Published on the 19/07/2016 | Written by Donovan Jackson

While the results of SAP’s New Zealand Digital Experience Report are multifaceted, the clearest finding is that digital transformation is a business imperative…

That’s the word from SAP NZ MD Graeme Riley, who was commenting on last week’s release of the study which tracks how well local businesses are delivering digital experiences, revealing a range from the great to the not-so-good. And, the report exposes the secret of excellent digital experience delivery – which turns out to be a little unexpected.

The big question is whether the gap between those doing digital well and those not doing it well is where disruption is likely to take place. Riley said this is probably a valid interpretation and handed over to colleague and corporate affairs ANZ head Perry Manross for further insight.

Manross prefaced his answer by noting that as this is the first year in which the study has taken place in New Zealand, it is not possible to track trends. “However, the ability for the poor performers to improve is dramatic – and the question is, can those businesses which received positive feedback continue to drive the gap, or will it close? That’s hard to tell.”

However, he said that ‘absolutely’ the gap between good digital experience delivery and bad opens up opportunity for disruptors.

But SAP’s research throws up a further conundrum which can be fiendishly difficult to nail down effectively: “It emerges that what customers find most impressive is not the functional issues on which most businesses focus, but the emotional ones.”

In other words, SAP has identified the thing that makes customers feel warm and fuzzy with a digital interaction and it can be summed up in one word: delight.

Or maybe even serendipity.

“Give customers a pleasant surprise in their digital experience and that is where the good Net Promoter Score comes from. Those who can see that and disrupt on that basis are the ones who can change industries,” Manross said.

Continuing, Riley said there were surprises from the consumer side which provide valuable insight for some businesses; what he was driving at is that some businesses believe they are delivering sound digital experiences, when their customers are telling quite a different story. For those companies, this highlights the necessity to do better by standing in their customer’s shoes.

“What was also interesting is to see which groups are doing better than the others; we may not have anticipated that banks and insurance companies are topping the polls as they often have low customer ratings, yet here they are topping digital experiences.”

Riley said that it is notable that while ‘native’ digital organisations tend to do best on digital experience delivery (Netflix was tops), the performance of top-rated bank BNZ and insurer AA demonstrated that it is not only the disruptors which are doing well. “Those who are embracing digital across the organisation are right up there. There are benefits to be had and [incumbent organisations] can do it, but you have to fully commit with positive action.”

Download SAP’s New Zealand Digital Experience Report.