores, for example, may offer uniform service without tailored recommendations​​. These interactions usually don’t leverage customer data, limiting the ability to provide personalized experiences.

Digital-first businesses, however, can use data analytics and AI to offer tailored experiences. For example, Amazon provides personalized product recommendations based on browsing and purchase history, while Netflix engages users with customized content suggestions​​. This continuous engagement through personalized services significantly boosts customer satisfaction and loyalty.

3. Operational Efficiency and Scalability

Manual processes in customer experiences are often labor-intensive and prone to errors. For instance, customer support handled solely through phone calls can result in long hold times and inconsistent service quality​​. This approach also incurs higher operational costs due to the need for extensive manual labor.

Implementing digital solutions can streamline operations and reduce errors. Automated tools like AI chatbots can handle routine inquiries, freeing human agents to focus on more complex issues​. Digital platforms also enable scalability, allowing businesses to adjust resources in real time to meet demand, enhancing efficiency and productivity​.

4. Customer Feedback and Improvement

In traditional customer experiences, feedback collection is often sporadic and not systematically analyzed. If your business relies on paper surveys or occasional feedback forms, you may be gathering incomplete data and slowing down improvement cycles​​.

Digital-first businesses can create a continuous feedback loop using platforms like Qualtrics to gather and analyze customer feedback in real time​. This enables quick identification and resolution of issues, leading to responsive improvements that enhance customer satisfaction​​.

5. Flexibility Against Changing Market Trends

Traditional businesses often struggle to adapt to changing market trends and customer expectations. Retailers, for example, may find it difficult to compete with e-commerce giants due to their limited online presence​​. Resistance to change and the perceived risks and costs of new technologies also hinder adaptation​​.

Digital-first businesses can quickly adopt new technologies and trends, staying ahead of the competition. This proactive approach helps you meet evolving customer demands and maintains a competitive edge​​.

6. Make a Good First Improvement With Digital Onboarding

Keep your customers engaged by offering streamlined, sensible customer onboarding. You’ll get them up to speed in no time with OnRamp, the best customer onboarding software available. 

With OnRamp, you can easily automate your onboarding processes with our customer playbook templates and build dynamic onboarding plans that guide your customers through the process one step at a time. Then, the OnRamp software lets you track customer progress so you can identify areas for improvement and make adjustments. 

12 Steps To Achieve Digital CX Success

1. Understand Your Customers

Start by digging into market research. Get to know your customers by using surveys, focus groups, and social media listening tools to gather valuable insights into customer preferences, behaviors, and pain points.   

Develop detailed user personas representing different customer segments. These personas should go beyond basic demographics to include goals, challenges, and preferred communication channels. 

You can also create a customer journey map to visualize the entire experience from initial contact to post-purchase support. This map should highlight key touchpoints and potential challenges, allowing you to optimize each stage of the journey. 

2. Develop an Omnichannel Strategy

Creating a seamless customer experience means integrating all interaction channels — from your website and mobile app to social media, email, and phone. Think of it as building a single, cohesive system rather than managing separate platforms. 

To make this work, focus on robust data synchronization by using customer relationship management and enterprise resource planning systems to make sure customer information is consistent and up-to-date across all platforms.  

Consider adopting omnichannel CCaaS (Contact Center as a Service) platforms. These sophisticated tools allow you to manage customer interactions efficiently across all channels, enabling you to provide personalized experiences and maintain continuity in your service delivery.

Maintaining consistent branding and messaging builds trust and reinforces your brand identity, regardless of the channel a customer uses.

3. Leverage Advanced Technologies

Harness the power of AI to supercharge your customer experience. Start by implementing chatbots and virtual assistants to handle routine questions and provide instant support around the clock.

Look into automating repetitive tasks that eat up your team’s time. Tasks like order processing, follow-ups, and collecting customer feedback can all be streamlined. This will free up your staff for more complex tasks and reduce human errors.

Use AI to dive deep into your customer data. It’s like having a super-smart analyst who can spot patterns and offer personalized recommendations for each customer. You can also use advanced analytics tools to understand customer behavior, preferences, and trends. 

4. Optimize for Mobile

Your website and digital platforms need to shine on every screen size. When a customer pulls out their smartphone or tablet, your content should look just as good as it does on a desktop.

But don’t stop at responsive design. Consider developing a mobile app that puts your core services at your customers’ fingertips. It’s about making their lives easier, whether they’re on the go or lounging on the couch.

Focus on intuitive navigation and swift loading times — users quickly abandon slow or confusing interfaces. Place critical information front and center, using clear headings, concise summaries, and easily tappable buttons. A robust search function and logical menu structure also help users find what they need in just a few taps. 

5. Balance Automation with Human Interaction

Think of AI as your customer service team’s sidekick. It handles the everyday stuff, freeing up your human agents to tackle the trickier issues that need that personal touch.  

But don’t ditch the human element. Your customers sometimes want to chat with a real person, so keep those live chat and human support options open. It’s about giving your customers a choice in how they reach out to you.

