digital transformation important for customer experience

Why Digital Transformation Is Important For Customer Experience?

Sweta Chakraborty

09 January 2024

Digital transformation is an essential trend that’s been changing how brands interact with customers. Honestly, when was the last time any of us bought something without digitally researching about it? This makes it obvious that consumer interest is driving this entire trend.

Customer engagement has evolved over the years. It is no longer just a buyer-seller relationship. They want to see relevant content, connect with them on preferred channels, and avail self-service if necessary. With so much saturation in the market, it is important to focus on these interpersonal aspects to deliver a good customer experience.

It is almost impossible to imagine a business without a digital presence in today’s market. According to IDC, organizations going through a digital transformation are expected to contribute to more than half of the global GDP by 2023.

Mass digital adoption is happening all around the world and the change has also been catalyzed by the coronavirus pandemic. With more people spending time inside their homes, generating revenue became harder via traditional means. Many companies suffered financial loss due to less or no digital presence.

With so much emphasis on digital transformation, let’s discuss what is it and how it impacts the customer experience.


  • What is digital transformation?
  • What does the modern-day customer want?
  • Why is digital transformation important for customer experience?
  • Conclusion

What is digital transformation?

Digital transformation is the complete adoption of digital solutions that allows your business to support and connect with customers online. In this module, you will be using multiple solutions to optimize the digital customer experience. It brings operational fluency which benefits both: customers and employees.

Going digital means understanding the customer’s journey, their intent for interaction, and requirements. These factors will help you define your digital strategy.

Although, it is important to remember that going digital doesn’t mean abandoning the offline methods. Your brand must consistently deliver online and offline services to your customers to make the most of your resources. The ideal way to achieve this balance is by adopting an omnichannel marketing and customer retention strategy.

The modern customer demands an omnichannel customer experience instead of disjointed support. One can no longer get by with limited channels and a stingy experience.


What does the modern-day customer want?

The modern-day customer is driven by intrigue and ease. They want everything readily available without much hassle. They demand an omnichannel experience where all the channels are connected and there is no friction in communication. This also means that online and offline interactions are no longer separate. To connect with them personally, you must keep track of their wishlist, their offline or online purchases, their device preferences, and more. Once you have access to such specific information of every customer, you can offer targeted support.

In a completely digitized environment, you can improvise as per your customer’s needs. From offering self-service to offering customer support on social media, the possibilities are immense. The modern buyer wants complete connectivity and a seamless experience.


Why is digital transformation important for customer experience?

Digital transformation is necessary to keep your customers engaged. It also allows you to evolve your business to match the needs of the millennial buyer. Studies show that if you are not joining this wagon, then in a few years you are bound to lose revenue. The digital bound customer will no longer want to return to traditional ways of purchasing. Keeping this in mind, let’s discuss how impactful is digital transformation.

1. Personalised and Targeted Experience:

Earlier we would just release one billboard or television ad which may or may not be relevant to your prospects. Thankfully, that is no longer the case. Customers nowadays hate to watch advertisements or anything that treats them as a revenue provider. Instead, they want to see content that means something to them.

For instance, I am an avid user of Instagram and follow my preferred brands there as well. These brands can influence me to purchase if they sell on Instagram directly and offer support. This makes my life easier and I eventually become a supporter of that brand.

Every millennial customer seeks a very similar experience on their respective channels. With social media improving rapidly, selling or purchasing is easier now. You can also setup a customer support channel and offer 24x7 help with chatbot integration. Such a targeted customer experience enriches the customer’s journey. It creates a wholesome experience without much friction.

Further, every digital transaction is recorded in your CRM. This information will allow you to curate what you show your end-users. You can run email campaigns or ads based on the customer’s product preferences. Such initiatives are fruitful than just blindly selling everything. Hence, digital transformation is essential for offering a more personalised experience.

2. Operational Efficiency Leading To Satisfied Customers:

Sloppy methods of customer support also lead to dissatisfied customers. Having a dynamic team equipped with necessary contact center solutions will definitely reap better results. In other words, your agents benefit a lot from the digital transformation. Modern solutions like omnichannel, CRM, or ACD, make it easier for them to prepare and interact with customers easily. Earlier they would just wait for the calls or emails and then scout through each department’s directory to offer a solution. However, now thanks to digitization, most of the customer information is recorded and available for further interaction.

With cloud technology, agents can readily engage (even remotely) and improvise. They will not waste time dawdling while the customer grows impatient. With increased operational efficiency, tending to customers become easier as well.

3. Possibilities For AI-Integration Leading To More Accurate Decision Making:

The digital transformation is incomplete without AI integration. AI-driven solutions like chatbot, voice bots, or sentiment analysis help in understanding key information that is not evident to the naked eye. It enables you to segment your customers based on intent, behavior, and preference. The AI-driven bots will learn this information instantly unlike any human alternative. This enables your team to make more accurate decisions in regard to the product or service.

4. Hassle-free Connectivity Due To Omnichannel Experience:

Lastly, digital transformation will enable a seamless experience for your customers. As mentioned before, customers are available on multiple channels. They will no longer just call or Whatsapp you. They might email, drop a message or even visit a store. And above all, they will definitely not wait a day for your response.

Customers want real-time support, in their preferred channels. Having an omnichannel strategy will allow you to track your customer’s interaction history across channels. By doing so, you can create individual profiles for these customers and personalize them as per their needs.


Digital Transformation is the top priority of CIOs and it is important to keep it aligned with enriching Customer Experience. While such transformations yield higher productivity and better customer experience it will increase the ROI and brand equity, which is not always part of the agenda of digital transformation!


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