CIOs step up in the new battleground for business growth –- the customer experience.
The numbers impress. According to KPMG’s “The customer-centric CIO,” every person will create 1.7 MB of data every second by 2020. Within the next two years, 80 percent of organizations will look to complete mostly or completely on the basis of customer experience (CX). The companies that will win the competition will be those with chief information officers (CIOs) who push CX to the top of their IT agendas.
Once limited to back-office development, the CIO is now a driving force in the business. Customers seek a personalized experience online, whether that includes receiving a coupon for their favorite pastry at their local bakery or filing out an insurance claim at the spot of a fender bender. Despite proven results that customer-centric organizations are more likely to report greater profitability, less than a quarter of CEOs say they are currently exceeding customer expectations for a personalized experience, according to KPMG’s 2018 CEO Outlook Survey.
This is where CIOs can shine as owners of the data that will enable the company to personalize customer interactions.
Embracing a new role in the business
CIOs will make the biggest impact on CX in these four areas:
By optimizing data, businesses will understand their customers’ motivations and behaviors, and invest in an experience more strategically. The CIOs and IT departments can help the rest of the company leverage the data to know customers beyond their basic identifiers and engage them on a more personal level.
Companies derive customer-centric growth from employee-centric environments. One study found that in a single year, a five-point increase in employee engagement yielded a three-point increase in revenue growth. However, employee-centric environments rely upon multiple factors, including the right technologies, an agile service delivery model and implementing intelligent automation. CIOs also need to consider making the right investments in people and talent upskilling where possible.
In this new expanded role, CIOs assume leadership of the business’ technology environment, which have been owned by marketing, sales and service in the past. However, the wrong infrastructure can lead to “tech debt,” or under-investment in technology that prevents a company from achieving its customer-centric agenda. With the right knowledge and expertise, the CIO can work to future-proof the architecture and stay current with the latest solutions, such as automating tools, apps and data. By empowering the technology and the people, the CIO also empowers the customer to engage effectively with the company and enjoy a customized experience.
Evolving the customer experience
The CIOs job is never done, and after helping to transform the business into a customer-centric enterprise, the CIO will play a pivotal role in improving the CX. By harnessing technology to capture useful data, turning that data into customer insights, and then leveraging this information to create custom-made user experiences, the CIO should approach every customer-facing solutions with proactive questions.
Some questions CIOs should be asking are:
The answers will enable IT to deliver a customer agenda that will continue to evolve with the customer’s wants, needs and preferences.
Research supports that organizations who deliver seamless, responsive and coherent CXs yield higher revenues, so CIOs need to take charge today to innovate their business for tomorrow. KPMG’s advisory professionals work alongside organizations on their CX and help companies deliver a seamless, responsive, relevant and consistent experience that will foster greater loyalty and revenue.
Learn more reasons why you should move CX to the top of your IT agenda in “The customer-centric CIO.”