May 22, 2023 The First Step to Solving Manufacturers’ CX Woes

The key to digital customer experience starts with the C-suite but requires full company alignment to be successful.

By Charles Desjardins, EVP & Managing Director of Commerce at Valtech

The manufacturing industry has undergone rapid digital transformation over the past few years to improve operational efficiency and supply chain visibility, leveraging technology like automation and big data. However, amidst this progression, manufacturers are confronting a new challenge: enhancing the digital customer experience (CX). According to McKinsey, less than 20% of manufacturers are meeting the digital expectations of today’s customers. 

So, what obstacles have manufacturers been facing when it comes to digitizing CX? Where should their journey start to ensure success?

The Shift Towards Favoring Digital Experience 

Lately, the global workforce has been experiencing a shift. Decision-makers are from younger generations and are therefore more accustomed to the digital world. Face-to-face interactions are no longer the sole means of building customer relationships, and the mentality around digital interactions in the B2B market is rapidly changing.

Customers today expect digital platforms, such as customer portals, that provide a personalized and contextualized experience while conducting business – from buying spare parts to finding machine information, training materials, available optimizations, and more. As part of this, customers are looking for the same ease-of-use they receive in a B2C environment to be translated to their digital interactions in B2B.

To stay competitive and keep up with this demand, large industrial manufacturers need to provide one unique, seamless experience for their customers.

Significant Issues Manufacturers Face

Unsurprisingly, manufacturing firms in the U.S. are facing significant challenges in their digital journeys. 

Post-pandemic dollars moving from hard goods to services and rising operational costs have become major concerns. As a result, a recent report from Valtech and Copperberg of global digital manufacturing leaders revealed maximizing business value as the main objective of digital transformation journeys. Manufacturers are having to show short-term ROI, and they’re mainly investing in digital initiatives that provide clear business value – whether that’s servitization, cost efficiency, or revenue growth.

Another big obstacle manufacturers are confronting is a lack of integrated martech solutions. Many have digital initiatives in place, but they are not all connected yet. This can create data silos, and therefore, inefficient communication and decision-making. Manufacturers’ operations and the end-to-end customer journey are negatively impacted in many ways as a result – including reduced data quality, increased costs, mistrust and poor collaboration across teams, and hindered ability to compete efficiently. 

To be successful in today’s market, and to continue to build on decades and sometimes centuries of business acumen, manufacturing leaders must bring together their data and digital services in a way that provides the seamless, unique experience their customers are seeking – while still seeing ROI in the short-term amidst tighter budgets and increased financial pressures.   –

The Starting Line: It Takes the Entire Company  

To achieve company goals when it comes to digital transformation, it’s crucial to start by defining and communicating a strategy and objectives that align all departments towards a common initiative, from IT all the way to sales. In Valtech and Copperberg’s global survey, 27% of manufacturing leaders said they lack a clear plan when it comes to their digital initiatives and operations because they are executed in isolation based on region, business unit, or project. To make matters more difficult, 1 in 10 respondents are not getting the C-level support they need to execute their digital transformation projects. 

The entire organization starting at the C-level must unite behind digital transformation initiatives to have a fully integrated view. Not only does this require a plan, but also the proper governance and talent in place to ensure the plan is delivered. This ensures digital transformation is adequately supported, taking into account both employees and customers. By doing so, manufacturers can have a better foundation to create successful customer experiences and remain competitive in an ever-changing digital landscape.

Charles Desjardins is EVP and Managing Director at Valtech, a global digital agency focused on business transformation. He leads the Commerce Service Line in North America. Valtech employs more than 5,000 people in 19 countries.

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