Marketing Report: Digital Transformation and Customer Experience

This report delves into the realm of digital marketing and Customer Experience Management (CEM), emphasizing the shift towards digital platforms and devices in modern business. It defines CEM as a strategic approach to manage customer interactions and expectations through digital channels, crucial for building customer loyalty and achieving business objectives. The report explores how CEM involves understanding customer needs and developing systematic frameworks, while also highlighting the importance of personalized interactions, data analysis, and the role of digital tools in enhancing customer experience. It discusses the impact of digital transformation on business models and the importance of adapting to evolving customer expectations. The report examines strategies for creating positive customer experiences, including creating complete customer profiles, personalizing interactions, and measuring ROI. It also emphasizes the significance of digital advertising, mobile experiences, and data-driven insights in driving business success and staying competitive in the market. The report concludes by highlighting the necessity for businesses to prioritize customer experience and leverage digital technologies to achieve their goals.

MARKETING MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Digital marketing is the way of marketing of goods and services with use of digital
technologies mainly on internet, display advertising, mobile phone and other digital media. The
development of digital marketing took place in 1990s and 2000s which has change way of doing
branding and business uses technology for doing marketing. Digital platforms are increasing in
organisation and people using digital devices instead of physical shops and campaign of digital
are more efficient and prevalent (Chan, He and Wang, 2012). Similarly, Customer Experience
Management (CEM) is defined as how company takes control and way of doing interaction with
consumers. Each member in company build customer interaction from their own perspective.
CEM is considered as improving and viewing interactions among customer and business across
their journey. Here, CME helps in understanding consumer need and development of systematic
framework to facilitate and achieve business objectives with uses of digital marketing. Thus, it is
very essential for organisation to maintain effective relationship with their consumers in order to
fulfils their needs and requirement. In today's era, relationship is maintained with help of digital
technology with individual. Therefore, the main objectives of organisation to achieve their goal
and target within given time period by maintaining relationship with consumer with help of
digital technology.
MAIN BODY
Customer experience management is defined as practices of reacting and designing to
interaction of consumers for meeting their expectation and increasing their advocacy, satisfaction
and loyalty towards organisation. It is type of strategy which need many technologies and
process change for accomplishment of goals and objectives. It is interaction among consumer
and organisation over time period till existence of their relationship. The interaction is consist of
three parts such as brand touchpoints, customer journey and environment where consumer
experience. It is more related with serving consumer online in efficient and effective manner.
This experience implies at three different levels such as emotional, physical, rational and
spiritual (Collins and Halverson, 2018). Customer respond directly and indirectly with
organisation. Direct contact occur when goods is purchase or initiated by consumers whereas in
indirect contact purchase take place through advertising, sales representatives, new reports, word
of mouth and others. CME helps in understanding need and requirement of customer and
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development of systematic framework for attaining business objectives. It is responsibility of any
organisation to maintain effective relationship with their target consumer in order to fulfils their
need and demand. The experience of consumer is created not only through contribution of
customer values but with help of company providing experience to individual.
CME is perception of consumers in both subconscious and conscious of relationship with
brand that results into interaction from life cycle of individual. The experience is extracted from
consumer insight which touch points and channels in whole organisation. It helps in taking
mountain of consumer data through online channels, extracting valuable insights from precision,
speed and others. The good CME helps in strengthening brand preference with differentiated
experiences. It assist in improving customer loyalty through memorable and valued customer
interaction. There is increment in revenue through existing and new sales from word of mouth
and lowering cost by reduction in consumer churn (Customer Experience Management, 2019).
The organisation can create successful customer experience management by help of three steps
such as creating and maintaining complete profiles of individuals, personalising consumer
interaction and getting right information at right time at right place. If business can maintain
effective relationship with consumers then they can work for them and finally achieve their set
objectives in systematic manner. The organisation can use various CME solution from SAS such
as customer intelligence 360, marketing automation, intelligent decisioning and marketing
optimization. These all solution have their own role for providing answer to consumers. Each
and every organisation should focus on improving consumer experience by providing them all
required facilities in better and effective manner.
