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Expanding Digital Experience

QDegrees

newsletter author

22-09-2022


Exemplary Customer experience is no longer a "nice-to-have" in many industries; it has become necessary. Brands ahead in the competition use standout experiences to attract and retain customers while reducing servicing costs and queries/complaints. The execution is complex & requires a complete reinvention of customer journeys and the supporting processes.

Technological developments dramatically impact how consumers search for information, evaluate products, make purchases, and share their experiences. Most of these changes are due to technological investments in new marketing opportunities. To further step up the game, there is a projection to spend $50 billion on marketing technologies globally by 2023 (Forrester, 2019). 

Regarding delivery channels, Digital and physical experiences have merged & are co-existing. Some physical experiences are better online, and consumers want to keep them that way. It's the customer journey that dictates your strategy in general.

The new-age customer wants to feel "always connected", & to keep up, a business must deliver an unmatched customer experience by embracing technology. Many organizations today have kept a customer-first strategy as their focal point.

As per research, thirty-five percent of business executives claim that digital transformation helps them to meet customer expectations better and enhance operational efficiency (40%), and 38% of executives plan to invest more in technology to make it their competitive advantage.

Mobile CX technology is becoming more valuable than catboats for companies. Consumers enjoy the convenience of meeting their CX requirements while on the move. Companies must not only have a mobile CX but also be able seamlessly to connect CX between different mediums, such as voice, video, or text. According to HBR, 73% of customers use multiple channels during their purchase journey, making an omnichannel CX a necessity for most businesses.

 

Digital Journeys are Relieving Customer Efforts

 

Customers effortlessly jump from one digital channel to the next as part of their overall customer experience. They no longer differentiate online and offline and expect similar experiences across different servicing channels.

Undoubtedly, brands with the strongest omnichannel customer engagement strategies can retain their customers more efficiently than companies with weak strategies. A digital customer experience strategy must include multiple channels that all work towards the same goal: customer satisfaction, regardless of the journey.

Digital support is becoming more popular with consumers. Using the web or mobile self-service support to assist them outranks speaking with an agent by phone.

29% of consumers would like to see significant improvements in the online resources provided by businesses, while 27% desire a major improvement in the purchasing process.

The global net spending on digital transformation in 2018 was $1 trillion. This figure will rise to $2 trillion by 2022.

 

Evolution of Digital Journey 

 

Earlier, most companies relied heavily on the superior quality of their products and services and the competence of their sales executives to pull off deals to generate high revenues. The focus has now shifted towards perfecting their 'experience optimization skills.' The journey has been gradual, from promoting their products in the market to considering their end-users actual needs and demands. Although the companies shifted their base from the retail market to the world wide web, their basic strategy remained the same. 

Digitalization ruling and attracting 62.5 percent of the world's total population and daily rising competition helped businesses understand that customer-centricity was what they must bring to the online market.

There are several reasons why digital customer experience has been gaining more attention-

  • An increasing number of "digital customers" use digital channels, touchpoints, and tools/devices to communicate their requirements.
  • Customers have high expectations and are influenced by the digital and real-time experiences they enjoy across different industries.
  • Customer behavior is becoming more complex, with many channels being used simultaneously.

PwC research shows that 73% of customers firmly believe that the customer experience is important in driving their purchasing decision. 85% of customers agree that CX matters and are willing to pay more. Gartner Inc. estimates that two-thirds of companies compete based on their customer experience. Every business wants to stand out from its competitors by improving its CX.

There has been an increase in digital customer service interactions over the last few years. This number is expected to grow continuously. The global CX technology spend is expected to exceed the $641 million mark by 2022. The shift to digital CX is not just driven by companies wanting to improve customer experiences but also by how businesses are being conducted as the world moves into the digital age. The pandemic increased the popularity of online shopping because of the convenience and positive experiences. Numerous studies also show that most people will continue to use digital platforms. According to a survey by Telus International, 71% of online shoppers will continue to shop online. It's rising not just online shopping; 77% of respondents said they would continue using digital telehealth services, and 92% said they would use digital banking.

 

Role of WhatsApp in Proliferation

 

WhatsApp had 1 bn users in 2016, 1.5 in 2018, and 2 billion by 2020. The growth is rapid. MobileSquared predicts that global WhatsApp users will surpass 3.1 billion by 2024.

According to the most recent WhatsApp statistics, over 5 million businesses connect with customers via WhatsApp. These numbers are only from 2019, a year after the launch of WhatsApp. This has undoubtedly increased in number. It is believed that it aids in growing their business by 80% of users.

Mobilesquared also predicts strong growth for WhatsApp Business API over the next few years. Per them, there will be a 5,400% increase in the number and size of businesses using WhatsApp Business APIs by 2024. There will be almost 55,000 medium-sized and large businesses using WhatsApp Business APIs. The total spend on WhatsApp Business APIs is $3.6 billion.

EZ Texting claims that 90% of text marketing messages are read in three minutes or less, compared to 20% for emails.

 

Vernacular Language Breaking Barrier

 

It is no secret that customers are more likely to buy from brands wherein they can access the website and product information in their native language. Common-Sense Advisory research shows that 74% of consumers are more likely than others to buy again from the same brand if they have access to after-sales support in their native language.

English is widely spoken all over the globe. But as it appears, nearly 90% of consumers won't consider buying from an English website if they don't speak and can't read English. 

How can you tap into this pool of international markets and attract an international audience to your products and services? It's not surprising that you need to be able to communicate in their language.

You'll see why it's worth it - studies show that 70% of customers give positive feedback to companies that offer multilingual customer service and language interpretation.

Around 70% of Indian internet users prefer Indic languages to English. These local-language speakers have opened up new markets for brands already accommodating them.

Adopting a specific language for a region can help you reach new audiences with lower CPAs and provide relevant content that will increase conversions.

For example, one of India's leading banks allowed users to open a savings account via their app or online. The brand sought to improve the cost efficiency of opened accounts by increasing the number of new accounts while maintaining their cost per account opening. The bank initiated a pre-post experiment discovery campaign and followed audience targeting (such as custom intent and remarketing) and creative best practices (like text-free) to cast it is net wider and connect with the growing Hindi-speaking internet user base images) to deliver quality conversions at a lower cost. This local-language targeting drove a 22% incremental conversion rate for the brand while achieving a 13% lower cost per account opened than in previous campaigns. 

 

Conclusion

 

Focusing on customer experience and digital transformation can lead to a 20%-30% increase in customer satisfaction and 20-50% more economic gains. Analyzing visitor interactions across a business's ecosystem is a great way to improve customer satisfaction. Businesses must adopt a holistic approach to visitor interactions to create seamless digital experiences for their target audience.


Sources: Forbes, McKinsey, Springer, Qualtrics, News Articles

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