2023 Business Transformation Trends To Leverage For Innovation
Written by: Zuleka Kaysan, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
Get ahead by planning and preparing for the business transformation trends in 2023. How could implementing these innovative ideas accelerate the growth of your business?
A business’ success is shaped by how efficiently it works (the internal dimension) and how well it meets customers’ needs (the external dimension). No matter the industry or size, leadership teams will have to focus on these key areas in 2023 as a digital advantage, through data analytics and enhanced customer experience, takes centre stage.
These two dimensions complement each other and foster growth at the company and industry levels. Maximising the use of data analytics ensures businesses continue to thrive despite the economic volatility and political uncertainty expected in the upcoming year. This, in turn, creates an undeniable competitive advantage – customer experience is a deciding factor for 73% of consumers.
So, how can business leaders leverage data analytics and enhance the customer experience in the coming year?
Data analytics trends in 2023
Data-driven companies are driving out non-data-driven companies due to the entirely new value proposition they can offer. For example, the deep learning models of ChatGPT and Dall-E use AI to automate conversational chatbots and digital image generation, respectively. These advancements start with strategic action to become data-driven and maximise analytics.
Data-driven companies are investing in the following transformations.
Broadening data collection beyond the obvious
Data analytics will change as consumer privacy and consent are prioritised to prevent data exploitation. By mid-2024, two significant changes will be implemented: Google will no longer support third-party cookies on Chrome, and the EU will extend its GDPR legislation. This will essentially ban third-party cookies and require conscious consent.
Companies will implement an advanced technology stack to collect strategy-informing customer data. They will also explore tools that broaden the way they collect data, allowing them to generate a rounded and in-depth picture of their customers. For example, using motion and time signals to track the use of apps and websites to show the user’s journey. This gives insights into how content is consumed and, more importantly, where consumption stops.
Leaders will benefit from data analytics products that already exist in the market; these products make data analytics accessible, not just to experts, enabling widespread adoption.
Using data analytics to weather uncertainty
There has been no lack of uncertainty in the past few years, and this is unlikely to stabilise. Hence, businesses need the agility to adapt to disruptive changes. To enable this, companies will transform the way they use data analytics. Building on the collection and analysis of past data to measure previous success, data analytics can now be used to expect the unexpected.
Leaders will consciously move to:
Leverage predictive analytics to generate insights into future events, and
Implement prescriptive analytics – to develop solutions to minimise the disruption caused by those events before they happen.
With data-driven predictions of the challenges that need to be navigated and data-driven decisions on how to weather them, businesses are much more likely to survive and thrive during uncertain times.
Increased use of AI and Machine Learning
With technological advancements, much of the data analytics process can be done for us. This accessibility is driven by the use of artificial intelligence and machine learning.
Advanced tools that leverage analytics are becoming mainstream. Dall-E, for example, has over 1.5 million users generating 2 million digital images a day using its AI and machine learning capabilities. Another example is ChatGPT which had over 1 million users days after its launch asking the chatbot questions and receiving informed and conversational responses.
While new tools aren’t perfect and will continue to go through stages of development, companies that use them move faster than those that don’t. Early adopters reap the most benefits from cutting-edge technology.
Customer experience trends in 2023
Technological developments are impacting customer experience too. Globalisation and digitalisation mean consumers have more options to choose from. Compounding this competitive environment is the economic and financial instability causing consumers to be cautious about where they spend their money.
To achieve a competitive advantage, businesses must deliver a high-quality customer experience. How can companies create a stand-out customer experience?
Amplifying the customer experience
Optimising the purchasing experience will be prioritised because immersive, omnichannel and self-service experiences are in demand.
Companies will focus their efforts on using digitalisation to enhance the customer experience. 6th Street’s phygital store is one current example; they offer interactive digital selection and virtual try-on capabilities alongside a physical test and try-on of products. This digital experience complements the in-person purchasing process by removing typical sticking points, such as long queues and limited inventory, while providing the ease and accessibility of digital shopping.
Behaviour-led marketing
Behaviour-led marketing will overtake demographic-based marketing. This is because broad-brush demographic categories with pre-defined assumptions can be, at best, limiting and, worse, entirely inaccurate.
Leaders will leverage the data analytics already available to the business to optimise and personalise the customer experience. Data about prospects’ behaviour will be interpreted to understand buying signals and the messaging that will resonate with them at a given point in time. Their behaviour gives businesses much greater insight into their wants and needs.
Holistic human-centricity
The fact that 82% of consumers want more human interaction suggests prospects prefer personalised experiences. Customers are frustrated with over-automation and the proliferation of chatbots, leading to a disappointed customer base. In fact, 72% of people find chatbots a waste of time.
Companies will transition to the humanisation of digital touchpoints through a purpose-built AI solution where avatars talk customers through their issues. This will be built on a constantly evolving knowledge base of common questions and sticking points. In the interim, leaders will employ a balanced mix of automated and human customer service that responds to queries in real-time and re-directs to a person for more complex queries.
In 2023, innovation will be focused on two key areas ‒ data analytics and customer experience. Data analytics unlocks opportunities for improving trust through transparency, predicting and preparing for changes in advance, and getting the entire company focused on achieving business goals. Customer experience is a competitive advantage when digital is leveraged; marketing is led by behavioural signals, and people are treated as humans, not numbers.
How will you use these trends to elevate your business?
Zuleka Kaysan, Executive Contributor Brainz Magazine
Spurred by her 18-year career delivering business transformation and change in fast-moving corporations with ambitious mandates, Zuleka Kaysan founded The Cornerstone Advisory - to empower tech and service-based businesses at each stage of their growth. She helps visionary leaders elevate their performance through an integrated approach; enhanced customer experience, innovative service design, and a fit-for-purpose culture. Her mission: to bring ideas to life.