The successful consumer experience strategy begin with aspiration centred and
empowering front-line employees for delivering it. The success of organisation depends upon
customer experience and services provided by them to other. In era of modern world, digital
technology plays an effective in creating positive consumer experience. In order to create
positive consumer experience, it is essential to know about requirement of consumer through
proper analysis that can help business in producing products as per their requirement. The main
goal of any business is to get success and earn maximum profits which is possible only through
providing high quality goods and services to consumer with use of latest technology
(DONNELLY and Peter, 2012). Consumer experience can be improve through creating
experience vision, understanding about customers, creation of emotional connection with them,
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capturing feedback in real time, using quality framework for team development, acting on those
employee feedback and measuring ROI from delivering customer experience (7 Ways to Create
a Great Customer Experience Strategy, 2019). This helps in creating and increasing importance
of customer service experience. It is an area which requires constant care with greater focusing
on strategy of consumer and creating positive impact for loyalty, increase in revenues and high
retention. Both customer experience and service is different from each other. Service means
providing all required facilities to their target consumer and experience means creating loyalty
towards company and products. Nowadays, each and every firm focus on increasing consumer
experience by understanding their need and requirement in order to achieve goal and objectives
of business.
Digital transformation is the way of forcing organisation to alter business models in order
to adopt market reality. The expectation of consumer is always high so keeping with new kind of
“always connected” helps in delivering unmatched consumer experience. The keeping of
customer at first priority is centre of many organisations strategy. As per research from IDC, two
thirds of CEO's of worldwide, more than 2000 organisation has shifted their activity from
traditional, offline strategies to digital modern technologies for improving customer experience
before end of 2019 as 34% firms has fully adopted digital transformation. Similarly, according to
State of Digital Business Report, it has been said that 47% of organisation have not started
digitalisation whereas 59% are worried that they are late for it. Companies following digital are
creating highly engaged consumers as 90% purchase frequently, 60% spending on purchase and
increase three times annual value (How Digital Transformation is Driving Customer Experience,
2019). It is also found in study that companies which are adopting digital technology for their
business are increasing 26% more profits as compared to others. There is huge opportunity for
revenue that can create through using of digitalisation. There are different digital tools which can
help consumers to get what they want such as mobile devices, automation, apps, machine
learning. The digital technology has caused shift in expectation of consumers that result in new
kind of modern buyer. Digital technology helps in thinking first and interacting with consumers
through business to business sales teams, customer service teams and marketing teams. This
offer corporation an opportunity in understanding modern purchaser, engaging them and
delivering as per their expectation for multi channel consumer experience. In 2018, $1.3trillion
has been invested in digital technology and $900 billion has wasted.
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In increasing connected world, customer experience is important than consumer demand.
For meeting expectation, business should understand what customer is demanding and their
requirement. The seamless and sharp digital experience has made all difference in market.
Mobile experience helps in giving brand ability to communicate with their individual anytime,
anywhere and has potential in making world difference at their journey. It aid in providing great
opportunity for differentiating brands. For example, if consumers are provided with what and
when they need at real time helps in supporting from live agent help them through self service
channels can they are more satisfied and engaging more in future. In creation of customer
experience for achievement of goals and objectives personalised and targeted marketing is also
essential element for business (Improving the Customer Experience in the Digital World, 2018).
This can helps in retention and brand loyalty towards products and company. The sophisticated
consumer touch points like real time multinational support, up to date available of data and
information of customers are elements of targeted individual. Improvement in mobile experience
and making marketing helps brand to improve consumer experience. In order to maximize
positive impact of strategies, brand can make staff happy and get information which is required
to them. The use of digital technology helps in providing opportunity to employees to be
productive for improving their experience which leads to improve consumer experience. Firm
which are succeeding in today's hyper-competitive market and crowded is because of
development in technology and using innovation for improving consumer experience. The digital
innovation is increasing because of using devices for their customers.
All the industries has been gone through significant change from physical store to online
and in-store. It has created an opportunity for innovators and others to sell good and services.
