Does Digital Transformation Impact Customer Experience?

Abstract

Nowadays, customers are expected to digitize their operations, and they start their journey anywhere, anytime, and from any device; they use multiple communication channels to interact with a business. Providing superior customer experience is considered a consumer-based strategy for attracting and retaining customers, and the customer experience plays a crucial role in digital transformation. To move the field forward, the purpose of this chapter is to review the literature on customer experience and develop a set of fundamental premises that identify the linkage between digital transformation and customer experience. The findings of this study provide guidelines for further research and make contributions towards new knowledge of how firms and brands can provide effective customer experiences.

From interaction to immersion: Technology's impact on customer experience in the digital era

“…Digital transformation has been identified as a critical factor in enhancing customer experience, with technology acting as both a catalyst and a facilitator for change. Studies have shown that digital transformation significantly impacts customer experience by enabling more personalized, efficient, and engaging interactions [1] . The integration of digital technologies in business operations has not only streamlined processes but also opened new avenues for customer engagement and satisfaction [2] .…”

“…The selection of literature for this review was guided by the relevance to the central themes of digital transformation and customer experience. A total of 12 papers were meticulously chosen based on their contributions to these topics, ensuring a diverse range of perspectives and findings [1][2][3][4][5][6][7][8][9][10][11][12] . These papers encompass various aspects of digital transformation, including its impact on customer experience, the tools and technologies used, and the challenges and opportunities it presents.…”

“…These AI systems learn from each interaction, continuously improving their ability to handle complex queries and offer personalized recommendations based on individual customer preferences and past behaviors. This not only enhances customer satisfaction but also optimizes resource allocation by automating routine tasks [1] .…”

“…As these technologies evolve, we can expect AI to offer more nuanced and human-like interactions, further personalizing the customer experience. Machine learning algorithms will become more adept at predicting customer preferences and behaviors, enabling businesses to offer hyper-personalized experiences [1,4] .…”

What are the essential elements of a digital transformation process to develop an efficient digitization strategy for management?

“…Second, customers today have higher expectations for digital experiences and companies that fail to deliver risk losing their customers to competitors. Digital transformation can help companies create seamless, personalized experiences that meet and exceed customer expectations (Shabani shojaei, 2022). Third, digital transformation can help businesses streamline processes, automate tasks and eliminate manual work.…”