October 11, 2018 | The XM Blog

3 Ways Digital Transformation Fails—Plus 2 Success Stories and 1 Big Truth


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Working with companies across every industry to implement customer experience (CX) and voice of customer (VOC) solutions, we see first-hand how deeply invested businesses are in digital transformation efforts. Most often the initiatives have big budgets and similarly sky-high expectations. They’re also often off-track from the start because of faulty assumptions about what digital transformation is, what it can accomplish, and how it’s managed.

Here are three ways digital transformation efforts fail:

  1. Putting technology first. Achieving transformation involves making the right technology investments, not making the most technology investments. Impressive apps and expensive upgrades aren’t going to solve business problems, and they often make problems worse by steering money and attention from other—usually more important—issues.
  2. Focusing on automation or cost reduction. Machine learning and artificial intelligence (AI) aren’t only about replacing people with systems. Whatever your business, your customers still want to interact with other humans. Each organization needs to find the right balance between improving and speeding up services through self-service, and ensuring that thinking, feeling people are in place to meet the needs of other thinking, feeling customers. A more strategic use of AI can improve anomaly detection and uncover hidden customer needs and motives.
  3. Giving the job to IT. If it’s a digital initiative, it must be an IT function, right? Wrong. Like CX, digital transformation delivers better outcomes when the entire organization is involved. Marketing, operations, IT, customer success, and the c-suite should have a stake. Plus, org-wide strategies and goals need to be laid out in advance—so everyone is aligned and working together.

 Two very different businesses find transformation success by following customer needs

Most of our clients are on digital transformation journeys. These two case studies demonstrate how focusing on VOC helped them set strategies and make decisions that met transformation goals.

Top 25 Bank Comerica Ties Digital Banking Improvements to Customer Satisfaction: “Customers are not really comparing us to other banks, but to other experiences they have. With ForeSee, we’ve been able to statistically demonstrate that our investments improved customer satisfaction.” –Kristy Brandon, Senior VP of eBanking Retail Products, Comerica

UK Telco Provider Three Grows Mobile Adoption, Self-service, and Add-on Revenue: “We knew the mobile app could provide the best experience… but we hadn’t been listening to what our customers needed. With ForeSee, we’re improving digital services with limited resources that impact revenue, growth, and satisfaction.” –Steve Winton, Head of Digital, Three

Digital leaders’ one guiding principal

If you’re creating value, especially for customers, you’re on the path toward transformation. Read more about how customer-first strategies help achieve transformation goals. Or talk to one of our experts about using CX strategies to create digital leadership.

About the Author

As a pioneer in customer experience analytics, Verint delivers superior technology and proven methodology to connect the customer experience to the bottom line. The result is better business for companies and a better experience for consumers.

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