How To Navigate Digital Transformation

0
How To Navigate Digital Transformation

Hamid Farooqui is a serial entrepreneur, cofounder and CEO of experience management company Sogolytics and CTO of K12 Insight.

These days, for better or worse, we’re often more connected online than offline.

On the personal front, online connections are fast, asynchronous and efficient. We can have lunch delivered and groceries ordered without ever speaking to another human being.

But be honest: Do you build better relationships online or offline? Is efficiency the key variable here, or is it quality? For folks who travel for hours just to share a meal with friends, family and colleagues, the answer is obvious.

As a business leader, it’s critical to consider how to combine both quality and efficiency in building lasting relationships with customers and employees—both online and offline.

Embracing(?) The Digital Revolution

The digital transformation of society has led to the appearance of new businesses and models, challenging the status quo and delivering efficiency while working toward quality. While adoption may not be instant, our evolving relationships with companies like Uber and Airbnb indicate that it’s possible to build loyalty in completely new directions.

And yet, years into the digital revolution, many “offline” organizations are still struggling to figure out how to adapt their business models. Some have given up completely, giving way to online retailers or other competitors. Others have simply plodded forward with a business-as-usual approach that prioritizes in-person experiences and ignores any digital trends.

Most businesses, of course, are somewhere in the middle. They’re looking to take advantage of the power of digital tools and trends while building connections—all with the aim of inspiring trust and loyalty. Simple enough, right?

When Healthcare Goes Digital

One industry that had no choice but to embrace digital transformation is the healthcare industry. When the Covid-19 pandemic forced everyone into lockdown mode, providers everywhere scrambled for ways to serve their patients.

Beyond masking and barriers, many systems went digital. Telehealth visits more than doubled in March 2020, according to CDC data. Suddenly, many patients were able to experience a new way to receive personalized care in a safe and convenient manner.

As the pandemic waned, many patients continued to take advantage of telehealth services. A Sogolytics study found that post-Covid-19, patients often preferred telehealth to in-person visits due to flexibility in scheduling, reduced wait time and quick access to medical advice or prescriptions in emergencies.

And it’s not just convenience—quality was improved, too. The same study showed that 84% of patients were satisfied with their telehealth experience, with 75% continuing telehealth services beyond the first appointment.

The example of telehealth clearly illustrates the benefits of a digital innovation that improves access to quality personalized care while streamlining efficiency.

Digital Change In Financial Services

For many people, the only thing nearly as important as taking care of their health is looking after their money, so it’s no surprise that the financial services industry is working hard to provide outstanding experiences to retain market share—both online and offline.

Consider the example of mobile banking. Now, consumers can efficiently conduct a wide range of transactions from the convenience of their phones. Our 2024 study of consumer banking preferences showed that 47% identify banking on a smartphone as their top choice.

As a result, many employees who once served as tellers have moved into advisory roles, offering higher-quality personalized service to banking customers. This increased value-add may contribute to the slight uptick in consumers who prefer in-person banking in 2024—23%, up from 22% in 2023. Institutions that pride themselves on the quality of their community connections and core values, like credit unions, thrive when balancing the benefits of both human and digital engagement.

The Risks Of Digital Transformation

Let’s get this out of the way: Yes, there are risks associated with making major digital transformations. I have listed a few big pitfalls below.

• Everyone feels like a number. Scaling up is great, but not at the expense of making your consumers feel that they’re only valuable to you in bulk.

• Personal connections are lost. When you’re trying to transform from a place “where everybody knows your name” to a place that welcomes more customers, you need to ensure the personalized experiences endure.

• Loyalty drops. When consumers don’t feel that you’re standing by them, they’re less likely to stand by you.

• Tools fail. Technology doesn’t offer instant fixes—going digital doesn’t make everything better automatically—but bad technology can lead to instant disaster. Rushing to implement a quick resolution without due diligence can do more harm than good.

Consumer Loyalty Key Points

Thinking about rolling out a digital transformation while working to keep it human? Bear these tips in mind.

1. Listen to your customers to better understand their priorities.

2. Set priorities to tackle the most impactful areas and plan for strategic implementation.

3. Use digital tools and strategies to improve efficiency and track success through operational data.

4. Strengthen the humanity and quality of engagements to inspire connections and relationships and track success through perception data.

5. Regularly evaluate your program to adjust as needed.

Conclusion

Nothing can replace an in-person connection, but not every business requires human contact to be successful. Looking for opportunities to streamline efficiency in your workflows through digital tools, automation and AI can have transformative effects on your business—and free up your human resources to keep it human.


Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?


link

Leave a Reply

Your email address will not be published. Required fields are marked *