Creating customer trust with tech innovation

Back in the day, customer demands were simpler and more straightforward. Brands mostly just needed to deliver a functional product or service within a specific budget. Over the years, the needs and expectations of the average customer have evolved and transformed. Today, your customer segment probably has a longer list of demands, including personalized products and services, omni-channel support, a strong social media presence and prompt customer service and complaint redressal mechanism. 

Improvements in information technology have only further accelerated and heightened customer expectations. To gain and keep your customers’ trust in this new era, your brand needs more than just aggressive marketing. It needs to innovate and continuously evolve. 

Innovations helped companies gain consumer trust

Technology is perhaps the biggest driver of brand innovations today. Tech-based innovation can help upgrade various verticals of a business, right from product development to customer service. Because it facilitates end-to-end transformation of your brand, technological innovation is perhaps the most effective tool available to build customer trust in this day and age. 

The healthcare industry has aced the digital innovation game in recent years. Teleconsultations and online pharmacies have made healthcare services more accessible for people from different walks of life. Tech-driven modernization has also enhanced the quality of medical care offered in hospitals, enabling less invasive medical procedures and surgeries. 

Another kind of innovation that brands need to focus on is product innovation. The FMCG industry is a prime example in this regard. From inventive packaging to customer-friendly product designs, many FMCG products have relied on ingenious changes to stand the test of time. This has helped gather the trust of millions of customers who believe in eco-friendly practices.  

The BFSI sector has also witnessed first-hand how technology-driven innovations can help augment customer trust. While the digitization process had started even before the pandemic hit the world, the last two years accelerated the journey, forcing companies to step up to the challenge and ensure a seamless transition to the virtual world.  

The insurance sector, for instance, responded to the situation with agility and leveraged new-age tech platforms for enhancing customer experience. Several companies launched virtual assistants and digital platforms to make remote and contactless policy servicing a reality. Physical meetings were taken over by video calls and WhatsApp communications. The entire customer journey on these portals is transparent and secure, right from onboarding to claim settlement, thereby fostering customer trust in the brand.  

Why innovations are the need of the hour for your brand 

Innovation is far from the last mile for organizations today. Instead, cutting-edge changes in different verticals can serve as long-term investments into your business. While the best brands across industries have always prioritized innovations, the pandemic further boosted the need to transform existing business processes to stay ahead of the game. 

That said, let us take a closer look at why it is important to innovate.  

Enhanced customer relationships 

Keeping the customer at the centre of everything makes them feel seen, heard and valued. When you take cognizance of the customers’ evolving needs, and innovate with your offerings to meet those needs, it strengthens their trust in your brand. Companies that fail to adapt and act quickly to the evolving macro environment, often lose out in the game. 

Better long-term returns  

When done right, innovation can drive up sales and increase customer satisfaction simultaneously. Data shows that a completely satisfied customer contributes 17 times more revenue than a dissatisfied one. So, brands that innovate in response to customer demands and actively keep pace with the changing business landscape tend to be successful in generating better returns over the long term.  

An edge over the competition  

Industry-wide innovation is one thing. But that alone is not enough. Your brand has to have its own inventive processes in place in order to stand out from the competition. Whether you rely on tech-driven innovation, product innovation or business process simplification, the end goal should be to make your customers take notice of your brand from among the many others in the same sector.  

Summing up 

In the face of declining customer satisfaction, many brands make the costly mistake of simply focusing on marketing or offering aggressive discounts. While these measures may temporarily increase customer engagement, lasting trust only comes from deep-rooted innovation. As a brand custodian, your objective should be to make the most of this long-term investment and build a culture of deep-seated trust and satisfaction.

Rajesh Krishnan

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Rajesh Krishnan is the Chief - Operations and Customer Experience at Bajaj Allianz Life.