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Growth andCustomer Loyalty:Why DigitalExperiences MatterAn Innovation Index Special Report
Experiences matterFrom curbside deliveries totelehealth, the acceleration of digitalcustomer experiences revealedwhich organizations were preparedfor disruption and which weren’t.It’s a big divide.Disruption or not, customers,patients, constituents and partnersall want one thing: superior service.Did you know that enterprises focused on creating digitalexperiences grow revenue 1.4 times faster than companieswho aren’t?1However, we found in our first annual Innovation Index study that:260% of executives believecustomers’ wants and needschange too quickly to providehigh-quality experiences.Only about 40% considerdigital experiences to becritical to satisfactionand loyalty.Over half say their datagovernance doesn’t supportthe innovation needed to createthose stellar experiences.Your organization will have to find ways to overcome these challenges toacquire, engage and retain customers and develop lifetime customer value.HOME TRUSTED DIGITAL EXPERIENCES SUCCESS IS POSSIBLE GET MORE INFORMATION
To grow and create customer lifetime value,today’s business leaders must be able to attractcustomers and grow employee engagementthrough trusted digital experiences that arepersonalized and deliver on the brand promise.Lisa Woodley, Vice PresidentDigital Experience, NTT DATAHOME TRUSTED DIGITAL EXPERIENCES SUCCESS IS POSSIBLE GET MORE INFORMATION
Growth and customer loyalty depend ontrusted digital experiencesCustomers expectpersonalizationCustomers expecta frictionlessexperienceCustomers expecttheir information tobe protected“Know me andwhat I want”“Give me what I needwhen I need it”“Don’t violate my trust”HOME TRUSTED DIGITAL EXPERIENCES SUCCESS IS POSSIBLE GET MORE INFORMATION
Personalization is the growth differentiatorLess than one-third of the organizations surveyed in our InnovationIndex say delivering personalized products or experiences is aprimary component of customer satisfaction and loyalty. And of allthe critical factors that drive customer satisfaction, personalizationranks low in importance, with only 32% of respondents sayingCustomers expectpersonalizationthey’re highly effective at using personalization.But an elite group (6%) of leaders use artificial intelligence (AI) —internet of things and predictive analytics — to improve thecustomer experience by supporting customer-facing processes andservices. And it’s paying off. These leaders are 35% more likely to6% of elite leaders are 35%more likely to report annualrevenue growth of 5%report annual revenue growth of 5%. They’re also more likely ingeneral to expect continued growth over the next two years.HOME TRUSTED DIGITAL EXPERIENCES SUCCESS IS POSSIBLE GET MORE INFORMATION
Apps are just the starting point for improving experiencesCustomers today want speedy, friction-free personalized service at theirfingertips, and organizations are responding. Our study shows thatspeed of service and quality are the top two critical factors forensuring customer satisfaction.Customers expecta frictionlessexperienceAlmost 60% of organizations that have adopted mobile apps say theysee value in improving experiences. And those planning to implement amobile app believe customer satisfaction is the biggest reason to do so.However, in a hyperconnected world, web and mobile applications areAlmost 60% of organizationsthat have adopted mobileapps say they see value inimproving experiences.just the starting point. Your organization will need to be ready to delivercontinuous experiences that straddle multiple digital touchpoints,devices, platforms and in-person experiences. And each must beintegrated with enterprise apps across your partner ecosystem todeliver a secure, seamless and continuous experience.HOME TRUSTED DIGITAL EXPERIENCES SUCCESS IS POSSIBLE GET MORE INFORMATION
Data usage, privacy and security are table stakesCustomers want you to know them and serve them personally, and thatrequires data. However, a large majority won’t do business with yourcompany if they don’t trust you to be responsible with their data.Customers expecttheir information tobe protectedOur research reveals that 95% of organizations are either somewhat orhighly effective at maintaining trust in privacy and security. Andprotecting customer data continues to be a top priority.But challenges remain. Only 24% of respondents say they’re highlyeffective at sharing data with partners and 30% believe the data theyOur research reveals that95% of organizations areeither somewhat or highlyeffective at maintaining trustin privacy and security.collect from customers is useful. While nearly one-third say a growingunwillingness by customers to share their information is a challenge toeffectively using that data to improve experiences.HOME TRUSTED DIGITAL EXPERIENCES SUCCESS IS POSSIBLE GET MORE INFORMATION
Delivering experiences that matter isn’t easyIn our research, 66% ofexecutives say increasingcustomer satisfaction is theirnumber one priority — withgrowth and customers drivingthe reason behind thisoperational change.And by 2023, more than 60%of all customer serviceHowever, only 4 out of 10 organizations say they’re highlyeffective at delivering digital experiences, speed, serviceflexibility and personalization.engagements will bedelivered via digital and webself-service channels.HOME TRUSTED DIGITAL EXPERIENCES SUCCESS IS POSSIBLE GET MORE INFORMATION