There are different ways through consumer experience can be created by organisation so that
goal and objective of both parties fulfils in effective and efficient manner. There is increment in
personalisation as consumer data has been made available to them whenever required. Online or
digital marketing has been increased which is used by Amazon for customer journey. It is said
that 74% of consumers believe in personalised promotions that encourages them for purchase of
goods which they have never purchased before. Those organisation who ignores customer
loyalty and personalisation leads to lost of consumers to competitors (Homburg, Jozić and
Kuehnl, 2017). The data created by consumer helps in improving retention and advance lifetime
value. It is responsibility of business to build sales strategies for informing and making decision
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in effective and efficient manner. In order to survive in competitive era, it is essential for
business to move with current trends and updated technology. CME is also required in every
organisation in order to understand needs of customers and development of framework for
facilitating needs for attaining objectives of business. It is very important for corporation to build
trust of consumer through use of different compliance such as SEO, e-commerce, brand websites
and others (How businesses can enhance the customer experience through digital to stay ahead
of the curve, 2019). The engagement with customer helps in improving trust of individuals and
increase sales drive. Businesses should ensure compliance with regulatory requirement for taking
advantage of data available to them in effective and efficient manner.
Digital technology plays an effective role in success and growth of business in
competitive market. There are different modern advertising success which can helps organisation
to achieve goals and objectives. Through digital advertising, sales can be increased, web site
bounce rate increase, cost per acquisition reduces, time spent on website creates awareness,
direct traffic increases (Defining Advertising Success In The Digital World, 2019). In each
segment, advertisement plays an effective role in achievement of goal and objectives. Through
online or digital technology, consumer experience can be increased because today's people spend
more time on internet or social media and they believe in digitalisation. This can help them in
choosing wide variety of product from many and in case of any difficult they have option to do
live chart with them to get proper solution to problems. Most of firm are using digital technology
for survival in competitive and advanced market. It is necessary to upgrade them on regular
basis. The short and long term objectives can be achieved through regular up gradation and
planned strategies. In order to provide good experience to consumer, it is very essential for
organisation to adopt digital technology. As everything is organised digitally in organisation so
that proper outcome can be achieved. Thus, in this way, advertising helps in success of digital
world.
As per data of Forbes, 52% of Fortune 500 companies went into bankrupt, dropped off,
ceased to exist due to digital disruption. In order to achieve organisation goal, they need to use
digital initiatives for survival and growth. With change in time, it is very difficult for
organisation to innovate along with transformation of company and brand in order to understand
customer experience technology, impact and use for improving them (Digital Leadership: 6
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Examples of Brands that Reign Supreme, 2019). There are different example of organisation
which is using digital leadership which are as follows:
Nordstrom: Employing Customer Centric Strategy- This organisation is renowned for its
upscale and elegant customer experience. In order to maintain position in market place, it is
investing in digital technologies which serve consumers and empowered their employee
strategies. With the development in digital business model and strategy, firm is focusing on
providing best and ultimate consumer experience. They has created their website where new
feature added that is new point of sale system in which personal booking can be done for
tracking sales of individual consumer needs and request. The launching of innovation lab
followed development of social apps, employee texting, checkout and others and acquisition of
cloud based men's personalised service of clothing (Klaus and Maklan, 2013). This journey helps
in providing shopping easier and seamless user experience. Due to use of such technology, it has
grown revenue by 50% more than last five years. As it is continuously evolving to operate in
digital retail surrounding.
Auto-desk: Evolve with Digital- This organisation is the player in giving software
solutions for engineering, 3D design and relied on licensing model which was struggling to get
success in digitalisation world. It has faced uncertain future, so management made decision in
evolving from historical license software model to advanced versatile, cloud based software as as
service (SaaS). The objective of transition is attracting new subscribers, increasing user
engagement, improving product iteration for developing intuitive software. It has combined
efforts which has positioned organisation as digital player with the use of power of cloud
platforms for winning consumers and realising project in increasing operating margins from 13%
to 30%. With use of cloud computing, prospects of organisation are bright.
