Digital Transformation for Improving Customer Experience

Digital Transformation for Improving Customer Experience

Bahman Huseynli
DOI: 10.4018/978-1-6684-4380-4.ch005
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Abstract

Customer experience is defined as the customer's perceived overall quality of all interactions and relationships that the customer has with a company's products and services. Business leaders have increasingly begun to attach importance to the role of customer experience in helping companies gain competitive advantage. Also, the advantages and disadvantages of digitalization affect the customer experience process. In this respect, companies and brands that try to offer a unique experience for their customers need to prioritize the customer experience. So, in this chapter, the contributions of digitalization to customer experience are investigated. First, the theoretical infrastructure of customer experience and the creation of customer experience are examined. Afterward, customer journey and customer experience are discussed, and customer experience, touchpoints, and mapping of the customer journey are discussed. After that, digitalization and customer experience and the creation of the digital customer experience have been examined, and the conclusion has been reached.
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Introduction

Digitization has changed every aspect of our daily lives in the last decade. Technological devices have become a part of our daily lives, and individuals without a smartphone are almost nonexistent. Various objects such as shopping, along with most products and services, are digitized. Digitization can be seen in many sectors such as finance, education, health, sports, communication, transportation, and retail.

These developments have been reflected in marketing as well as other sectors. Customers are, first and foremost, humans. The internet is used by people all over the world for entertainment, shopping, socializing, sharing, and learning. Businesses are examining how to use and optimize the newest information technology as part of their total physical operations to maximize their chance to innovate, differentiate, and expand while also considering how to do it cost-effectively. According to Berman`s (2012) research of top organizations, companies with a coherent strategy to combine the digital and physical components of operations may effectively transition their business models. These forward-thinking organizations are focusing on two complementary activities: redesigning customer value offerings for increased customer contact and cooperation, and digitally modernizing their processes. To do this, companies are learning new skills that will help them move forward both ways.

One of the most impressive things that can be created with these technologies is experiences. Experiences have a very important place in marketing. This is the chance to integrate individuals into the new product development process of virtual prototypes on virtual platforms that will allow high interaction and engagement with customers to achieve personalized products (Füller & Matzner, 2007). As can be seen, digital technologies change Schmitt`s (1999) way of creating sensory, affective, cognitive, physical, and self-identity experiences. Although the usage and adoption levels of these technologies differ in developed and developing countries, they can facilitate people's lifestyles, increase the speed of service, enable them to experience the product/service, and encourage them to participate in design and development processes.

Marketing concepts have faced many different changes, from a commodity focus to a holistic perspective (Kotler, 1972). The role of the customer has also changed significantly from relational to emotional decision-maker (Schmitt, 2003). Today, it is seen that new customers only want to “access” the service that “millennials” will buy. Digital customers want to share, rent, or stream and are much more attracted to these brands that create valuable experiences. Their main focus is on sharing experiences using several digital devices. In addition, digital customers want to be in the creative role involved in all processes from design to production to promotional activities (Angus, 2018). This view encourages marketers to find new and digitized experiences with different technologies. As the use of internet technologies and mobile devices increases, companies need to adapt to technological developments that will create new experiences. On the other hand, with the increasing importance of data analytics, the success of experience management in marketing depends on interpreting accurate and reliable data at the right time and in the right way and using it in the decision process. Namely, since individuals are independent of time and location, there will always be a flow of data from various touchpoints to the CRM to support a holistic customer experience (Heavin, & Power, 2018). Emerging technologies and their impact on creating experience must occur “on an emotional, physical, intellectual, and even spiritual level” as with traditional methods (Pine & Gilmore, 1998).

Key Terms in this Chapter

Customer Journey: The customer journey is the end-to-end route that a customer takes to complete a transaction with a company, and it is a means of conceptualizing the customer experience by taking into consideration the many touchpoints that occur over the customer`s purchase cycle.

Digital Customer Experience: The digital customer experience is the sum of all the ways a customer interacts with a brand through digital channels.

Customer Journey Mapping: The customer journey is the route a customer follows from beginning to finish to execute a transaction with a company. In this regard, companies must carefully manage the customer journey and, as a result, the customer experience. The customer`s path is often plotted for this purpose. This is known as customer journey mapping.

Touchpoint: A touchpoint is a point that is touched for a specific reason through any channel. Any time a prospective consumer or customer comes into contact with your brand–before, during, or after they buy anything from you–this is referred to as a touchpoint. Customer touchpoints are any time a company interacts with a customer, such as through an email, a call center, or the company website.

Digital Transformation: Making full use of new technical capabilities to generate value and competitive advantage is what digital transformation is all about.

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