Why Digital Transformation is Key to Growth
You’ve probably heard the term so many times that you dismiss it as a buzzword. There’s a good reason for that; it’s been overused and its definition varies and continuously evolves. Ask ten people what a digital transformation is and how to achieve one and you’ll get 10 different answers.
In this article, we debunk some of the untruths, pull back the curtain, and shed some light on the mission-critical business gains that digital transformation can support.
What a digital transformation is and isn’t.
People sometimes refer to any upgrade in technology as a “digital transformation.” But that’s not exactly the case. While it’s true that constantly upgrading technology offers a competitive advantage and helps you keep pace with customer demand, adopting new tech is only one part of the process.
A true digital transformation actually includes 3 components:
- updated technology
- optimized customer experience
- cultural maturity within the business
You’re probably wondering how you obtain that trifecta. Keep reading.
Why jump on a digital transformation?
First, let’s start with the “Why” of digital transformation. A digital transformation strategy is critical to business success because it lets you a) harness the power of integrated data, b) improve customer experience, and c) develop long term business processes that can scale in the digital age. Who doesn’t want that?
Tactically, a digital transformation can also optimize the following business initiatives.
According to a 2019 Forrester survey, 73% of customer experience (CX) professionals working in financial services, utilities, and telecom industries understand that people prefer a hybrid of human and digital interactions. 84% agreed that a hybrid model of CX builds brand loyalty.
Digital maturity and growth
Digital transformation facilitates the maturity of the business. According to Forrester, the most successful organizations treat technology as a business asset, invest in emerging tools and applications, and are 4X more likely to grow 10% or more per year than less digitally-savvy peers.
So why the resistance?
There are a few reasons why some organizations are still reluctant to jump on board. Maybe you’ve experienced them firsthand.
Digital transformation is still perceived as prohibitively expensive.
Changing your whole integrated stack to digital or upgrading legacy technology can be expensive at first, but will pay off in the long run. Yearly maintenance of equipment, not to mention the FTE it takes to operate and manage on-prem servers can often add up to way more over time than the one-time cost of digital migration.
To maximize your investment, incorporate automation, and reinvest the money it saves in a continual iteration.
Entrenched viewpoints and resistance to change undermine the necessary cultural shifts.
The reason many businesses finally transform is that their current system can no longer compete. By that time, though, it can be very difficult, even impossible, to catch up. According to the MIT Sloan Management Review, the best way to overcome entrenched viewpoints is to identify and eliminate practices that come from outdated cultural values.
Some cultural shifts that management needs to support include:
- Shifting from prioritizing flawless execution to valuing more agile learning and experimentation;
- Fostering true collaboration;
- Focus more on future development than past performance.
This goes for evaluating processes and workflows as well as employee performance.
Legal and compliance concerns.
The many, complex, and ever-changing regulations for outbound consumer communications can seem daunting. Investing in court-tested compliance tools that are integrated into agent dashboards for both voice and SMS channels mitigates compliance risk.
Lack of strategic alignment among stakeholders.
For large enterprise companies especially, being nimble can be a challenge. Like changing the direction of a cargo ship, getting buy-in for company-wide course-corrections can be a slow process. For a digital transformation to be successful, senior leadership has to be completely on board. To do this, try to steer clear of emotionally-driven conversations and instead rely on the facts. How can you incorporate data to prove your theories? Are there other departments already leveraging tools or processes that are similar? Can you get them to speak to the positive ROI they’ve seen?
The Stages of a Digital Transformation
1. Take it slow.
As with any transformation, use a systematic process:
- Assess – Take stock of where you are.
- Benchmark – Research what is working for others.
- Strategize – Develop a clear picture of where you want to go.
- Plan – Make a step by step plan to get there.
- Allocate – partnerships, budget, and whatever resources you determine are needed for execution.
2. Implement the technology
Start with a platform that has native channel integration, strict consent management, and is customizable enough to scale at your pace.
Under the hood, agents should be able to track customer behavior and managers should be able to track agent performance.
Customers should be able to choose IVR, automated self-service, knowledge bases and AI-powered chatbots. They should be able to shift between preferred channels without any gaps in communication. Your technology should allow you to offer 24/7 real-time customer service, minimal wait times, personalized interactions, built-in consent management.
3. Build the culture
For a true digital transformation, businesses transform their internal culture.
A recent Harvard Business Review article alerted business leaders that the better the environment for contact center agents, the better the outcomes for customers.
With strategic alignment among stakeholders, the right tech in place, and a company culture that supports innovation and experimentation organizations can be proactive about anticipating and preventing customer problems from occurring and build brand loyalty. As a digital transformation initiative succeeds, you’ll see lower agent attrition costs, higher transaction conversion rates, and many other positive customer outcomes.
LiveVox is a leading provider of enterprise cloud contact center solutions, managing more than 14+ billion interactions a year across a multichannel environment. With over 15 years of pure cloud expertise, we empower contact center leaders to drive effective engagement strategies on the consumer’s channel of choice. Our leading-edge risk mitigation and security capabilities help clients quickly adapt to a changing business environment. With new features released quarterly, LiveVox remains at the forefront of cloud contact center innovation. Supported by over 450 employees and rapidly growing, we are headquartered in San Francisco with offices in Atlanta, Denver, Bangalore, and Colombia. To learn more, schedule a demo today.