Digital customer experience critical for manufacturing, construction

As industrial firms navigate economic uncertainties, the integration of advanced digital tools, in particular customer experience services, is proving essential for creating new revenue streams and maintaining a competitive edge – but they face the need to adapt or fade away, says a report from Deloitte.

Based on a survey of 250 senior executives in the US working in the industrial product manufacturing, aerospace and defence, and engineering and construction industries, the Future of the digital customer experience report examined how industrial product manufacturers and construction companies can enhance their digital customer experience (DCX) to boost organisational performance.

Deloitte stressed that the pace of digitisation has transformed traditional business models and operating processes for industrial product manufacturing, aerospace and defence, and engineering and construction companies. Despite economic uncertainty, companies across the globe have continued their investments in technology and push toward smart operations.

According to a 2023 Deloitte survey of over 800 manufacturers, 98% of respondents have started their digital transformation journey, compared with 78% in 2019, driven in part by the need to improve customer experience, optimise cost, develop or enhance existing products and improve operational efficiency.

Meanwhile, customer expectations have also evolved with the proliferation of personalised, seamless and omnichannel digital e-commerce experiences commonly found in business-to-consumer (B2C) interactions in the retail sector.

The report suggested that companies were working in a new normal of industrial DCX. Accelerated by the Covid-19 pandemic and digital technology proliferation, companies were deploying DCX tools to meet standards set in the B2C space. Some 86% of survey respondents wanted suppliers to enhance their digital interfaces, seeking seamless experiences, clear information, and faster response times.

Among the other key findings in the report was that enhancing the digital customer experience is now becoming essential for companies to differentiate themselves in the digital age. A strong DCX is regarded as no longer a “nice to have” but a necessity to remain competitive. Industrial manufacturing and construction companies surveyed considered an enhanced digital customer experience as now being “table stakes”, offering the potential to add value across the organisation, from presales, design, production and delivery to aftermarket and operate services.

As many as 93% of surveyed respondents indicated that they were experimenting with or implementing at least one DCX use case, and on average, they were implementing four. The study also forecast that investment in an enhanced DCX is expected to continue, with 81% of surveyed respondents planning to invest in at least one additional use case in the next one to three years.

The survey showed clearly that digital tools were achieving real results. Companies were making increasing use of digital tools such as artificial intelligence and machine learning (AI/ML), the internet of things (IoT) and specifically generative AI (GenAI) to provide personalised and “seamless” customer experiences.

Some seven in 10 survey respondents said they have seen increased customer loyalty and satisfaction by improving their DCX. A significant number of companies were shifting towards investments in AI/ML, GenAI and extended reality (XR) over the next three years.

Looking forward, an “exceptional” digital customer experience that encircles the customer with the personalised experience that they need – when they need it – was found to be a likely key differentiator for industrial manufacturing and construction companies.

Deloitte advised that to help seize the opportunity of establishing an exceptional digital customer experience, key success factors seem to be organising around customer needs, overcoming interoperability challenges, prioritising data security and developing talent with a blend of technical knowledge, digital skills and soft skills.

The survey results also demonstrate that industrial manufacturing and construction companies were moving forward with DCX initiatives using two fundamental approaches: enhancing the digital connection to customers and value chain partners to collect important customer behaviour data, facilitate collaboration, and share key insights that can improve the customer experience; and enhancing the digital connection to products.