What is DX?

In a world of simple price comparison and customer reviews, a place of choice where the next competitor is just a click away, organisations are increasingly looking at positive customer experiences to differentiate themselves from their rivals.

This practice of customer experience management is referred to as CX and takes into account all the processes, connections, touchpoints and interactions that make up the experience people have whilst interacting with a brand or organisation.

The more straightforward and positive the experience, the more likely customers are to complete their transactions, enabling those businesses to compete and grow.

DX (also referred to as Digital CX or DCX) is a subset of CX and focuses exclusively on the digital elements of the experience.

As the sketch below illustrates, there are a broad range of elements that contribute to the digital experience and the goal is to manage these to provide positive outcomes for the customer.

Elements of DX

To help quantify a ‘positive digital experience’, it is useful to use the following criteria:

A positive digital experience…

  • meets the customer’s needs – Enabling the customer to solve their problem is a must-have.
  • is easy to do – This is also really important, as customers don’t want to exert significant mental and physical effort learning how to use new products or services.
  • is enjoyable – Once you’ve ticked off the two items above, the next step is optimising the experience so that customers leave with that ‘warm, fuzzy’ feeling and are keen to return and recommend it.

It’s also worth noting that DX is often mistaken for UX (user experience), but these are not the same thing.

UX focuses on the customer-facing aspects of the product or service that a person is using, such as the interface of a website or app.  It is one of the factors that contributes to the overall digital experience.

Why positive digital experiences are so important

Unfortunately developing positive digital experiences is harder than it sounds and while many companies have ambitions in this area, they don’t always succeed.

For those organisations that do succeed however, the benefits are very worthwhile.

Here are some examples:

  • Improved conversion rates – new customers are expensive to acquire, so you want to ensure their first experience of your brand will motivate them to complete the initial transaction (e.g. sign-up for your newsletter, make an enquiry, make a purchase) before they leave.
  • Improved retention rates – Completing the initial transaction and successfully onboarding the customer to your brand is important, because you will want them to keep on returning for more in the future, especially as returning customers are significantly more profitable than new customers once you have covered their initial acquisition cost.
  • Improved referral rates – Happy customers who have had a positive experience will be glad to refer your company to friends and colleagues, which means you get more customers without having to spend so much on acquisition marketing. At the same time unhappy customers who have had negative experiences are less likely to return and will probably advise others not to use your business.
  • Increased brand value – Positive experiences increase the value of your brand, which in turn helps you avoid competing on price, allowing you to charge premium prices and increase profitability.
  • Increased efficiency – Improving customer experiences forces organisations to look at ways to become more productive and efficient, making them more profitable in the process.
  • Happier employees – Staff are core to all organisations and the increased levels of training  and autonomy helps to reduce staff turnover, meaning less disruption to service and lower recruitment costs.

Learning how to manage the digital experience

As digital has become central to the success of nearly every organisation, it is vital for businesses to have the knowledge, tools and skills to continuously improve the digital experiences they provide.

This blog has been set up to become a hub of experience design resources, where people can learn more about digital experience design, find new ideas and inspiration.

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