By BOB ISAKSEN //
Digital demands on companies skyrocketed during the pandemic, as workers went remote and consumers spent more time online.
As we enter the new year, companies should take stock of how they’re using digital assets to meet customers’ needs and improve efficiency.
One report from customer engagement platform Twilio shows that COVID‑19 accelerated companies’ digital communications strategy by an average of six years, while 97 percent of enterprise decision-makers believe the pandemic sped up their company’s digital transformation.
While digital transformations are critical, 70 percent of large-scale change programs don’t reach their stated goals, according to management consulting firm McKinsey & Company. Since the pandemic’s onset, we’ve seen that for companies, being forced to change and changing effectively are not the same.
A successful shift means following comprehensive digital-transformation strategies tied to business objectives, particularly in meeting and exceeding customer and employee expectations.
Bob Isaksen: Digital to-dos.
First, develop a clear data strategy. As businesses integrate more digital tools, they generate more data than ever. Social media, digital payments, loyalty programs, website interactions and other new platforms add to the troves of data – but business leaders must organize and act on data effectively.
It’s imperative to capture the most accurate information from customers, products and vendors. From there, you need a method to organize and store the data securely and a distribution strategy to ensure the right people have the correct data to inform decision-making.
Next, break data out of silos to drive value. Ensuring you get useful data in the right hands requires effective digital tools throughout the company. Organizations often put the bulk of tech innovation responsibilities on IT or digital teams, but every team can use data to deliver targeted solutions. Modern software platforms and application programming interfaces can make data securely accessible to the people who need it.
When considering where to integrate new data solutions, consider your company’s top daily functions that require data. Is that data usable, visible, secure and integrated? If not, ask employees where the gaps are. Open the door to creative ideas from people at all levels.
Remember to start with the customer – not the technology. Though many company leaders expect operational efficiency and process improvements from digital-transformation journeys, those metrics shouldn’t dominate your strategy. Instead, focus on your customers first.
Born into it: Digital natives — you know them best as Millennials — now make up the largest percentage of the U.S. workforce.
People expect the same seamless delivery of digital experiences in business as they get in their personal lives, such as buying groceries through an app or connecting with colleagues via videoconferencing. Technology is a vital part of human existence today: Forrester Research estimated around 80 percent of consumers saw the world as strictly digital in 2022.
So, instead of starting with the back office and seeking ways to cut operating costs, ask yourself what technology can do to improve your customers’ experiences. Start by imagining your customers’ journeys of engagement from first hearing about your brand to their first transaction to the customer service they receive after purchase. This “customer journey map” can help you improve the experience from start to finish.
Finally, empower your employees with digital tools. Yes, successful digital transformation starts with a customer-focused approach – but the strategy must consider employees, too.
With the rise and staying power of remote or otherwise tech-enabled work during the pandemic, employees see that digital tools could make them better at their jobs, often with less effort. And digital natives, the largest group in the U.S. labor force, have high technology expectations.
A good digital strategy will help you free up your employees’ time, creating more room for higher-value, innovative and creative work. It will also help you attract more digital-savvy employees who can drive your company into the tech-first future.
Customer and employee experience should be at the center of any digitization effort. Equipping employees with the right tools, making data more accessible and increasing the value of your data with the right strategy will all add up to more satisfied customers.
But remember – as you innovate to stay competitive, so will other companies. Digital transformation isn’t a set-it-and-forget-it process. It must be a continuing journey of learning, testing, iterating and executing to exceed ever-expanding expectations.
Bob Isaksen is a Long Island business banking market executive at Bank of America.
