Customer-driven digital transformation is the new normal

Companies that put the customer at the center of their digital transformation during the corona crisis were able to outperform their competitors, concludes PwC in a new study.

PwC examined the financial results of more than 500 European companies for two periods. This includes both 'waves' of Covid-19 infections on the continent. Some winning success formulas have emerged from the organizations that used best practices, the research shows.

Timo Koenen, Customer Transformation Lead at  PwC in the Netherlands, summarizes the results: “The winners in the new normal will most likely be those companies that put the customer at the center of their transformation and that enable a digital or virtual experience through technology. to make."Knowing your customer and responding to their evolving needs is considered critical to inform successful transformation

The importance of customer focus has been making headlines worldwide for some time now. Customers have raised their expectations in recent years: almost all of them now expect an Uber-like experience when purchasing products and/or services: simple, effective, fast and convenient. In addition, the current coronavirus crisis has changed consumer preferences, meaning businesses have had to reinvent the way they serve their customers.

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This is only possible when organizations work in a customer-driven way on innovation and optimizing internal processes. Nearly 50% of the 500 companies surveyed by PwC said understanding customers' needs is essential to their business transformation, while about 40% recognize that these needs are constantly changing.

“The winning companies have demonstrated that they can go further than just repositioning their brand to improve their customers' customer journey and align their internal processes accordingly,” explains Koenen. “They are prioritizing more flexible ways of working, increasing revenue and increasing efficiency.”Those 'winning' in the market are significantly more likely to strongly agree their organization continually monitors and responds to customer needsBest practices identified by the researchers include regular data-driven updates of customer journeys, continuously measuring results and customer satisfaction, looking at the customer journey from the customer's perspective, and collecting customer feedback on each experience. And with a view to innovation, these organizations use design thinking and focus groups to map out what their customers really want.

Technology

What the winners have in common, according to PwC, is that they use technology smartly. “The type of technology used is varied and different, but winners clearly stick to a common set of factors to determine which technology can best help their business.”Only 2 in 10 strongly agree they can capture real-time customer feedback and clearly understand customers' view of their journey

Artificial intelligence, data analytics and automated customer journeys are all ways to increase customer satisfaction while collecting valuable data, further strengthening the relationship between digital transformation and customer focus.

“While some winners also change their product and service offerings to stimulate future growth, others focus on creating efficiencies and savings for the next year,” Koenen concludes.

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