NTT DATA Research Reveals Leaders Are Challenged to Leverage Technology to Meet Changing Customer Needs
Only 4 in 10 organizations believe they are very effective at delivering the kind of personalized digital experiences needed to delight customers
PLANO, Texas, March 18, 2022–(BUSINESS WIRE)–NTT DATA, a leader in digital businesses and IT services, has released new insights from research developed with Oxford Economics, revealing that organizations that create personalized experiences are more likely to succeed. And yet, few leaders prioritize personalized digital experiences or understand its connection to customer satisfaction and loyalty.
The research, “Innovation Index: Digital strategies for an age of constant disruptionsurveyed 1,000 business and IT leaders from 16 industries to examine the external forces and digital trends driving their business. According to the results, 66% said improving customer satisfaction is their top priority. number one, but 57% believe their biggest challenge is delivering high levels of satisfaction – quality customer experiences is that customer wants and needs change too quickly.
“Your customers shouldn’t be a mystery to you,” said Lisa Woodley, Vice President of Digital Experience at NTT DATA Services. “If your customers’ wants and needs are changing too quickly, it tells us that you don’t know them very well to begin with. Organizations need to prioritize personalization using insights from data and AI to inform delivery of the experience, as well as modernizing their apps strategy.”
Only 39% of leaders consider digital experiences to be critical to satisfaction and loyalty, but 66% said increasing customer satisfaction is their number one priority, highlighting a disconnect between customer loyalty, digital experience and customer satisfaction.
Technology drives customer loyalty and satisfaction
Customers want fast, frictionless personalized service at their fingertips. The study shows that speed of service and quality are the two main critical factors in ensuring customer satisfaction. Mobile apps are particularly helpful in achieving this goal, with nearly 60% of organizations that have adopted mobile apps saying they see value in improving experiences. Additionally, 59% improved customer satisfaction and 15% helped increase customer loyalty through the use of mobile apps.
Loyalty, however, goes beyond mobile apps. Although emerging technologies have strong retention potential, the adoption of these technologies varies from leader to leader. For example, only an elite group of just 6% of leaders are using artificial intelligence (AI) – the Internet of Things and predictive analytics – to improve customer experience by supporting processes and services in direct contact with the customer. Research shows these efforts are paying off, with these leaders 35% more likely to report 5% annual revenue growth.
Data as an asset, privacy and security are table stakes
Protecting customer data continues to be a top priority, and 95% of respondents say their organizations are somewhat or very good at maintaining trust in privacy and security. But only 24% of respondents say they’re very good at sharing data with partners, which means they’re missing out on opportunities to create connected experiences and get more complete customer profiles through data sharing.
Data quality is another pressing concern many leaders face, with only 30% saying they think the data they collect from customers is useful. Additionally, nearly a third say that growing customer reluctance to share their information is a challenge to effectively using that data to improve experiences.
“Organizations that want to implement successful digital experiences need to focus on putting customers first, doubling down on actionable data, and connecting the customer ecosystem for real-time journey management,” said Lisa Woodley, Vice President of Digital Experience at NTT DATA Services.
To learn more about how organizations can create digital experiences that improve customer loyalty, sign up for Digital experiences: turning customers into your biggest fansa panel discussion featuring customer experience experts from NTT DATA, IDC, IndyCar and Penske Entertainment.
The full report highlights how business and IT leaders are using data to deliver digital experiences to their customers, as well as industry-specific insights for financial services, health plans, healthcare providers , insurers and manufacturers.
NTT DATA, in partnership with Oxford Economics, surveyed 1,000 business and IT executives across 16 industries in North America to find out how organizations are prioritizing digital transformation initiatives. The survey revealed mission-critical organizational priorities: data-driven decision-making, customer and employee loyalty, and leveraging technology to drive efficiencies that drive positive organizational results , including financial performance, customer satisfaction and productivity.
About NTT DATA
NTT DATA, part of the NTT Group, is a trusted global IT and business services innovator headquartered in Tokyo. We help our clients transform through consulting, industry solutions, business process services, digital and IT modernization, and managed services. NTT DATA empowers them and society to confidently step into the digital future. We are committed to the long-term success of our customers and combine global reach with local attention to serve them in over 50 countries around the world. Visit us at nttdata.com.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20220318005045/en/