By blending AI and human support, you’re creating a powerhouse customer service approach. The AI takes care of the quick and easy stuff, while your team steps in for those nuanced conversations that machines just can’t handle.  

6. Invest in Continuous Improvement

Surveys, reviews, and direct chats are your golden tickets to understanding what makes your customers tick. Use tools like Net Promoter Score (NPS) and Customer Satisfaction Score (CSAT) to quantify their experiences. NPS reveals loyalty by measuring recommendation likelihood, while CSAT pinpoints satisfaction with specific interactions. These metrics aren’t just numbers. They will help you develop better products and services.

Dive into this feedback and look for clues about trends, pain points, and areas where you can step up your game. Use what you learn to fine-tune your digital strategies in response to new trends or needs you have identified.  

By keeping this feedback loop running, you’re building a business that listens, adapts, and always strives to be better. That’s how you turn satisfied customers into loyal fans.

7. Train and Empower Employees

Roll out training programs to equip employees with skills to use digital tools and platforms effectively, including training on new technologies, customer service best practices, and data analysis. 

Break down those departmental walls. Get your marketing mavens, sales superstars, and customer support champions talking to each other. Collaboration will help your team more effectively implement digital strategies. Plus, it creates an environment where innovation thrives.

Empower your employees to make decisions on the spot and own those customer interactions. It’s about trusting your team to do what’s right for the customer. Provide them with the tools, resources, and backup they need to succeed. 

8. Implement AI Responsibly

When it comes to AI, play it smart and ethical. Be an open book about how you’re using customer data. After all, no one likes feeling like their information is disappearing into a black box. Make customer privacy your top priority and safeguard it with the same care and attention you’d give to your most valuable asset.

Don’t let AI become a crutch. Some decisions need that human touch, so know when to let your team take the wheel. Remember, AI is there to make your human interactions even better, not to replace them.

And that’s a reminder to keep a watchful eye on your AI systems. They’re like high-performance engines, and they need regular check-ups to keep running smoothly. When you spot a hiccup, don’t hesitate to make adjustments. It’s all about fine-tuning for peak performance.

9. Enhance Cybersecurity Measures

Secure your digital assets with the same rigor as a high-security facility. Your customers’ data is invaluable, and protecting it should be your top priority.  Implement robust authentication methods to make sure only authorized users gain access to sensitive information.

Stay current with data protection regulations such as GDPR and CCPA. Regularly update policies and practices to make sure you comply and demonstrate your commitment to customer privacy.

Also, make sure you have a battle plan ready for cyber emergencies. A solid incident response plan is like a fire drill for your data — everyone knows their role, and you can jump into action at a moment’s notice.

10. Focus on User-Centered Design

Put your digital platforms through their paces with real users. It’s like a test drive but for your website or app. Watch how people navigate your digital space to spot pain points.  

Make sure your digital door is wide open for everyone. Accessibility is your ticket to reaching all your customers, including those with disabilities. Think of WCAG guidelines as your accessibility playbook, so you can roll out the red carpet for every user.

Embrace an iterative design approach to keep your digital products in top form. This cyclical process involves continual refinement based on user feedback and testing results. Start with a prototype, gather user insights, make improvements, and repeat. Each iteration brings you closer to a product that truly resonates with your audience.

11. Foster a Culture of Innovation

Give your team the green light to try new things without worrying about failing, and reward those lightbulb moments. When someone comes up with a game-changing idea that makes your customers’ lives easier, celebrate their achievement with recognition and perks. Show your team that thinking outside the box is allowed and celebrated.

Innovation is a team effort. Break down those departmental silos and get everyone in the mix. When your marketing whiz, your tech guru, and your customer service superstar put their heads together, magic happens. 

12. Measure and Analyze Performance

Set up your digital dashboard with clear KPIs. These are your go-to gauges for measuring success. Think of it as a high-tech control panel for your business. You’ll know at a glance how your digital initiatives are performing.

Also, don’t operate in a vacuum. Benchmark your performance against industry standards and competitors to see where you’re excelling and where you can improve.  

Let data drive your decision-making and use those insights to fuel continuous improvement. It’s about making smart, informed choices that enhance your digital customer experience. 

Embracing Digital-First Strategies for Future-Proof Customer Experiences

Let’s revisit the key steps for achieving digital CX success: understanding your customers, developing an omnichannel strategy, leveraging advanced technologies, optimizing for mobile, and balancing automation with human interaction. We’ve also highlighted the importance of continuous improvement, employee empowerment, responsible AI use, cybersecurity, user-centered design, innovation, and performance measurement.

Starting or enhancing your digitization efforts now will set you up for future success. The future of customer experience is digital, and those who adapt will not only meet but also exceed customer expectations. Embracing these digital-first strategies will help you create seamless, personalized, and efficient customer experiences, driving satisfaction and loyalty. As technology continues to advance, staying proactive and adaptable will help you maintain a competitive edge in a digital world. 

Are you ready to transform your customer experience? Try OnRamp today with a free demo!