But successis possibleYour organization can createtrusted digital experiences byassessing and understanding yourcapabilities to know customers andthen changing your culture, processand technology to deliver oncustomer requirements.To begin, keep this advice in mind:Understand thatdigital experiencesare for allPut yourcustomers first,technology secondConnect yourcustomer ecosystemfor real-time journeymanagementDouble down onactionable dataHOME TRUSTED DIGITAL EXPERIENCES SUCCESS IS POSSIBLE GET MORE INFORMATION
Understand that digital experiences are for allGone are the days where you can focus solely onmillennials, Gen Z and each new generation when itcomes to digital customer experiences. The pandemichas shown us that consumers of all ages are now gettingonline for telehealth visits, food and grocery deliveries,and streaming services. That means all your customers,not just those who are digitally savvy, expect a much morecustomized, personalized experience moving forward.HOME TRUSTED DIGITAL EXPERIENCES SUCCESS IS POSSIBLE GET MORE INFORMATION
Put your customers first, technology secondToday, one-to-many experiences need to feel like aone-to-one relationship, and unfortunately, technology can’timprove a bad customer relationship. Customers expect andprefer to do business with companies that not onlyunderstand their likes and dislikes but also share theirvalues. Like any relationship, you need to empathize,understand and anticipate your customers’ needs.Technology is a tool; it should help you accomplish yourgoals and enhance your customer relationships, not justenable separate human interactions.HOME TRUSTED DIGITAL EXPERIENCES SUCCESS IS POSSIBLE GET MORE INFORMATION
Double down on actionable dataKnowing your customer has never been more important fordelivering hyper-personalized experiences — and dataserves as the critical foundation. However, data is simplynoise if you can’t use that data in real time to understandand quickly deliver on your customers’ motivations andneeds during digital experiences. Speed, as well as qualityproducts and services are critical. To improve customerlifetime value, you must accelerate the pace of turning datainto knowledge and knowledge into action.HOME TRUSTED DIGITAL EXPERIENCES SUCCESS IS POSSIBLE GET MORE INFORMATION
Connect your customer ecosystem for real-timejourney managementAlmost half of all customers say a seamless experienceacross all devices and channels is a top expectation.4 Todeliver the data-driven, hyper-personalized (Amazon-like)experiences your customers expect — in the engagementchannel of their choice — you need technology. Technologies,such as machine learning-driven data platforms and digitaltwins, as well as enterprise CRM applications, can help youbetter understand your customers and, more importantly,connect your customer ecosystem to provide real-time,360-degree customer journey management.HOME TRUSTED DIGITAL EXPERIENCES SUCCESS IS POSSIBLE GET MORE INFORMATION
“Digital-first organizations that stay laser focused oncustomer experience while keeping pace with rapidlychanging customer expectations will win the day.To support those strategies and create seamless andfrictionless experiences organizations must prioritizepersonalization, use data insights and AI to informexperience delivery, as well as modernize theirapplications strategy.”Lisa Woodley, Vice PresidentDigital Experience, NTT DATAHOME TRUSTED DIGITAL EXPERIENCES SUCCESS IS POSSIBLE GET MORE INFORMATION
Sources1Forrester. “The Business Impact of Investing in Experience.” Commissioned by Adobe. August -cx.pdf2NTT DATA and Oxford Economics. “Innovation Index: Digital Strategies for an Era of Constant Disruption.”November 2021. x3Lawrence Cheok and Daniel-Zoe Jimenez. “IDC FutureScape: Worldwide Future of Customer and Consumer2022 Predictions.” IDC. December 2021. https://www.idc.com/getdoc.jsp?containerId AP473822214Wunderman Thompson Technology. “Experiences Customers Want.” September eriences-customers-wantVisit nttdataservices.com to learn more.NTT DATA Services is a recognized leader in IT and business services headquartered in Texas. A global division of NTT DATA — a part ofNTT Group — we use consulting and deep industry expertise to help clients accelerate and sustain value throughout their digital journeys. 2022 NTT DATA, Inc. All rights reserved. 0000022022 760446-Federal-Health-and-Civilian-Fact-Sheet.indd Rev. 1.0Get more information Learn more about our InnovationIndex research Get additional insights andperspectives on customer experience Find out how we solve customerexperience challenges
management Double down on actionable data But success is possible Understand that digital experiences are for all Your organization can create trusted digital experiences by assessing and understanding your capabilities to know customers and then changing your culture, process and technology to deliver on customer requirements.
