How Digital Transformation Reshapes Consumer Interactions

Modern companies are now forced to embrace digitization and should place an added emphasis on updating customer interactions.

Digital transformations have dramatically changed business landscapes in recent times, forcing companies to rethink their approach to innovation, not least due to the way it has reshaped consumer interactions. 

Research suggests that global digital transformation spending for this year will top $6.8 trillion, which emphasizes the need to embrace change. To cultivate mature digital companies, organizations must first understand the impact that the shift towards digital consumer interactions has caused. Here’s all you need to know.

Consumers are the driving force of innovation

Innovation often revolves around customer-centric ideas because consumers have the power to determine whether a product innovation succeeds or fails. The most innovative companies will look to involve consumers throughout creative processes. Digital transformations have made this a far more viable option.

The My Starbucks Idea program was one example of how passionate brand advocates can provide the basis for future innovation by encouraging consumers to suggest new product ideas. It unearthed several good ideas and shows that digital transformations allow for data-driven decisions rather than guessing what consumers want. It can be very useful when searching for incremental innovations. On a side note, participation from customers also leads to increased client engagement. 


Customers now seek personalized interactions

Digital transformations haven’t only enabled organizations to connect with consumers via digital channels. They have also allowed them to track and analyze an array of data from those consumer interactions. The importance of doing this is underlined by the fact that 79% of customers say that they are only likely to engage with an offer if it has been personalized to reflect previous interactions the consumer has had with the brand.

Consumers want to be recognized by brands, either by name or through their habits. Improving the customer experience is one of the main goals of innovation strategies. Digital transformation enables companies to learn more about the user by tracking data from their interactions. Following this, companies can prove that they are the right match for the individual while recommendations can boost transaction values. 


Consumers expect automated client care

Client interactions should not be limited to the sales funnel. Studies show that 70% of the buying experience is based on how the customer is treated. Furthermore, a growing percentage of consumers now prefer self-service customer care courtesy of chatbots and other automated services. It is rapidly changing the realm of consumer interactions.

Happy customers will stay loyal while returning consumers spend 67%, on average, more than new ones. An innovation that boosts customer support efforts in this way will naturally put the company in a stronger position. Tools like KICKBOX allow you to accelerate the prototyping phases of innovations like this. Better still, automating customer support leaves employees with more time to unlock their creativity.


Customers want to be a part of the journey

Sixty-five percent of high-growth companies plan to collaborate with customers during the innovation process. However, they also want to be a part of the brand’s ongoing journey. While digital transformations may reduce face-to-face interactions, they can actively bring the community closer together. 

Innovative organizations can use digital interactions to keep consumers updated, since notifications can be directly sent to them. Meanwhile, the use of Augmented Reality (A/R) can show prototypes or provide a glimpse of the ideas your business may develop. The feedback that follows will guide the company’s next steps.


Embrace a digital transformation with KICKBOX

While digital transformations are largely focused on a cultural shift in mindset, you still need the right tools to implement the switch. KICKBOX’s employee innovation program tools are ideal, particularly as they allow for customer-centric developments and encourage consumer feedback.


Let us give you and your team the tools to promote innovation in your company. If you're rready to transform your business in all aspects, then reach out to us.

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