Digital transformation is the key area to improve customer experience. Big data and analytics are just the tools to help digital transformation. In the early days of the internet, customer behaviors on websites were seen as something beyond an organization's control. But as we are transforming into a digital world, big data and analytics can help organizations to understand, measure and control customer activities on their websites. Digital transformation can improve customer experience and help to do more business.
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What Companies Are Thinking
Nowadays, companies are competing furiously to get the attention of customers. For this, they need to simplify the customer’s problems while interacting with them digitally. This is where big data and analytics come in. They are simply some tools that can help in bringing a revolution in the form of digital transformation. Digital transformation is necessary for a company if it wants to achieve success in modern times. A company cannot thrive simply by using some tools to make its presence known on the internet. It also has to go through a transformation, in order to really take advantage of these technologies.
What Is Digital Transformation?
Digital transformation of a company actually refers to the process by which a company becomes digitally mature and gains a solid digital presence on the internet. This is achieved by a multistage process in which the company makes a functional website, establishes itself on social media and finally begins collecting data from a variety of sources.
This digital transformation is necessary because it allows the company to determine the preferences of its customers and also check for any limitations in its existing e-commerce system. As time goes on, companies are learning about the importance of digital technology and about undergoing a transformation, in order to effectively manage their business and keep up with their competitors.
How Digital Transformation Can Improve Customer Experience
Digital transformation can be thought of as the last step of the process through which a company becomes more digitally sophisticated and more connected to its clients. This is very important, as the process can determine the behavior of the company’s clients and future customers when they come to visit the company’s website.
The first step is being digitally competent with other companies. If the company is digitally competent with other companies, then it will at least have a functional website, which can be of at least limited use to the customer. This site isn't expected to be very dynamic or useful, though. It may not even be mobile-friendly, but it means that the company has entered the digital market.
In the second step, the company becomes digitally literate. The company will now be present in social networking sites and social media. Along with this, the website will be much more dynamic than before and will respond to the customers’ needs effectively. The site will also become suitable for mobile devices. Some more advanced features like a shopping cart may be added to the website too. Thus, in this stage, the company needs to gather all the tools which are required for making the company digitally mature and sophisticated. However, in order for it to really be digitally mature, it’ll still need to go through the third and final step.
Now, when the company is ready to go through a complete digital transformation, it’ll create a special team to look into the matters of the collection and analysis of big data. The team will have big data scientists, analysts and special computation structures for collection and processing. The information collected from big data resources will play a big part in important marketing decisions. Thus, it’ll understand the vast usage and benefits of using big data and provide smoother customer service as well.
By undertaking the mentioned steps, the company will likely be able to find the faults with the buying and selling process easily. For example, it can look into the whole payment process and can find exactly which part of it is being interrupted. This will help the company to smooth out the process and provide a good customer experience.
Tools Used in Digital Transformation
The main tool used in the digital transformation of a company is big data. Big data analytics can be used to better understand customers, which can be used for the improvement of the customer experience.
The data is processed by the big data team after the collection. At this time, many big data processing tools are used for turning the jumbled set of data into meaningful information. Then, this information is applied to a variety of problems to find their solutions.
Some Practical Use Cases
Many companies are undergoing a digital transformation for added benefits and ease of the customers. They have achieved this by many diverse methods, but all these organizations have used big data analytics as the primary tool for this transformation.
For example, an organic grocery store chain in Germany known as Alnatura has managed to quadruple its sales in just eight years by going through a digital transformation. This company made €690 million in 2013–14. They have moved large amounts of data into a powerful system for easier and faster access.
Popular coffee maker company Nespresso has also gained large profits and enhanced its customer experience by undergoing a digital transformation. Nespresso has done it to understand more about their customers' preferences and tastes. Big data thus played a major role in it.
Another example is that of T-Mobile. This company is a customer-centric one which aims to provide low-cost and high-quality mobile phones to its customers. It has a very efficient IT sector, which specializes in testing, thanks to a digital transformation project.
In modern days, companies and businesses are trying their best to attract the largest numbers of customers by providing smooth customer service. For this, they need to go through the process of digital transformation. Digital transformation can be very beneficial for both the organization and its clients.
Digital transformation is achieved through the use of a variety of tools related to big data analytics. This can ultimately lead to a smooth experience for the customer. Many successful companies have gone through such a transformation. Thus, digital transformation of an organization is very necessary nowadays, if the organization wants to be successful and race ahead of all competitors.