How are you using technology to boost your customer satisfaction, loyalty & retention?
Evolving customer expectations have been found to be the main trigger to digital transformation in established companies. Your customers have higher expectations of online interaction with your brand. Did you know that 80% of purchases are researched online?
Digital transition requires an understanding of digital’s overall strategic disruption on your industry, i.e. how the competition is changing and how customer expectations are shifting. If your organisation is still working on basic digital ad-hoc tactics without a strategy, while the competition is feeding on all the opportunities, then you risk of being wiped out. Are you taking advantage of technology to improve your customer satisfaction, loyalty and retention?
Leaders must aggressively challenge the ‘existing’ rather than accepting current norms. Constantly ask “Why?” to all aspect of your business: re-question and redefine each system and process to find better ways of doing things to improve your customer’s experience across all channel. 89% of consumers switched to a competitor after one poor customer experience. This is the reason why your team should aspire to fix every error or bad experience, supported by processes that enable you to capture and learn from every interaction so as to constantly improve the experience.
Real-time data is crucial for leaders to take the right decision rapidly. The key here is to leverage the current assets (customer base, data, brand) using digital technology to attack competitors and/or defend their positioning. Make sure you monitor every initiative carefully to see what works and what does not so that you do not waste your time and resources. This need continuous experimentation to find the right agile systems and integration to process information as quickly as possible.
Platform: Test & select
First establish which technology platform is worth your investment: what platforms do your customer use? How are the innovators of your industry interacting pre-, during and post-purchase with their customers? Are there platforms that can help you both increase your operational efficiency and increase customer satisfaction? Companies that are successfully going through digital transition have started reaping great ROI on the platforms below:
|Social Media||Mobile computing||Big data & analytics||Electronic payments & settlement||Geolocation|
|Intelligence software||Infrastructure as a service (IaaS)||Software as a service (SaaS)||Industry specific platform||Internet of Things (IoT)|
A variety of experiments is crucial, but your team must quickly spot the most valuable digital investment and then double down.
Disruption: The right organisational and governance model
Digital revolution disrupts your current business model. One of the most common challenges is finding the right one for digital transformation. Most companies set up a strategic initiatives section that reports to a C-Suite Exec. However, the majority of digitally winners prefer setting up distinct digital business units so as to introduce digital practices without the legacy processes hassles. The challenge here lies in making sure that a digital culture runs throughout the organisation as a whole.
The Key: Your digital transformation leaders
Leading the transformation is not a one-man-job: 65% of digitally successful companies have a minimum of 2 C-Suite Executives assigned the leadership role on digital transformation. Primary leadership usually rests with the CIO or CTO and the CEO or COO. Some would also appoint a CDO, however, there is a tendency for the CEOs to lead the transformation themselves in highly disrupted industries. These leaders will set the aspirations and have targets that might seem unrealistic. This is because digital has to be seen as creating value, not as a channel to drive activities. You know your growth/market share or other targets are good enough when the rest of the company feels nervous about achieving them!
The future is now: Boosting your digital capabilities
You will need a fresh influx of digital talent to support your transformation plan. It is crucial that they have the right skills to bridge the gaps in your organisation. Having said that, successful companies are not afraid to look for help from outside: did you know that 51% of digital winners outsourced digital processes to third parties and 38% used an external consultant/provider to manage and execute digital initiatives? Be smart and hack your way into digital transformation if needed!
Only the beginning of the journey
Technology will keep changing and disrupting business models. Artificial intelligence, machine learning, virtual reality, crypto-currencies are just starting their penetration in few industries. The eventual objective of any digital transformation is a constant flow: nothing should be set in stone. Your organisation structure and culture should be flexible enough to adjust to the consequences of any new source of digital disruption. Do you know at what stage of digital development your company is? Find out by completing this 5-minutes self-assessment test or request a meeting with our digital transformation team by contacting us here!