July 6, 2016 | Written by: Mark Dudgeon
Categorized: Customer Experience
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The digital economy is here across all industries – creating disruption in the business landscape as organizations embrace digital reinvention and transformation.
So what do we mean with Digital Transformation? Digital Transformation means different things to different people:
- For some it’s about technology
- For others, digital is a new way of engaging with customers
- And for others, it represents an entirely new way of doing business and defining new business models
It’s actually all of the above and more. The CMO role is drastically changing due to the emergence of new technologies – big data, social, mobile, cloud and cognitive computing that are driving this disruption. While each individual technology advance is expected to deliver significant benefits on its own, it is not the individual technologies that make the difference. It is the confluence of these different technologies that holds the greatest promise and delivers the biggest value across all industries.
To survive in the digital economy, CMOs must embrace new technologies, develop better customer experiences and manage the data explosion.
Ultimately Customer Value needs to be centric and key. At the heart of this journey are three key trends that are reshaping the customer experience:
CEOs put technology at the top of the list back in 2012, and their view hasn’t changed. However, for the first time ever, the other C-suite see technology as the main game-changer.
Due to new technologies, the barriers between formerly distinct industries are collapsing, as companies in one sector apply their expertise to others. To prepare for the future, 67% of CMOs intend to reassess their strategic direction, given the technological advances now disruption the marketplace.
Customer experience and customer centricity has emerged as key sustainable source and driver of business growth and differentiation.
In an era of empowered customers, 96% of unhappy customers don’t complain. However, 91% of those will simply leave and never come back. Additionally, digital isn’t about just working to deliver a one-off customer journey – It is about understanding and evolving based on inputs from the customer and fostering ongoing product or service loyalty.
Despite marketing’s desire to deliver an exciting, omni-channel and ever-available experience, there are key gaps. Only 20% of companies have a comprehensive view of engagements and touch points across stages of the customer lifecycle.
To create better experiences, CMOs need to be data-driven, but they are struggling with the massive amounts of available data and creating actionable insights from it. 60% percent want to use data-driven insights to shape their marketing campaigns within the next three to five years.
By digitally transforming the business, CMOs can use data-driven insights to create a better experience for their customers, allowing companies to sense and respond to customers’ needs in real time and predict the next, best step for engaging with them based on informed insight and use of cognitive enablement.
In our joint POV, IBM and SAP show how CMOs can embrace technology in the digital era to address these challenges. Read the ebook “Technology and CMO in the Digital Era”.