- Customer satisfaction improves if digital transformation is seamless and customer-centric.
- Digital transformation succeeds only when it is prioritised in the overall business strategy.
- Breaking down silos and aligning internal processes foster digital transformation.
Many organisations are not ready for the digital transformation, and thus fail to deliver a seamless experience to customers or frustrate them even more. Common issues include an absence of an encompassing digital strategy, siloed departments, and insufficient understanding and commitment across the organisation. To succeed in this game is to prioritise digital transformation in the overall strategy, focus first on business functions which are more suitable for this change, and realign internal processes based on customer needs.
As the business world is being transformed digitally, established household names are going toe to toe with new kids on the block, and in some cases their customers are becoming their competitors. In a digital world, the product is no longer the differentiator. It is more about owning the ecosystem. We have identified at least six hurdles among organisations in their journey of digital transformation.
Hurdle 1: Not designed for adaptive change
Many organisations were not designed to be adaptive to the digital environment. The ones with a longer history or a larger size are entrenched in their own rigid internal processes or silos. Some of them have an operating business model which does not enable incremental changes across the organisation, therefore delaying digitalisation efforts.
Hurdle 2: Perplexed leadership hinders adoption
The senior management of many organisations are still struggling to fully understand what digitalisation means, and how this is a business case. When the top guys are unsure, it is difficult for the rest of the organisation to commit to it. It usually results in piecemeal and ineffective digital initiatives – a bad experience that pushes customers back to non-digital means.
Customers are pleasantly surprised if a digital experience turns out to be exactly what they need. By using data across the digital spectrum, the organisation can build a unique picture of its customers and design highly personalised interactions with them. Thanks to these “ah ha” moments of insights, you are on the road to improving customer satisfaction and building stronger customer relationship.
Hurdle 3: Lacks a long-term digital strategy
Hurdle 4: Legacy IT systems
Hurdle 5: When IT department itself becomes a silo
Hurdle 6: Constrained by internal processes
In many organisations, digital capabilities are designed around the constraints of their internal processes and technology. As a result, customers are offered products that can only be used across certain channels, therefore limiting their choices and leading to frustration.
42% of customers who voice their frustration about a service experience on social media expect a response within 60 minutes. Unanswered complaints can quickly go viral, causing real damage to the brand. Embracing social media brings the organisation closer to the customers and their sentiment, helps identify areas to improve and therefore increases customer loyalty.