Mid-size Companies Slow to Digitize Customer Experience Are Leaving Growth Opportunities on the Table

Hal Conick
Marketing News
Current average rating    
Key Takeaways

​What? Middle market companies are slow to digitize their customer experience, even as most say it’s a top concern.

So what? Only 34% of middle market companies say the digital experience of customers is a critical part of business strategy.

Now what? Middle market firms should continue to work toward end-to-end omni-channel digitization of the customer journey.

​Nov. 15, 2017

Only a third of middle market companies have made customer experience digitization a priority, and those that have see revenue and employment grow at a faster rate

 

Middle market companies are lagging on digitizing the customer experience, according to the National Center for the Middle Market’s “Digitizing the Customer Experience: Are We There Yet?” report.

The report finds that 38% of middle market companies claim to be highly effective at customer experience digitization, and 12% have a “truly omni-channel end-to-end digital experience on all platforms.” 

However, only 34% of middle market companies say customer experience is a critical part of their overall business strategy, even as 70% say customer experience is a top concern for businesses.

This slow integration is a problem, the NCMM report says, as technology is reshaping the customer experience across the customer journey.

“From the way we buy and sell everything from houses to hamburgers, it seems there’s an app for that,” the report says, noting that nearly all middle market firms believe that digital solutions have had a positive effect on business.

Currently, middle market firms sit in four different clusters of digital advancement, per NCMM:

  • 21% are “Digitally Strategic,” or firms that embrace the customer experience and digitization.

  • 26% are “Digitally Advanced,” or firms that have a corporate strategy for digitization and believe technology is transforming both their business and the industry.

  • 32% are “Digitally Reactive,” or firms that have a reactive versus proactive approach to technology.

  • 21% are “Non-Digital,” or firms that have not invested any money in customer experience digitization. 

 

 Digitizing the customer experience: Firuzan Iscan of Allianz

 

In fact, digitally strategic firms the NCMM studied have found better footing in the technological terrain of 2017. Digitally strategic firms grow at a faster rate than the average middle market company, the report says:

  • ​Digitally Strategic firms saw 10% year-over-year growth in revenue and 4.6% year-over-year growth in employment. 

  • Non-digital middle market firms saw 4.7% growth in revenue and 2.7% growth in employment.

  • Digitally advanced firms saw 6% growth in revenue and 3.1% growth in employment. 



“What is clear is that there remains enormous opportunity to profit from customer-experience digitization,” the NCMM report says. “In no area of digitization do companies believe they have captured more than half of the full potential benefit. Even among the digitally strategic firms, only about a quarter have achieved end-to-end omni-channel digitization.”


Related Articles:
AMA PCM Digital Marketing Exam What Makes Online Content Viral? Research Shows It's Anger, Shock and Awe.  Half of B-to-B Marketers Say Content Marketing is Wasted on Sales Departments

AMA PCM Digital Marketing Exam

What Makes Online Content Viral? Research Shows It's Anger, Shock and Awe.

Half of B-to-B Marketers Say Content Marketing is Wasted on Sales Departments


Author Bio:

https://auth.ama.org/PublishingImages/hal-staff-photo.jpg
Hal Conick
Hal Conick is a staff writer for the AMA’s magazines and e-newsletters. He can be reached at hconick@ama.org or on Twitter at @HalConick.
Add A Comment :
 

Become a Member
Access our innovative members-only resources and tools to further your marketing practice.