To better understand digital customer experience (DCX) through the eyes of both consumers and business leaders, Capgemini Digital Transformation Institute conducted a global survey in 2017 that polled 3,300 consumers and 600 executives from sectors including utilities, consumer products, retail banking, retail, and internet-based services.  The analysis discovered the critical need for businesses across all industries to deliver a differentiated digital customer experience.
Our research suggests that 80% of consumers are willing to pay for a better experience and organizations that deliver a less-than-satisfactory DCX could lose about 10% of wallet share. Moreover, even those firms that offer decent customer experience leave about 14% of extra value on the table when they fail to drive further DCX improvements.
So, how does a firm differentiate customer experience?
The key is mapping and connecting the goals of the consumer and the business at key points in the relationship lifecycle. If practices and processes are in place at critical stages of the relationship lifecycle, a consumer will rise from brand awareness and eventually move to brand advocacy.
A company’s goals and customer journeys come together throughout the customer lifecycle. Therefore, it is vital to define business goals at each customer moment of truth so that a memorable customer experience is consistently delivered. Firms that strive to deliver better customer experience must align their business goals with all customer touchpoints.
Business goals and customer journeys come together throughout the customer lifecycle
Best practices and use cases by sector
Retail banking best practices:
- Run marketing campaigns that encourage customers to use digital channels.
- Target offers and incentives via digital-only channels.
- Use digital channels to encourage customers to digitally refer friends and family.
Retail banking use cases: The personal finance arm of a large multinational bank dedicated a strategic program to define its new omnichannel, self-care service model. The three-country pilot increased customer satisfaction by 5% and reduced cost-to-serve by 10%.
Citi India, Citigroup’s Indian subsidiary recently launched a voice-based biometric authentication system for its customers. The system can recognize customers by their voice in the first 15 seconds of conversation, a significant reduction from the current average time of around 45 seconds. With the adoption of this new method, Citi India hopes to improve customer experience and at the same time save nearly 100,000 customer call hours annually.
Retail best practices:
- Leverage the potential to personalize each customer’s products and services online or on mobile.
- Use customer data to predict any changes in consumer behavior and provide tailored offerings.
- Launch new IT initiatives to enhance customer experience on digital channels.
Retail use case: As part of its omnichannel strategy, one of the world’s largest home-improvement retailers developed an app to feature more than 500,000 products. Customers responded positively to their improved mobile experience and access to additional services. The DIY retailer built a contextual view of its consumer, which helped to increase both app traffic and revenue.
Consumer products best practices:
- Have the potential to personalize products and services for each customer.
- Provide loyalty points/incentives for customers to use digital channels.
- Grant users control over viewing, editing, and removing their personal or sensitive data.
Consumer products use cases: Proctor & Gamble’s skincare brand, Olay, designed and launched an artificial-intelligence-powered platform (Olay Skin Advisor) to help women better understand their skin and while offering a personalized regimen with product recommendations by skin type. The platform successfully delivered personalization and improved customer experience.
To align customer experience with business strategy, transnational food and drink company Nestlé works to consistently inform consumers about all the data it collects online so that customers can control the data and access to it. The practice stems from customers’ potential concern about data security and privacy.
Utilities best practices:
- Enable a seamless cross-channel experience to improve DCX.
- Make mobile the default channel in customer experience strategy.
- No longer offer certain products and services through physical channels.
Utilities use case: One of the world’s largest electricity producers revamped its digital properties to allow consumers to make and manage payments online. It also launched innovative features such as empowering consumers to track their monthly electricity consumption.
Insurance best practices:
- Offer customers omnichannel facilities during research and policy purchase, especially with customers increasingly looking for omnichannel options as per the World Insurance Report 2018.
- Leverage digital tools and innovative mobile apps in the claims stage to expedite claims processing and payout.
- Augment customer service with digital channels and technologies such as chatbots to enable anytime, anywhere service support to customers.
Insurance use case: Allstate’s QuickFoto Claim lets policyholders send in pictures of their damaged vehicles and receive estimates electronically, saving them the trouble of visiting a repair shop or adjuster for auto claims. Aetna uses Twitter to address customer concerns and queries, supplementing it with phone communication when necessary to protect privacy.
In today’s world when customer preferences and expectations are evolving rapidly, customer engagement and compelling CX are becoming more and more critical. Active and real-time customer engagement has the potential to bring in long-term business gains. Now is the time for industry leaders to redefine their customer engagement model – and stay relevant – by leveraging the latest digital technologies to remain competitive in a fast-evolving marketplace.
 Capgemini Digital Transformation Institute, The Disconnected Customer: What digital customer experience leaders teach us about reconnecting with customers, 2017.
 Consumers from Australia, China, France, India, Germany, Netherlands, United Kingdom, and the United States were polled.
 “Start Your Claim In A Snap,” accessed April 2017 at https://www.allstate.com/claims/quick-foto-claim.aspx
 “‘Aetna, I’m Glad I Met Ya!’ – On Twitter,” Ankita Rao, August 09, 2013, accessed April 2017 at http://www.npr.org/sections/health-shots/2013/08/09/210474766/aetna-im-glad-i-met-ya-on-twitter