The scope of innovation has multiplied rapidly with the increase in digitization and processing of data by mobile devices. Recent research has featured how the extraordinary properties of digital technology enable newer types of innovation processes. No doubt, such innovations are distinct from the analog innovation processes of the Industrial Era, yet they tend to bring about a techno-division among customers due to the void created by the loss of human touch in them. As firms innovate digitally, they face uncertainties, mainly across their- a) products or services, b) digital environment and c) organizational properties. While an environment thriving with continuous learning and improvisation of digital technologies is necessary, measuring impacts on customer experience becomes all the more crucial for implementing digitization. Furthermore, it is not just the usability or the aesthetics of digital products or services that impact customers, but their preferences of having a human element to ensure personalized services determine the overall customer satisfaction equation. Thus, an articulated and well-defined value proposition based on customer segmentation is critical for strategic pricing and positioning of an organization’s digitization measures.
This transformation is now pushing organizations to re-evaluate their customer’s journey and reimagine their customer experience strategies. But before putting on their thinking hats, the first essential step is to comprehend what their business offering is all about and what challenges and benefits does it solve for. Then comes the identification of the target customer segment. The company needs to know who their ideal consumer is, what channels they use and want to be served on. For this, development of a buyer’s persona is vital.
This persona dictates the design of the communication and distribution channels. While devising it, the businesses must understand the complex combination of technology and human touch that their target audience demands. The very blend of it is the game changer of any digital strategy. For e.g., GenX prefers human touch whereas Millennials prefer additional digitalized customer services.
While digitization not only augments the existing business, it also create new avenues for it. It not just includes development and redesigning of IT architecture and processes but also an intricate balance of customer experience with it. Prior to the full- scale implementation of such a strategy, the proof-of-concept approach should be tested. It is because this model not only boosts confidence but also helps in monitoring and evaluation of the digitized efforts.
Digitization is a disruption that directly affects human experience. Although the advancements in technologies over the past decade have revolutionized how businesses interact with customers, there can be a potential loss of human experience. Studies show that customers who receive services that have a human touch, display more positive responses. Hence organisations that embrace digitization must evaluate the influence of it on their customers. When the target segment consists of customers who are sensitive to human touch and slower methods of communication, a loss of human approach could lead to a loss in customer satisfaction. Thus, before a company plans to digitize, it should evaluate whether the product or service requires it, and whether the target customers are comfortable with such a change.
The understanding and acknowledgement of the inter-dependence of linear and exponential transformation forms the core of digital transformation today. While linear transformation improves the organization’s ability to improve customer experience by digitally innovating, exponential transformation changes the organization’s fundamental business model by adopting newer ways of providing value to customers. Irrespective of the path the organization chooses, the impact evaluation of it on the existing and potential customers is a pre-requisite. Customers still crave for a hint of human touch even in this digital era. Hence, before embracing full blown digitization, companies must gauge the relevance of it and repercussions of its absence on the satisfaction & revenue levels.
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