IKEA: Understand Customers- It is successful organisation at riding digital wave. As it
is world largest furniture company which is understanding consumer needs and using tactics for
grabbing their attention. It is known for its clever promotion that feature good humoured
relationship dynamics for making life better everyday with their products. The experimenting
with search has targeted particular problems due to which IKEA has renamed product for solving
life issues (Lemon and Verhoef, 2016). It follows hand on strategy where staff visits homes of
individuals and families in order to help them for designing hard to furnish spaces and creating
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inspiration for using of product through new methods and ways. This commitment with
consumers lead to digital project which creates connection among product and technology.
LEGO: Get Back to Basics- This Denmark based company LEGO developed from
manufacturing of kids building blocks to world famous firm touting clothing, video games,
books and theme parks. This company has gone through bankruptcy where executive
restructured corporation to focus on cutting costs, building products and engaging children with
digitalisation. It has gain success with construction kits and huge movies. With digital initiatives
they merge physical building and programming, capturing attention of target market, children
and making brand as innovator at market place.
Unilever: Join Disruptors- It is selling directly to customers than retailer and acquisition
required to build revenues and loyalty of consumer base. This organisation has platform for
innovators and start-ups where it has worked over 100 pilot projects for stimulating and
facilitating experimentation within firms. Also it has done collaboration with others which
includes tapping into new video platforms through scaling content through upworthy and more.
It has committed towards digital technologies and mobile within sustainable firm models which
is meeting low income people needs. It has developed transform partnership for engaging social
entrepreneurs in order to connect brand with social impact corporation around sanitation, water
and energy solutions (Ku, 2017).
CONCLUSION
From above report, it can be concluded that it is very important to have consumer
management experience in order to achieve goal and objectives of business. With rise in digital
technology, customer can feel good experience towards brand and organisation. Due to change in
time, most of organisation has adopted digitalisation for better experience. Thus, it helps in
increasing sales, revenues and profits of business.
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REFERENCES
Books and Journals
Chan, H. K., He, H. and Wang, W. Y., 2012. Green marketing and its impact on supply chain
management in industrial markets. Industrial Marketing Management. 41(4). pp.557-
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Collins, A. and Halverson, R., 2018. Rethinking education in the age of technology: The digital
revolution and schooling in America. Teachers College Press.
DONNELLY, J. J. H. and Peter, J. P., 2012. Preface to marketing management. Mcgraw hill
higher educat.
Homburg, C., Jozić, D. and Kuehnl, C., 2017. Customer experience management: toward
implementing an evolving marketing concept. Journal of the Academy of Marketing
Science. 45(3). pp.377-401.
Hutchison, A. and Woodward, L., 2014. A planning cycle for integrating digital technology into
literacy instruction. The Reading Teacher. 67(6). pp.455-464.
Hwang, J. and Seo, S., 2016. A critical review of research on customer experience management:
Theoretical, methodological and cultural perspectives. International Journal of
Contemporary Hospitality Management. 28(10). pp.2218-2246.
Klaus, P. P. and Maklan, S., 2013. Towards a better measure of customer experience.
International Journal of Market Research. 55(2). pp.227-246.
Ku, R. S. R., 2017. The creative destruction of copyright: Napster and the new economics of
digital technology. In Copyright Law (pp. 207-268). Routledge.
Lemon, K. N. and Verhoef, P. C., 2016. Understanding customer experience throughout the
customer journey. Journal of marketing. 80(6), pp.69-96.
Online
Customer Experience Management. 2019. [Online]. Available through:
<https://www.sas.com/en_us/insights/marketing/customer-experience-
management.html>.
7 Ways to Create a Great Customer Experience Strategy. 2019. [Online]. Available through:
<https://www.superoffice.com/blog/customer-experience-strategy/>.
How Digital Transformation is Driving Customer Experience. 2019. [Online]. Available
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<http://digitalmarketingmagazine.co.uk/customer-experience/improving-the-customer-
experience-in-the-digital-world>.
How businesses can enhance the customer experience through digital to stay ahead of the curve.
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<https://www.marketingtechnews.net/news/2019/jan/28/how-businesses-can-enhance-
customer-experience-through-digital-stay-ahead-curve/>.
Defining Advertising Success In The Digital World. 2019. [Online]. Available through:
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Digital Leadership: 6 Examples of Brands that Reign Supreme. 2019. [Online]. Available
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