Why Customer-Focused Enterprises Must Embrace Digital Experience Monitoring?
“Companies that use technology to advance and elevate customer experience are the ones that will win,” expressed Mila D’Antonio of Omdia at the 2022 Enterprise Connect event.
With the advent of digital tools and technologies, customers now have access to multiple digital touchpoints, including mobile apps and web applications. Recent studies show that nearly 90% of consumers are more likely to make a repeat or subsequent purchase after a positive customer experience (CX). As enterprises reach out to a larger customer base, they must learn to provide a seamless digital experience (DX) across all touchpoints.
Yet, even customer-focused enterprises often find it challenging to fulfill their customer’s expectations. Along with poor performance, organizations face DX-related challenges such as a lack of powerful insights, complex interactions, and a lack of digital adoption. Other factors that impact the user experience include:
- Unavailability of multiple customer touchpoints to purchase any product or service
- Errors or disruption during customers’ interactions with digital touchpoints
- Poor app performance that impedes customer interaction
How does poor DX impact customer-centric enterprises – and how can they overcome these challenges? Let’s discuss.
How DX Impacts Customer Satisfaction
In a crowded marketplace, organizations need innovative technologies to capture the attention of their audience and translate that into a higher market share. Hence, the digital experience is now a powerful tool in the business domain.
A digital experience revolves around many factors, including:
- Meeting or adapting to customer expectations
- Creating a consistent CX across all digital channels or customer touchpoints
- Investing in the right innovative CX and DX solutions
A McKinsey consumer survey found that brands with extensive digital offerings achieved a higher consumer satisfaction score. The survey observed this trend even in “digitally traditional” industries like health insurance and healthcare. In fact, customer-centric organizations that invest in DX and CX technologies were able to:
- Improve customer satisfaction by 15-20%
- Reduce costs by 20-40%
- Boost conversion rates by 20%
The same McKinsey survey also found that consumers (across industry domains) are more likely to recommend companies offering more digital services.
Similarly, a Qualtrics XM survey on DX metrics found that an increased customer satisfaction score can increase their spending by 37%. By reducing the effort in completing an online task, companies could boost consumer spending by 23%.
On the other hand, poor DX can impact business revenues across industries. According to the Qualtrics XM survey, revenue loss was the highest at 17.93% in the automotive industry. This was followed by health insurance at 13.78% and travel at 10.43%.
Despite its importance, most organizations find it challenging to measure their DX performance due to outdated technologies. This is where Digital Experience Monitoring (DEM) can make a difference. Next, let’s discuss DEM and how it can make an impact.
Importance of Digital Experience Monitoring (DEM)
Digital Experience Monitoring is effectively the combination of Application Performance Management (APM) and End User Experience Monitoring (EUEM). While APM monitors application performance, EUEM analyzes the user experience within any application.
Gartner defines DEM as “an availability and performance monitoring discipline” that helps optimize a digital agent’s operational experience and behavior “as it interacts with enterprise applications and services.”
Why is DEM important in the context of customer experience? Well, DEM is primarily based on the following four elements:
1. Reachability
This element monitors if end users can access the hosted application. If not, then what are the reachability issues that are preventing them from accessing the application?
2. Availability
This DEM element monitors if end users (or customers) can seamlessly engage or interact with the application. Availability is often impacted by reachability.
3. Performance
Performance monitoring is important as most users are frustrated by slow applications. It is the key ingredient for ensuring continuous improvement.
4. Reliability
A reliable application is key to delivering optimum performance, availability, and reachability.
In effect, a DEM solution helps in quantifying the digital experience from the end user’s perspective. As a real-time monitoring tool, DEM helps identify any application vulnerabilities resulting in higher downtime, outages, or disruptions to the user’s experience. Additionally, DEM tools can determine the “root cause” of performance issues and provide optimum solutions.
The Bottom Line
In the digital age, customers or end users interact with brands through multiple touchpoints. Customer-focused enterprises can no longer undermine the importance of providing an optimum digital experience to their customers.
appNeura is a product venture of Application Performance leader Avekshaa Technologies. The company has pioneered a range of solutions in application performance engineering. Powered with AI and machine learning technology, appNeura offers deeply functional products in the DEM space. Our DEM solution provides end-to-end actionable insights that overcome challenges like:
- Lack of visibility into CX initiatives
- Customer dissatisfaction
- Brand erosion and loss of revenue
At appNeura, we believe in the customer success formula of “Happy Customers + Loyal Customers = Increased Business.”
We can help you leverage the capabilities of Digital Experience Monitoring. Interested in learning more? Contact us today.