Table of contents
- How to provide your customers with better service through digital transformation?
- How does digital transformation affect customer interaction?
- Shortening contact time and personalization – these are the most important elements of digital transformation
- Increase customer service efficiency through digital transformation
The intensive development of IT technology and the pandemic have caused a sharp increase in the use of digital interaction channels by buyers to communicate with sellers. Research indicates[i], that in Poland, during the pandemic, over 46% of respondents began using online shopping more frequently, and the intensity of human contact using digital communication channels increased noticeably. Most importantly, however, the situation did not return to the starting point after the pandemic and the lifting of restrictions. This means that digital communication channels with brands have fundamentally changed the function of marketing itself – they have become a driver of sales growth. The digitalization of customer interaction requires new competencies and investments in innovative IT technologies.
How to provide your customers with better service through digital transformation?
Current trends indicate that companies are moving from campaign-based marketing to real-time hyper-personalized marketing, where the customer and an individual offer for them are the central point. This is a necessary condition for building long-term relationships and customer loyalty. To better understand their customers and monitor their engagement, companies must have modern IT solutions that will allow for:- Gathering complete knowledge about customer interactions and real-time integration of data from all communication channels.
- Quickly preparing a properly personalized offer and reaching the customer with it faster than the competition, using the communication channel most effective for the customer.
- Maintaining constant interaction with the customer in every communication channel.
- Simple scaling of workloads and easy addition of new channels and methods of interaction.
- Full use of advanced analytics using Artificial Intelligence (Artificial Intelligence) and Machine Learning (Machine Learning) to actively identify behavioral patterns and shape ways of reaching each customer in a maximally individualized manner.
How does digital transformation affect customer interaction?
The average consumer is immersing themselves more quickly and deeply into the world of digital interactions. Handling matters with a telecommunications company, a bank, or an insurance company begins with contact with a digital assistant, often in a voice version – these are no longer just simple text chatbots, but advanced solutions based on AI and ML. Submitting and processing even complex applications can be done automatically. Virtual Reality (VR) offers completely new possibilities in building POS (Point of Sale), for example, when selling perfumes or whiskey, and the number of followers on social media can influence the final price of a product for a specific customer[ii]. QR codes are often found on promotional and sales support materials, leading to social media where contests for engaged customers take place. Their activity helps convince other, less decisive buyers of the company’s products. Paradoxically, in some cases, limiting the number of interactions between the company and the customer can also be perceived positively – the automation of utility meter readings such as water, electricity, or gas, and the lack of need to wait for a meter reader, is a great plus for suppliers. Modern sales platforms provide instant insight into the company’s full offer, product variants, their documentation and application examples, transaction history, and current account balance. Every facilitation in the purchasing decision process helps increase sales, and the automation and acceleration of settlements only reinforces the positive message. Examples can, of course, be multiplied, but they have one common denominator – customer comfort. It is the customer who decides what, how, and when they buy. The seller only needs to adapt to their preferences and present a consistent offer that builds positive emotions, regardless of the chosen communication channel. Therefore, the key to success is the ability to make a purchase at any time of the day, conveniently, and with the conviction of price attractiveness[iii]. Even if a customer plans to buy in a brick-and-mortar store, they still look for information on the Internet beforehand. There is probably no need to convince anyone of the importance of a first impression. The conclusion is that there is no turning back from the digital transformation of business processes. Those who do not do this will disappear from the market. Companies can only differ in the pace and scope of the changes introduced.Shortening contact time and personalization – these are the most important elements of digital transformation
From the point of view of business automation, the most important goals to achieve are acquiring new customers, increasing the number of transactions, and increasing the customer retention rate. Improving these indicators is possible through customer service automation, which in practice means shortening contact time and far-reaching personalization of the offer. To achieve these goals, companies primarily use Marketing Automation systems, A/B testing, and tools and methods that allow them to better understand their customers. In the latter case, these are analytical applications that allow for fully utilizing the potential inherent in micro-segmentation, personalization of experiences, and the advantages of an omnichannel approach. Very interesting information was provided by the EY study “Technological Marketing Transformation”[iv]. It turns out that in Poland, 68% of organizations use simple cookie mechanisms and historical data collected based on previous interactions to personalize their offers. Only 10% of respondents create individual Next Best Action/Next Best Offer purchase recommendations using tools that utilize artificial intelligence and machine learning algorithms. It is clear, therefore, that a real revolution is still ahead of us. It seems that shortening contact time with customers and optimizing related costs is simpler. All software bots that perform typical and repetitive tasks are very effective in terms of customer service automation, thereby relieving the organization’s staff. It is enough to look at the RDA (Robotics Desktop Automation) class solutions available on the market to see, for example, how much the time for handling many matters can be shortened if an automaton copies and transfers data between different business systems without errors.Increase customer service efficiency through digital transformation
Increasing customer service efficiency, business process robotization, and the digital transformation of many offices are just some of the manifestations of rapidly progressing hyperautomation. To streamline customer service while simultaneously reducing operating costs, companies motivate their customers to use self-service contact channels, e.g., through forms on websites, chatbots, or automatic call centers. This is clearly visible in the telecommunications industry. Companies have invested in extensive self-service platforms on the Internet, in mobile applications that allow changing a tariff, checking a bill, or topping up a card. In every automated communication channel, the most urgent and frequent tasks can be completed without the need to talk to a consultant or visit a customer service point. The same applies to the insurance industry, where in many cases, reporting and settling a claim can be done via highly automated web applications. Employee activity is needed only in unusual and exceptional cases. In many cases, the customer’s contact with the seller and the first transaction is not the end, but only the beginning of a relationship with the company. Therefore, in a highly competitive market, the need to build loyalty and a bond with the buyer becomes of fundamental importance. When planning a long-term digital transformation and automation strategy, one must also remember the specific characteristics of large consumer groups – the Generation Y currently entering the market is largely less sensitive to advertising content, is able to skillfully filter messages, and expects individual content and products that meet their needs. Meeting these requirements means that organizations must:- maintain information and image consistency across all sales and customer service channels, both digital and classic;
- conduct open and responsible communication with customers, while remembering that any falsehood will be detected and disproportionately publicized;
- apply a simple, transparent, and easily understandable pricing policy;
- train and educate employees so that they understand the importance of their work;
- minimize customer inconvenience and negative emotions when changing service channels;
- invest in new and effective technological solutions that comprehensively manage customer information.
