In the most recent issue of McKinsey Quarterly, McKinsey shares a great article (set of articles) on customer experience driven business strategy. The executive briefing “The CEO guide to Customer Experience” sets the scene with the leading question “What do my customers want?” – akin to a previous post on the Enfo blog.
I would strongly recommend reading the post or full report on the McKinsey site based on its important customer experience centric message alone, but one of the take-home points made is worthwhile exploring further from a digitalization perspective;
“Customers accustomed to the personalization and ease of dealing with digital natives such as Google and Amazon now expect the same kind of service from established players. Research shows that 25 percent of customers will defect after just one bad experience.”
Their research also shows that not only can a digital-first based approach offer higher potential customer satisfaction, it typically yields a more favorable customer experience whilst providing superior support to further understanding your customers’ needs and wants.
With an insight into your customers behavior and digital footprint, your business gains a first-mover advantage in anticipating the next set of customer requirements, and upcoming trends.
“.. For all the advantages of digital-first journeys, those journeys that are the most digitized across all the interactions lead to the greatest customer satisfaction”
So - not only does it provide an excellent opportunity to understand your customer better, digitalization also yields higher customer satisfaction; a win-win.
Important to weigh in is of course that this is a single-business and industry piece of research – but we can see the signs of rapidly changing customer preferences and expectations of a blended, rapid-response part-digitalized reality everywhere –
- In-car delivery of parcels, groceries etc through time-limited federated digital keys distributed to mobile devices
- Mobile device based one-click shopping, same day delivery (not to mention the tangents of drone delivery by air or remote controlled “box on wheels”)
- Payments, identity handling, context and location-based advertising .. the list goes on ..
Digitalization, augmented reality, Internet of Things, Big Data, machine learning and predictive analytics – are trending concepts and tools which can be leveraged to support your business providing you allow some leeway for innovation and investment - ..
.. so, how do you know what’s next & how to progress in the right direction?
<insert quick-fix panacea here>
- .. actually, it’s likely that you never really do – but with a firm grasp of your existing business processes, information model and customer needs, there’s a very good chance you’ll stay ahead of the competition with good margins, when venturing out to provide a truly digital customer experience!
By Fredric Travaglia, Business Development Consultant @ Enfohttp://www.mckinsey.com/quarterly/overview